write down the slolow equation and explain what happens in the short and long run if...
write down the slolow equation and explain what happens in the short and long run if the saving rate increases?
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write down the slolow equation and explain what happens in the
short and long run if...
For each of the following events, explain the short-run and long-run effects on output and the...
For each of the following events, explain the short-run and long-run effects on output and the price level, assuming policymakers take no action. Answer the questions using sticky-wage theory. a) The stock market declines sharply, reducing consumer’s wealth. b) Now suppose that a stock market crash causes aggregate demand to fall. Use your diagram to show what happens to output and the price level in the short run. What happens to the unemployment rate? c) A recessions overseas causes foreigners...
28. Refer to Figure 14-13. If the price is $2 in the short run, what will happen in the long run? a. Individual f...
28. Refer to Figure 14-13. If the price is $2 in the short run, what will happen in the long run? a. Individual firms will earn positive economic profits in the short run, which will entice other firms to enter the industry b. Individual firms will earn negative economic profits in the short run, which will cause some firms to exit the industry. c. Because the price is below the firm's average variable costs, the firms will shut down. d....
According to the IS-LM model, what happens in the short run to the interest rate, income,...
According to the IS-LM model, what happens in the short run to the interest rate, income, consumption, and investment under the following circumstances? a. The central bank increases the money supply. b. The government increases government purchases. c. The government increases taxes. d. The government increases government purchases and taxes by equal amounts.
Explain how PPP in the long run combined with UIP in the short run provides a...
Explain how PPP in the long run combined with UIP in the short run provides a complete model for determining the spot exchange rate for a currency. Be specific in showing what variables are determined in the long run, how those variables are determined, and how the long run variables factor into the UIP short run model to determine the spot exchange rate.
2 As labor increases in the short run what happens to the marginal productivity of labor?
2 As labor increases in the short run what happens to the marginal productivity of labor?
According to the IS-LM model, what happens in the short run to the interest rate, income,...
According to the IS-LM model, what happens in the short run to the interest rate, income, consumption, and investment under the following circumstances? Be sure your answer includes an appropriate graph. The government increases taxes. ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ The price level decreases. ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ The central bank increases the money supply. ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ The government decreases government purchases. ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Define short run and long run in microeconomics. Explain how short-run and long-run average total costs...
Define short run and long run in microeconomics. Explain how short-run and long-run average total costs (ATC) differ.
Explain what happens to the inflation, unemployment, and output gap in the short run in each...
Explain what happens to the inflation, unemployment, and output gap in the short run in each of the following circumstances. do not need to graph but explain which part of IS/MP/PC is affected and why. 1.There is deep recession in China. 2.The stock market crashes and causes consumers to lose confidence in the economy.
The smartphone market is in long-run equilibrium. Then the demand for smartphones increases. Describe what happens...
The smartphone market is in long-run equilibrium. Then the demand for smartphones increases. Describe what happens in the market for smartphones. In the short-run firms will ___ A. make an economic profit B. incur and economic loss C. continue to break even Some firms will ___ the market, and the market supply curve will shift __. A. exit; rightward B. enter; leftward C. enter; rightward D. exit; leftward
What is the shape of the AS in the short run and the long run? a....
What is the shape of the AS in the short run and the long run? a. AS is relatively flat in the short run, but steeper in the long run. b. AS is relatively steep in the short run, but flatter in the long run. c. AS is relatively steep in both the short and long run. d. AS is relatively flat in both the short and long run
28. Refer to Figure 14-13. If the price is $2 in the short run, what will happen in the long run? a. Individual firms will earn positive economic profits in the short run, which will entice other firms to enter the industry b. Individual firms will earn negative economic profits in the short run, which will cause some firms to exit the industry. c. Because the price is below the firm's average variable costs, the firms will shut down. d....
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