Discuss the long-run impact of the shock

Assignment Help Business Management
Reference no: EM131368128

Suppose the economy begins at full employment, "An increase in personal income taxes shocks," use aggregate demand and aggregate supply analysis to:

a. Analyze the short-run impact: begin by saying what causes the curve to shift. Explain what happens to inflation, real interest rates, exchange rates, consumption, investment and net exports and output.

Use the AS-AD graph to illustrate and please explain why the variables changes as you have indicated.

b. Discuss the long-run impact of the shock after the economy self-adjusts. Illustrate with the graph and explain why output returns to potential.

Reference no: EM131368128

Questions Cloud

Can tests predict later achievement : Can tests predict later achievement? Are they fair to interviewees?What are some of the changes of the 1900 ideas of John Dewey's controversial IQ tests adjustment curriculum and today's educational testing curriculum? Does testing help define achi..
Representation of minorities and women in local politics : Describe the trends in representation of minorities and women in local politics and the impact of their participation. Your essay should be at least 200 words in length.
Draw a block diagram of the system : Write VHDL code for the shift-register module. Use two processes (one for the combinational part of the circuit, and one for updating the registers).
Develop a set of kpis for innovative widgets : Identifying customer issues and opportunities to increase customer satisfaction or meet customer needs - assisting team members to improve customer service
Discuss the long-run impact of the shock : Discuss the long-run impact of the shock after the economy self-adjusts. Illustrate with the graph and explain why output returns to potential.
Write an essay on respiratory therapist career : Discuss the reasons you have for choosing this pathway.- What information would be helpful to you as you consider the options in the pathway?
The role of government in the economy : With the ongoing debate about Healthcare and the current efforts to pull the economy out of the doldrums, the question comes up what is the role of government in the free market?
Identify the primary benefits of byod in organizations : Identify the primary benefits of BYOD in organizations, and determine the key ways in which its concepts can enhance an end user's overall working experience.
Draw a state diagram for the control : Write VHDL code for the system. Use two processes. The first process should determine the next state and control signals; the second process should update the registers on the rising edge of the clock.

Reviews

Write a Review

Business Management Questions & Answers

  State import industries are most likely to be less sensitive

What import industries are most likely to be less sensitive to changes in foreign goods due to exchange rate changes? What industries would be most sensitive?

  What is international strategic management

What is international strategic management? How do international, corporate, business, and functional strategies differ? Describe the value chain and how it is used to assess a firm's strengths and weaknesses.

  Training and development in small businesses

State the problem, your method of finding the answer (literature review), what you found, and your conclusions.  This is written after the paper so it is in the past tense.  No more than 250 words.

  Explain how would you go about convincing other managers

You are a manager and you believe the expense reimbursement system for salespeople is far too slow, taking weeks instead of days. Explain how would you go about convincing other managers which this problem needs to be addressed?

  Explain brand images have on consumer behaviour

A brand image is one way a firm can distinguish its good or service. But numerous questions are now being raised about the effect brand images have on consumer behaviour.

  How could you reconcile the social agenda

How could you reconcile the social agenda - make radios freely available - with the commercial challenges of running a business? What problems do you think Freeplay/Lifeline Energy face in trying to sustain the business?

  Show effects of business email communications

How can e-mail end up consuming organizational resources, leading to miscommunications, and eroding productivity?

  The devil wears prada

Please discuss the relationship between job attitudes, stress, and behavior. (no plagarism! use your own words and make it easy to read. )

  Attitude assessmentin strategic planning and considering

attitude assessmentin strategic planning and considering external factors one of my classmates brought the following

  Perfume and the scent permeates from your computer

Computers that offer smells - click on the perfume and the scent permeates from your computer. You no longer need to go to the store to see if you like it.

  Leadership model relevancequestion why do you think some of

leadership model relevancequestion why do you think some of the leadership models that were developed 20 to 30 years

  Problem regarding the proactive prevention

For this assignment, locate and read the case study titled "Proactive Prevention" at the end of section 4.4 of the Course Text.  Based on the information in this case, thoroughly complete the following:

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