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Q1 if the equilibrium level of aggregate expenditure is 80

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Q1. If the equilibrium level of aggregate expenditure is 80 billion as well as there is a reduction in consumption of 2 billion, what will the new equilibrium level of aggregate expenditure be?

Q2. Clarify the statement: "Fixed costs exist only in the short run. There are no fixed costs in long run." Why might the time frame for the "short run" differ from one industry to the next? Provide examples of two industries with different time frames for the short run. Clarify why this is the case.

Reference no: EM13353509

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