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
Remember that labor demand provides us profit-maximizing quantity of L for a given real wage. If W/P is given (as it's in cross model), we can find profit-maximizing quantity of L from the graph. We signify this by LOPT. If firms use LOPT amount of labor, they would produce YOPT = f (LOPT, K) where f is production function and K amount of capital (exogenous).
Figure: Profit-maximizing quantity of L and Y
A significant assumption in cross model is that YOPT is always larger than YD -aggregate demand isn't enough for the amount that firms would like to supply at given real wage. This assumption has a very significant consequence. Albeit producing YOPT would maximize profits, firms won't produce this level because of the lack of demand. They will only produce YD and we see why it's aggregate demand that is significant in the cross model. Again, note how Keynesian cross model works with quantity adjustments in place of price adjustments as in the classical model. We signify the level of output produced by firms by Y*.
An increase in growth rates will cause the production possibilities curve to a. shift inward. b. become steeper. c. become flatter. d. shift outward.
Usually the government is very good at wasting money and resources so less spending, by the government helps the economy as those resources are allocated in areas that are more wel
Q. Money market in the AS-AD model? goods and the money market in the AS-AD model We begin by studying goods market and money market when prices are no longer constant. Fi
discus the various measures that may be taken by a firm to counteract the evil effect of a trade cycle
the central economic problem facing the group of survivors
Explain why we cannot measure the national product simply by adding up the production of all firms. Why do the economists use real GDP rather than nominal GDP to gauge economic
Given the following: Airbus Boeing Demand P = 182.868 - 0.0003Q P = 198.6592 - 0.00013Q TVC Curve TVC = 104.8822Q - 0.001Q^2 + 0.09Q^3 TVC = 25.8678Q - 0.00023Q^2 + 0.4Q^3 In
factor for long run trend of term of trade
what is economic integration
When a hurricane or flood or a pandemic strikes a country, who is most likely to respond first?
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: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd