Aggregate demand or short-run aggregate supply

Assignment Help Macroeconomics
Reference no: EM131096086

Answer one of the following questions:

A. While having a haircut, the hairdresser heard you were studying macroeconomics and said "The reason the aggregate demand curve slopes downward is that when the price level is higher, people cannot afford to buy as many goods and services". Do you agree or disagree with the hairdresser's statement? Explain.

B. List three variables that would cause a decrease in real GDP--indicate whether changes in each variable increase or decrease aggregate demand or short-run aggregate supply. Next, state three variables that would cause an increase in the price level--indicate whether changes in the variable increase or decrease aggregate demand or short-run aggregate supply.

Reference no: EM131096086

Questions Cloud

Career options for a paralegal : Reflect back on your first four weeks and all the information you have learned. Also take into consideration the information provided in the article. Please answer the following questions:
Examine how the described problem might happen : When you get to the end of the scenarios, one scenario will have the word "Transcultural" on the top right corner. Click on "Transcultural." Read the scenario and answer the four questions that are provided.
Patients taking antihypertensive agent : Multiple drugs are often used in treating hypertension. Suppose 10% of patients taking antihypertensive agent A experience gastrointestinal (GI) side effects, whereas 20% of patients taking antihypertensive agent B experience such side effects.
Benefit from price discrimination : Buyers also benefit from price discrimination. Those with lower reservation prices would be excluded from buying the good if the rebate were not offered. In this case, some buyers whose reservation price is at least as high as the discounted price..
Aggregate demand or short-run aggregate supply : Next, state three variables that would cause an increase in the price level--indicate whether changes in the variable increase or decrease aggregate demand or short-run aggregate supply.
Power and violence are opposites : "To sum up: politically speaking, it is insufficient to say that power and violence are not the same. Power and violence are opposites; where the one rules absolutely, the other is absent. Violence appears where power is in jeopardy, but left to its ..
Spss-graphing-basic descriptive statistics : A word document containing answers to the questions below only including appropriately labeled and formatted supporting tables and graphs ~ 120 points
Extensive damage to both public and private oyster grounds : Oil spills in the Gulf of Mexico have been known to cause extensive damage to both public and private oyster grounds along the Louisiana and Mississippi shores. One way to protect shellfish along the shoreline is to release large volumes of fresh ..
Demand or supply for hairdressers when imposed : The market equilibrium wage is currently $12 per hour for hairdressers. Legislation imposed a minimum wage of $11.50 per hour. If there are no changes to either the demand or supply for hairdressers when imposed, the number of hairdressers will be?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Were smith liable for smoke damage and the cost of filter

Smith can produce with or without a filter on his smokestack. Production without a filter results in greater smoke damage to Jone. The relevant gains and losses are as follows: Gains to Smith: $200/wk with filter; $245/wk without filter.

  Explain how the economy affects the success

Explain how the economy affects the success of the auto industry. Economic influences that can affect the industry in a negative way.

  What modifications of current approach would you recommed

Many economists have attempted to create a set of social accounts that would come closer to measuring the economic well-being of the society than does GDP. What modifications of the current approach would you recommend to them

  Elucidate the increasing returns to scale as a basis

Elucidate the increasing returns to scale as a basis for international trade. Be sure that you define the relevant concepts, describe important features of such trade, and contrast these features with those of trade due to other causes.

  Compute the growth rate forecast using constant growth

Compute the 10-year growth rate forecast using the constant growth model with annual compounding, and the constant growth model with continuous compounding for each occupation.

  Explain how do these tools influence the money supply

Explain how do these tools influence the money supply, and in turn, affect macroeconomic factors.

  Clipit utilize this advantage to be the first to choose

Clipit utilize this advantage to be the first to choose its profit-maximizing output level in the market.

  Illustrate what percentage of the ceos total earnings

Illustrate what percentage of the CEO's total earnings is tied to profits of the firm.

  Explain the causes of recent recession and when

Explain the causes of recent recession and when it started and when it technically ended. Finally why the recent recession was called the worst recession after the great depression.

  How are the results the same or different

How are the results the same or different? Explain why the results would be the same or different.

  Illustrate the current equilibrium in a two-part diagram

Suppose that there are 1,000 hot-pretzel stands operating in Toronto.Each stand has the usual U-shaped average total cost curve.

  In order to maximize profits monopolies produce where

in order to maximize profits monopolies produce where marginal revenue marginal cost lt market price. contrast this to

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