Define causes a movement along aggregate demand curve

Reference no: EM13192682

A change in the real money supply can result either from a change in the nominal money supply though Federal Reserve policy (holding the price level constant) or from a change in the price level (holding the nominal money supply constant). The change in the nominal money supply causes a shift of the aggregate demand curve, whereas a change in the price level causes a movement along the aggregate demand curve.

Reference no: EM13192682

Questions Cloud

For what price does the firm make positive profit : What is the firm's individual supply curve Suppose that the price of typewriters is p = $20. How many typewriters should the firm produce to maximize profit What is the firm's profit at this price For what price does the firm make positive profit

State how the isomerization from trans to cis isomer : how the isomerization from trans to cis isomer might occured. How does this compare to the isomerism of trans-[Co(NH3)4Cl2]Cl?

What is the probability that they sold over 1000 dollar : You are the sales manager for an appliance store. You have a total of 100 sales people. 40 sales people sold $1000 or less and the rest sold over $1000. Of the 40 who sold $1000 or less, there is a 0.20 probability that the sales person was new.

Find the profit maximizing output and price : Consider a demand function x = 100 - p where x is output and p is price. A monopolist has cost C(x) = (1/3) x^3 - 7 x^2 +111x +50 Find the profit maximizing output (and price) such that x 0. Check to see if you have a local max or min and also chec..

Define causes a movement along aggregate demand curve : A change in the real money supply can result either from a change in the nominal money supply though Federal Reserve policy (holding the price level constant) or from a change in the price level (holding the nominal money supply constant).

What is the optimal short run output : The short run optimal cost of Ohio Bag Company is 2Q. Price is $100. The company operates in a competitive industry. Currently, the company is producing 40 units per period. What is the optimal short run output.

Waht is the later years student cpi : Suppose that the typical student consumer basket is made up of only three items: The typical student consumes 1000 meals each year, makes 12 housing payments each year, and pays for 40 credit-hours of tuition each year.

State the mechanism to convert nine-fluorenol : the mechanism to convert 9-fluorenol to 9-methoxy fluorene using a nucleophilic substitution reaction with H2SO4 and methanol.

Compute the substitution effect on her demand for x : Cindy consumes goods x and y. Her demand for x is given by x(px, m) = 0.05m -5.15px. Now her income is $419, the price of x is $3, and the price of y is $1. Now , assume the price of x rises to $4, the income is still $419.

User Account

All Pages