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!
Q. Explain function of AS-AD model?
The function of AS-AD model is to extend IS-LM model so that we can analyze situations where Y > YOPT. To achieve this, we should make P endogenous in the AS-AD model. When P is endogenous as well as allowed to vary, real wage W/P may vary even if nominal wage W is fixed. AS-AD model, hence, maintains assumption of fixed and exogenous nominal wages W. This is consistent with 'The General Theory of Employment, Interest and Money' by John Maynard Keynes in that he quite vigorously argue that 'wages tend to be sticky in terms of money'whereas real wages won't be as stable.
When P is allowed to increase, real wage W/P may fall and with a lower real wage, labor demand would increase and so will GDP (as long as there is adequate demand). By making P endogenous, we can allow for Y to be greater than YOPT.
Upon taking his first job at college your Dad earns an annual salary of $38,000 and set a goal to earn $10000 per year. If his salary increases at an average annual rate of 12% how
A study by the Information Technology department at WPU revealed company employees receive an average of four e-mails per hour. Assume the arrival of these e-mails is approximated
Suppose a new production method will be implemented if a hypothesis test supports the conclusion that the new method reduces the mean operating cost per hour. a. State the appro
A government purchase real GDP. Are increases in government purchases associated with increases in real GDP?Describe the important characteristics of perfect competition and monopo
The figure below defines an economy's aggregate demand curve and its short-runand long-run aggregate supply curves (labelled AD, SRAS, and LRAS, respectively). practically,the econ
distinguish between state and dynamic multiplier and illusrate balanc budget theorm in hindi
Question 1 Discuss the relationship between microeconomics and macroeconomics Question 2 What do you understand production method? What precaution should be taken while
In 2009, ABC Company made $2M of net profit and spent $100,000 on advertisement. In 2010, it made $2.5M of net profit and spent $150,000 of advertisement. Based on this information
Which of the following statements BEST describes the Metzler paradox? a. Tariffs improve the imposing nation's terms of trade. b. Export subsidies hinder the imposing nation's term
Q. Describe the Keynes motivation? Keynes' motivation: In good times, when Y is high (above its trend), national income is high (above it trend). Consumers will take this opp
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