Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Aggregate supply and the AS curve
The AS curve is the aggregate supply as a function of P. It is horizontal when thesupply is low and upward sloping when the supply is high.
From the relationship between L and P we can derive the relationship between YS and P as YS is concluded by L by the production function (the higher L, the higher the).
Figure: The relationship between YS and P
Between points A and B prices are constant and firms produce an amount exactly equal to aggregate demand. Here reversed Say's Law and IS-LM model apply. In this interval, AS-AD model is redundant. Between points B and C we have a positive relation between P and YS. Neither reversed Say's Law nor IS-LM model apply.
It is, though, unreasonable to believe that there would be a 'sharp edge' in the relationship between L and P and between YS and P in real economy. Schedules are drawn this way to simplify the explanation. A more reasonable assumption would be that relationships are smooth curves.
Figure: More realistic relationships between L and P and between YS and P
what is economic integration
I will need to upload a file as the questions are bit too long to type
what happened to the equilibrium price level in Japan during the early 2000s? How did Japan''s equilibrium price level adjust between the middle of 2008 and early 2010?
A telemarketer makes six phone calls per hour and is able to make a sale on 30 percent of these contacts. During the next two hours, find: A) The probability of making exactly four
Consider an economy with the following characteristics: i. The price-level is fixed ii. The economy is closed (Exports - Imports = 0) iii. Government spending (G) and Inve
Explain which of the two strategies is most likely to lead to development. Empirically, it seems rather evident that export-orientation has been more successful than import-sub
Have the micro-finance institutions failed in their objectives?
Each Home Depot store must decide how much paint to order each month. From historical records, they know that the amount of paint they sell during May is distributed as follows: th
discuss the action the procurement function should take to achieve raw materials at economic cost durin inflation
ACCOUNTING SYSTEM-EXAMPLE III Now suppose the Jam Co. manufactures some herbal chemicals and flavors which it sells partly to Extracts Co., partly to Bottling Co., some are co
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd