Affects of lower price level in aggregate demand

Assignment Help Business Economics
Reference no: EM13898637

A lower price level in the United States affects the purchases of imported goods. Select all of the following affects of a lower price level in the United States on aggregate demand.

A. Quantity of aggregate demand increases

B. Aggregate demand increases

C. Import purchases increase

D. Import purchases decrease

Reference no: EM13898637

Questions Cloud

How many units of labor should this firm hire : (L,K)=K1/2L1/2 Also, in the short-run capital is fixed at K=16. You also know that the wage rate for workers is w=10, the price of capital r=20 and that the price for the product is P=100. How many units of Labor should this firm hire in order to max..
Competitive setting in which oligopoly firms operate : In the highly competitive setting in which oligopoly firms operate, which of the following are considered to be typical temptations each may face?
Differences between relevant and irrelevant costs : In the chapter "Short-Term Decision Making," you are exposed to several cost concepts. Write a brief summary (3–5 paragraphs) of how these cost concepts relate to short- and long-term decision making for a company. Include an explanation of the diffe..
Bout the ins and outs of budgeting : Your co-worker wants to know more about the ins and outs of budgeting. In 3–5 paragraphs, describe the role of budgeting in businesses and the costs and benefits associated with it. Further, explain the elements of a behaviorally sound budget culture..
Affects of lower price level in aggregate demand : A lower price level in the United States affects the purchases of imported goods. Select all of the following affects of a lower price level in the United States on aggregate demand.
Government wishes to lower the exchange rate : Suppose the government wishes to lower the exchange rate, ε, but not to change real output, Y. What monetary or fiscal policy, or combination of the two, does it need to use to do this? Assume that exchange rates are floating.
Services are illegally sold or legally sold : Many goods and services are illegally sold or legally sold but not reported to the government. How would increased efforts to count those goods and services affect our calculation of GDP?
Price level causes decrease in real gross domestic product : The ______________ effect helps explain why an increase in the price level causes a decrease in real gross domestic product.
Real gdp will decrease when the price level falls : In the short run, real GDP will decrease when the price level falls due to:

Reviews

Write a Review

Business Economics Questions & Answers

  Utility function for chocolate and ice cream

Problem 1: David has $50 to spend on chocolate (X) and ice cream (Y). The price of chocolate, PX, is $5, and the price of ice cream, PY, is $8. His utility function for chocolate and ice cream is given by U = 2X1/4Y1/5.

  Compute the unemployment rate in august

Discussion on game theory concept, basic application for planning also how game theory is used to model behavior; types of games and how they are played.

  Determine the initial strategy for players and for owners

The Baseball Players’ Association has voted to go on strike if a settlement is not reached with the owners within the next month. The players’ representative, Melvin Mulehead, has two strategies (containing different free agent rules, pension formula..

  Consider an individual who faces a gamble over two outcomes

Consider an individual who faces a gamble over two outcomes, In the first outcome he maintains the wealth of w1, and in the second outcome he faces a loss of wealth and is left with a final amount of w2.

  When a firm pursues a predatory pricing strategy

When a firm pursues a predatory pricing strategy, it does so

  Circumstances is expansionary fiscal policy

In which of the following circumstances is expansionary fiscal policy more likely to lead to a short-run increase in investment? Check all that apply.

  Hours of typing on the horizontal axis and hours of filing

Draw a graph with “hours of typing” on the horizontal axis and “hours of filing” on the vertical. Do your indifference curves slope upward or downward? Why? Would you expect the indifference curve to be steeper or shallower at points that represent a..

  Reasons to support such trade restrictions

Firms hurt by cheap imports typically argue that restricting trade will save U.S. jobs. What’s wrong with this argument? Are there ever any reasons to support such trade restrictions?

  Thinking is product of the century

Karl Marx’s thinking is a product of the l9th century. There have been great economic, political, and technological changes since then.  How are his theories to be evaluated today? Are they perhaps obsolete and outdated?

  What is the difference between hedging and speculating

What is the difference between hedging and speculating? Give an example of speculating using commodity futures and speculating using financial futures.

  Determination about whether an individual

Determination about whether an individual is an Indian is made by:

  What is the promised yield to maturity

Assume that Garvin Enterprises', Corp. coupon bond currently sells for $5,800. Bond has a 5 year maturity, an annual coupon payment of $261, and a future value of $5,800. What is the promised yield to maturity on Garvin Enterprises' bond?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd