The economy is beginning at equilibrium

Assignment Help Operation Management

Reference no: EM131434900

a) The economy is beginning at equilibrium. There is an increase in labour productivity with no connected increase in wages for workers. Assume that the price level is flexible downwards as well as upwards. What happens to the price level and RGDP as a result? Label the original point (A) and the new point after the shift as (B).

b) Now, assume that at the same time there is an increase in Government spending which results in a change in AD which matches the initial change in SRAS. Graph this scenario and demonstrate what happens to the price level and RGDP.

c) Is this level of RGDP sustainable? Explain. How can it be sustained in the Long Run?

Reference no: EM131434900

Questions Cloud

The benefit of utilizing the competitor matrix : The benefit of utilizing the competitor matrix is that you can learn more about your competitors and you can see how your business ranks with the competitors. You will be able to see where you may be lacking in some areas compared to the competition ..

The existence of a high-quality job analysis : How can the existence of a high-quality job analysis make a particular HR function, such as employee selection, less legally vulnerable? what are some reasons why effective negotiation skills are important? What are the four main strategic alternativ..

Explaining difference between positive and negative gossip : Write a short (225 word) memo explaining the difference between positive and negative gossip, and reminding employees of the impact of gossip in the workplace. Your memo should be written in standard memo format and should give specific examples of p..

Applying concepts-tactics and strategies learned thus far : During the 1980s, South Carolina Congressman Floyd Spence stated, "I have had a philosophy for some time in regard to SALT [Strategic Arms Limitation Treaty], and it goes like this: the Russians will not accept a SALT... that is not in their best int..

The economy is beginning at equilibrium : The economy is beginning at equilibrium. There is an increase in labour productivity with no connected increase in wages for workers. Assume that the price level is flexible downwards as well as upwards. What happens to the price level and RGDP as a ..

Calculate the center line-upper control limit : Twenty samples with 100 units each were taken; with the following number of defectives in each respective sample: 8, 5, 3, 9, 4, 5, 8, 5, 3, 6, 4, 3, 5, 6, 2, 5, 0, 3, 4, and 2. Calculate the center line, upper control limit, and lower control limit ..

What are the pitfalls with e-mail bargaining : While e-mail bargaining can be very useful and help parties quickly move through the process, there are also pitfalls associated with this method. Applying concepts, tactics and strategies learned thus far, what are the pitfalls with e-mail bargainin..

Describe each of four costs of quality-prevention-appraisal : Describe each of the four costs of quality: prevention, appraisal, internal failure, and external failure. Describe how and why each would change if we hired more inspectors without changing any other aspects of quality.

What is the benefit of utilizing the competitor matrix tool : What is the benefit of utilizing the competitor matrix tool as part of the competitor analysis process? Think of a company that you can apply the matrix analysis process to. Why do you think consumers prefer that company versus their competitor?

User Account

All Pages