Responsible for short-run fluctuations

Assignment Help Business Economics
Reference no: EM131548043

Describe why economists believe that "shocks" and "sticky" prices are responsible for short-run fluctuations in output and employment. Provide an industry example to illustrate your explanation.

Reference no: EM131548043

Questions Cloud

How the outcomes will be measured based on the evidence : Describe the ways in which the outcome measures evaluate the extent to which the project objectives are achieved.
What is present value of the cash flows : What is the present value of the cash flows?
Does the court system really need appellate courts : Does the court system really need appellate courts? How does this group of unelected officials affect the separation of powers?
The money European put option on Eagletron stock : What is the value today of a one-year at-the-money European put option on Eagletron stock?
Responsible for short-run fluctuations : Describe why economists believe that "shocks" and "sticky" prices are responsible for short-run fluctuations in output and employment.
Relationship between aggregate demand and consumption : What is the relationship between aggregate demand and consumption? Describe the various components of Aggregate Demand and the importance of each.
What parts of lenin analysis : What parts of Lenin's analysis do you think Keynes would reject? Explain.
How the hmo can use its capital funds : To seek shelter from the competitive storm, Marcus Welby Hospital (MWH) is considering forming a joint venture with an existing for-profit HMO.
Relationship between the old world and the new world : In your answer, explain each of Keynes' four sources of potential instability-population, organization, psychology, and the relationship between the 'old world

Reviews

Write a Review

Business Economics Questions & Answers

  Prices have been steadily increasing over the last few years

Arkensland is a highly industrialized countr. Prices have been steadily increasing over the last few years and inflation reached an all-time high of 8 % last year. Following this, the central bank came under pressure to reduce inflation to least 4 % ..

  What was the effect on the market for vintage baseball cards

In the 1990's, helped by desktop publishing software that proliferated during that time, the number of vintage baseball card forgeries flooded the market for vintage baseball cards. Dealers left the market for fear of purchasing a phony. What was the..

  Why are these economists-market participants so optimistic

The Wall Street Journal recession probability tracker shows the likelihood that the US will enter a recession in the coming 12 month between 0 to 75 percent, the widest range since the Great Recession, despite the average likelihood trending downward..

  Any combinations or conspiracies in restraint of trade

Should sports leagues be allowed to remain as cartels? More than 100 years ago, the American legislative leaders decided that it was necessary to pass laws prohibiting "...any combinations or conspiracies in restraint of trade." However, the professi..

  Quantity demanded and quantity supplied

Look at Demand and supply; and quantity demanded and quantity supplied; they sound alike, but are different. What causes movement along the demand and supply curves and what causes the demand and supply curves to shift left or right; that is; what ca..

  Super conducting magnetic energy storage systems

How much can the manufacturer of super conducting magnetic energy storage systems afford to spend now on new equipment in lieu of spending $75,000 four years from now? The company’s real MARR is 12% per year and the inflation rate is 3% per year.

  Legislature passes proposed law-will increase labor cost

The Governor of Arkansas has asked you (her crack economic advisor) to analyze how employment in trucking and poultry processing will be affected if the legislature passes a proposed law that will increase labor cost in both industries by ten percent..

  Combinations on the demand curve

NEED SOLUTIONS FOR PART B AND C. A market is characterized by a demand curve that can be expressed as P = 96 – (1/3) Q. Each of the firms currently serving the market has a total cost function of the form C = 12 q so MC = ATC = 12. There are no fixed..

  Private economy also the multiplier in a mixed open economy

Illustrate what is the difference among the multiplier in a closed private economy also the multiplier in a mixed open economy.

  Midpoint method to compute your cost elasticity

Use the midpoint method to Compute your cost elasticity of demand as the cost of DVD's

  Would you recommend that the pipeline be installed

Fifteen families live in Willow Cannon. Although several water wells have been drilled, none has produced water. The residents take turns driving a water truck to a fill station in a nearby town.

  Monetary policy will move the economy to point

The economy is initially at point 1. Ideally, __________ monetary policy will move the economy to point __________.

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