Aggregate demand or aggregate supply

Reference no: EM13695036

What effect would each of the following have on aggregate demand or aggregate supply? Explain.

a. A decrease in real interest rates paid by the consumer

b. An increase in Labor Productivity as a result of a better-educated population

Reference no: EM13695036

Questions Cloud

Distinguish between firms with and without market power : An increase in R&D induced by, say, government subsidies could result in a higher rate of product obsolescence, with new products replacing older ones at a faster rate. How does this "side-effect" of the subsidies affect firms' incentives to invest i..

Explain monopolists output decision-equimarginal principle : Explain the equimarginal principle. Describe and explain a monopolist’s output decision. Explain why a price-fixing cartel is difficult to maintain. Put in plain words the concepts of adverse-selection and moral hazard. Explain the consequences of a ..

Best investment opportunity for linda : Linda inherited a sum of $50,000 from one of her grandparents. She would like to wisely invest the inheritance in one of the following three investment opportunities available for a period of 10 years. Help choose the best investment opportunity for ..

What is the total interest paid through the life of the loan : Assume that a piece of property is purchased for $200,000. A 20% down payment is made and the rest is financed through a 15-year mortgage loan with a 5 1/4 0/0 annual interest rate, compounded monthly.

Aggregate demand or aggregate supply : What effect would each of the following have on aggregate demand or aggregate supply? Explain.

Beliefs is not part of supply-side economics : Which of the following beliefs is not part of supply-side economics?

What is the after-tax investment value of the machine : A corporation purchased a machine for $60,000 five years ago. It had an estimated life of 10 years and an estimated salvage value of $9,000. The current BV of this machine is $34,500. If the current MV of the machine Is $40,500 and the effective inco..

What is the total price per widget paid by widget buyers : Demand in the widget market is given by QD = 30 – P, and supply is given by Qs = P + 6. The government imposes a tax on suppliers of t on every widget sold. After the tax is imposed, what is the total price per widget paid by widget buyers?

Marginal-total products of labor based on this information : An estimate of the physician’s marginal product rises up to 25 hours and then slowly falls to zero at 110 and thereafter negative. Graph both the marginal and total products of labor based on this information.

User Account

All Pages