What forces will bring the economy to long-run equilibrium

Assignment Help Business Economics

Reference no: EM13819162

If an economy is in short-run equilibrium that is below potential, what forces will bring the economy to long-run equilibrium?

Reference no: EM13819162

Questions Cloud

Determine the breakeven output : Offshore Petroleum's fixed costs are $2,500,000 and its debt repayment requirements are $1,000,000. Selling price per barrel of oil is $18 and variable costs per barrel are $10. Determine the breakeven output (in dollars). Determine the number of bar..

Structuring a business as a partnership versus a corporation : Please identify and discuss advantages and disadvantages of structuring a business as a partnership versus a corporation. How have state LLC laws changed the effectiveness of a partnership from both a legal and taxation point of view?

What is the overall-combined profit given elasticity range : A proposal has been advanced to limit advertising of pharmaceutical prices to prevent unfair pricing by national chains. You estimate that limits on price advertising will change the price elasticity of demand from -5.63 to -4.43. From the pharmacis..

Values of exchange rate in the short and long run : R = 3% (annual domestic interest rate), R* = 5% (annual foreign interest rate) E = 2 (current spot rate; expressed as the price of pound in terms of us dollar) If the domestic money supply increases by 10% and drive the interest rate down by 1% in th..

What forces will bring the economy to long-run equilibrium : If an economy is in short-run equilibrium that is below potential, what forces will bring the economy to long-run equilibrium?

Process model to effectively market the product : In a well-researched essay, explain how the company has used the consumer decision process model to effectively market the product or service to you. This essay should detail the strategy based on the model, explain why the strategy was successful fo..

Some rivalry in many monopolistically competitive markets : In an oligopolistic market, firms pay close attention to the strategies of their rivals. In monopolistic competition, with a large number of sellers, it is assumed that there is not this kind of rivalry, or interdependence. Why is there probably some..

Economist magazines schools brief-state and market : This question is based on The Economist Magazine's Schools Brief: State and Market - which has its own module in Etudes

Goal of eliminating absolute poverty and income inequality : When it comes to the goal of eliminating absolute poverty and income inequality, most economists would argue that

User Account

All Pages