Reference no: EM13831125
1) Answer questions a through f on the basis of the following graph:
If the actual price level exceeds the expected price level reflected in long-term contracts, real GDP equals __________ and the actual price levels equals _________ in the short run.
The situation described in part (a) results in a(n) _________ gap equal to _______.
If the actual price level is lower than the expected price level reflected in long-term contracts, real GDP equals ________ and the actual price level equals _______ in the short run.
The situation described in part (c) results in a(n) ________ gap equal to _______.
If the actual price level equals the expected price level reflected in long-term contracts, real GDP equals _______ and the actual price levels in the short run.
The situation described in part (e) results in a(n) _____gap equal to ______.
2) List three factors that can change the economy’s potential output. What is the impact of shifts of the aggregate demand curve on potential output? What is the impact of shifts of the aggregate demand curve on potential output? Illustrate your answers with a diagram.
3) Give an example of an adverse supply shock and illustrate graphically. Now do the same for a beneficial supply shock
|
What is the price elasticity of labor supply
: Suppose a wage increase from $11 to $13 an hour increases the number of job applicants from 42 to 56. What is the price elasticity of labor supply?
|
|
Previously passing the massachusetts bar exam
: Anthony Antunicci, a Massachusetts lawyer, has tired of the long, cold New England winters. He recently spent three months in Florida where he took a Florida bar review course which enabled him to successfully pass the Florida bar exam. Can Anthony d..
|
|
What is the equilibrium quantity supplied and demanded
: Suppose that the demand curve (hundreds) for apples is given by Qd = 140 - 5P, where Qd is the number of pounds demanded per year and p is the price per pound. The supply of apples can be described by Qs = 40 + 5P, where Qs is the number of pounds pr..
|
|
Price elasticity of demand for two customer segments
: KING Airlines has determined that the price elasticity of demand for two customer segments (Business Class and Coach) is -1.50 and -1.75. Based on their expectations of profitability, KING realizes the price of a Coach Seat should be $155 (one way). ..
|
|
Actual price level exceeds expected price level reflected
: If the actual price level exceeds the expected price level reflected in long-term contracts, real GDP equals __________ and the actual price levels equals _________ in the short run. List three factors that can change the economy’s potential output. ..
|
|
Estimated the demand for cable television services
: An economist has estimated the demand for cable television services in Eastern Pennsylvania, and has found the following elasticities: If the cable television company wants to increase revenues, it should increase price.
|
|
Consumption function-consumption spending on vertical axis
: Graph the consumption function, with consumption spending on the vertical axis and disposable income on the horizontal axis. If the consumption function is a straight line, what is its slope?
|
|
What are international considerations for nordstrom
: What are International Considerations for Nordstrom?
|
|
Multipoint description of the trade or business
: We know that Keynes and Minsky both had a multipoint description of the trade, or business, cycle with Minsky being more detailed than Keynes. Using Keynes' elements of the trade cycle as major bullet points, as-sign Minsky's elements of the business..
|