Discuss the type of inflation this would lead to

Assignment Help Business Economics
Reference no: EM132661457

Assume the aggregate demand of an economy is rising at 3%, but its productive capacity is only rising at 2%. Discuss the type of inflation this would lead to. Use a diagram to motivate your answer.

Reference no: EM132661457

Questions Cloud

Determine what is the sales revenue : Determine what is the Sales Revenue? Assuming there are no other items to be considered and that the Income Taxes are 25% of Net Income Before Taxes.
Events affect the economy in immediate and long term : explain how would each of the following events affect the economy both in the immediate and in the long term.
What is the amount of total charges to profit or loss : What is the amount of total charges to profit or loss in 2019? On January 1, 2019, an entity showed land with carrying amount of P10,000,000
Explain the type of pricing strategy : Explain the type of pricing strategy that you as the manager of a company would implement for Good X and Good Y with the following price
Discuss the type of inflation this would lead to : Discuss the type of inflation this would lead to. Use a diagram to motivate your answer.
What is the amount of interest expense to be recognized : What is the amount of interest expense to be recognized in 2019? On January 1, 2018, Madali Company borrowed P5,000,000 from ABC Bank at variable rate
Explain how fiscal policy can be implemented : Explain how fiscal policy can be implemented if an economy is in the downswing of a business cycle.
What questions you want to answer from the dataset : Find a data set, generate your topic based on the type of dataset and what questions you want to answer from the dataset. The following task need to be.
Explain the factors that lead to statistical discrimination : Explain the factors that lead to statistical discrimination. Explain the taste for discrimination model.

Reviews

Write a Review

Business Economics Questions & Answers

  What is definition of contract-what are required elements

What is the definition of a contract? What are the required elements? What is the distinction between a void and avoidable contract; between an executive and an executor contract; and between a unilateral and bilateral contract?

  Upgrading their athletic facilities

Cornell has two options for upgrading their athletic facilities. The off-campus option costs only $20 million, but it will require frequent bus service

  What is corresponding marginal cost function

Assume that firms in the perfectly competitive ice cream industry face a total cost TC = 2Q² + 2Q + 100. Sofia is a producer in this industry and faces

  Concerns corporate-level strategy

Over the last seven chapters you have hopefully been reading each chapter’s “running case”- Wal-Mart. Given that this chapter concerns corporate-level strategy, it is appropriate that we tie together the elements of the running case to consider Wal-M..

  Forecasts play an important role in state and federal levels

You now should realize how important it is for economists to try and predict future conditions of the U.S. economy. Economists are also interested in the performance of the economy at a more local level. Discuss how local and national forecasts play ..

  Prevent financial crisis-to restrict risk taking by banks

To prevent financial crisis, the central bank lowers the _______, which should _______. During the financial crisis, many borrowers defaulted on their loans and put many institutions at risk of failure. Policymakers could prevent failure by: To restr..

  Maximize total surplus for the society

Would allowing or prohibiting price gouging maximize total surplus for the society? Would this be protecting the people? And what kind of people

  Permitting production of particular good

When will the society be better off not permitting production of a particular good?

  Think marketers perpetuate unrealistic body images

Do you think marketers perpetuate unrealistic body images? Why/not? Do the body images marketers perpetuate negatively impact people’s self-images? Why/not? Do you feel like this is an ethical issue that should be addressed by the American Marketing ..

  What is her opportunity cost

If mary decided to go on the road trip, what is her opportunity cost?

  What is an externality

What is an externality? Provide at least three examples. How does one of the examples you provided affect the market outcome?

  Find the equilibrium price-quantity and revenue in market

Betty can make either “12 bottles of wine and 0 boxes of chocolates” or “0 bottles of wine and 96 boxes of chocolates” or a combination of wine and chocolates. Find the equilibrium price (P), quantity (Q), and revenue in a market characterized by the..

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