User Account

All Pages

Which curve will be affected and to which direction

Assignment Help Macroeconomics
Reference no: EM132506449

Suppose that people suddenly become pessimistic about the future. Use the model of aggregate demand and aggregate supply to analyze the effects of this change. (You don't need to draw the graph)

(a) Which curve will be affected and to which direction? How do the price level and output change in the short run?

(b) If we let the economy to adjust by itself, how does the economy restore the long-run? Which curve will shift and what happens to price level and output?

(c) If the central bank does not want to wait for self-adjustment, what policy can the central bank use? Which curve will be affected and to which direction?

Reference no: EM132506449

Questions Cloud

Determining the technological advancement : Which of the following statements is true, which statement is false? Explain for each statement whether it is true or false.
Did use sales discount : What is (are) the worst decision(s) you have made throughout the 16 quarters of playing? Please explain why you think it is (they are) the best decision
What is the marginal propensity to consume in economy : Consider an economy described by the following equations: Where Y is GDP, C is consumption, I is investment, G is government purchases, T is taxes, and r is the
Calculate the equilibrium consumption in the economy : i) Assume government expenditure (G) = $820 million, calculate the equilibrium consumption in the economy.
Which curve will be affected and to which direction : Which curve will be affected and to which direction? How do the price level and output change in the short run?
Examples of nepotism raise serious moral concern : Examples of nepotism raise serious moral concern. Give me three situations you or somebody you know well had exposed to where they are not considered moral
Bank open market operations managers : If you are one of the Bank's open market operations managers, heard the news that the Covid-19 epidemic struck almost 30% of the Business World
Decrease structural unemployment : - When more people who are not working start looking for jobs, the labor-force participation rate increases.(is it true or false)
Find what is the present value of the payments will receive : AAA, BBB, CCC, and D. Describe the differences between the bond ratings. Identify the strengths and weaknesses of each rating.

Reviews

Write a Review

Macroeconomics Questions & Answers

  What fiscal policy and monetary policy would be appropriate

Write your individual answers to the questions listed above together in essay format (minumum of 300 words combined in APA style), using correct economic terms covered in the discussions. If you only write 300 words, you probably won't be able to ..

  Sketch a supply and demand graph to explain this change

Sketch a supply and demand graph to explain this change. Be sure to label your graph and clearly indicate the change of the curve.

  Summarize the ethical issue

Construction contracts bring up not only legal questions and considerations but ethical issues as well. After researching common ethical issues related

  What is the total production

Assume that Andrea each has 480 minutes available. If each person divides his time equally between the production of wheat and beef.

  Which one of the following is not a limitation of gdp

1. Which one of the following is not a limitation of GDP? 2. Which one of the following measures is obtained by adjusting GDP?

  Compute and contrast at least two two-year forcasts

Compute and contrast at least two two-year forcasts from separate sources for two economic indicator.

  What is the relevant market you would analyze

What is the relevant market you would analyze? (That is, which products and which geographic area(s) would you focus on? In other words, how would you label the horizontal axis of you supply and demand curve graph?

  Challenges and opportunities for the indian economy

Explain the characteristics and effects of import-substitution industrialization process undertaken - Expose the main challenges and opportunities for the India

  Describe the role of banking and financial intermediaries

Describe the role of Banking and Financial Intermediaries in the economy and how banks create money through lending, as well as the Deposit Expansion Multiplier.

  Return funds issued by an increment factor

Explain why mortgage rates have a given interest fee hence all borrowers have to return funds issued by an increment factor?

  Examine major complexities that would arise under expansion

Examine the major complexities that would arise under expansion via capital projects. Propose key actions that the company could take in order to prevent or address these complexities.

  Explain factor that will affect demand and prices of product

Define the type of market in which your selected product will compete, along with an analysis of competitors and customers. Explain the factors that will affect demand, supply, and prices of that product.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd