3. Explain using graphs of how a productivity increase effects the supply and demand for aggregate...
3. Explain using graphs of how a productivity increase effects the supply and demand for aggregate output, and the supply and demand for labor. [hint: To do this, label all axes and graphs correctly, and show how each the supply and the demand shifts in each of the goods and labor markets].
Homework Answers
Answer :
When productivity increase then the market supply in good market increase. In the above picture's diagram in good market the supply curve shifts to rightward and becomes S2 due to increase in productivity level. As a result, the aggregate output level increase but the price level decrease.
Now due to increase in productivity level the labor demand increase. In the above picture's diagram in labor market the demand curve shifts to rightward and becomes D2. As a result, the wage rate and labor unit increase.
Add Answer to:
3. Explain using graphs of how a productivity increase effects
the supply and demand for aggregate...
1. Using aggregate supply and demand analysis, discuss how the following will affect the aggregate level...
1. Using aggregate supply and demand analysis, discuss how the following will affect the aggregate level of output and the price level in the economy. Use an SRAS curve and an AD curve. You need to determine whether the AD or SRAS curve will shift, in which direction it will shift, and how this will affect aggregate output and the price level. (8 points) a. A hurricane that destroys half the supply of goods produced in Florida. b. An increase...
Consider the IS-LM and aggregate demand/aggregate supply model of Chapters 11 and 12. Consider a reduction...
Consider the IS-LM and aggregate demand/aggregate supply model of Chapters 11 and 12. Consider a reduction in the level of taxes, starting from an initial situation in which output is equal to its natural level. a) Depict the short-run effects of the reduction in T using 3 graphs: one for the market for goods and services, one for the IS-LM curves, and one for the Aggregate Demand and Supply curves. How do the new short-run equilibrium values of r, Y...
Other things equal, an increase in productivity will: 1) reduce aggregate supply and increase real output....
Other things equal, an increase in productivity will: 1) reduce aggregate supply and increase real output. 2) reduce both the interest rate and the international value of the dollar. 3) increase both aggregate supply and real output. 4) increase net exports, increase investment, and reduce aggregate demand.
Explain the effects of a wealth tax using the Aggregate Demand and Aggregate Supply Model? How...
Explain the effects of a wealth tax using the Aggregate Demand and Aggregate Supply Model? How will the Price Level, Real GDP, and Employment be impacted in the short-run if this first most important policy decision was put into practice? How might the Price Level, Real GDP, and Employment be impacted in the long-run if this first most important policy decision was put into practice? Be detailed, specific, and clear.
Aggregate supply and aggregate demand in Lithuania were in their long run equilibrium. Then consumers decided...
Aggregate supply and aggregate demand in Lithuania were in their long run equilibrium. Then consumers decided to spend less and save more. In a well-labeled graph, show how aggregate demand, aggregate supply, and the equilibrium change in both the short and long run (6 points). Explain what happened to the economy, especially the price level and output, in the short and long run (2 points). Show (in a pair of graphs) what the central bank could do to offset the...
Aggregate supply and aggregate demand in Lithuania were in their long run equilibrium. Then consumers decided...
Aggregate supply and aggregate demand in Lithuania were in their long run equilibrium. Then consumers decided to spend less and save more. In a well-labeled graph, show how aggregate demand, aggregate supply, and the equilibrium change in both the short and long run Explain what happened to the economy, especially the price level and output, in the short and long run . Show (in a pair of graphs) what the central bank could do to offset the decrease in consumer...
“Cost-push inflation is usually referred to as supply side inflation.” Using aggregate demand and aggregate supply...
“Cost-push inflation is usually referred to as supply side inflation.” Using aggregate demand and aggregate supply model, explain and show the causes and effects of cost push inflation on price level and output in the economy.
-refully Using aggregate supply and aggregate demand curves, illustrate and summarize what impact each of the...
-refully Using aggregate supply and aggregate demand curves, illustrate and summarize what impact each of the would have on the price level and the equilibrium level of aggregate output in the short run. During a period of increasing aggregate demand, an economy experiences large gains in productivity.
Use the Aggregate Demand and Aggregate Supply model to explain the current crisis in both graphs...
Use the Aggregate Demand and Aggregate Supply model to explain the current crisis in both graphs and words. Explain only the current economic contraction without talking about the government and Federal Reserve responses. Start with thinking about how AD and/or AS would be affected by the social distancing measures which mean that people would stay home, unemployment rises, and non-essential businesses close. (200-250 words)
Define demand-pull inflation. Using the AS/AD model, explain how demand-pull inflation affects the level of aggregate...
Define demand-pull inflation. Using the AS/AD model, explain how demand-pull inflation affects the level of aggregate output and the price level in the economy (which curve shifts, in what direction, and what happens to equilibrium output and price level). Give an example of macroeconomic policy that can be used to counter the effects of demand-pull inflation and discuss its effect on the equilibrium output and price level.
1. Using aggregate supply and demand analysis, discuss how the following will affect the aggregate level of output and the price level in the economy. Use an SRAS curve and an AD curve. You need to determine whether the AD or SRAS curve will shift, in which direction it will shift, and how this will affect aggregate output and the price level. (8 points) a. A hurricane that destroys half the supply of goods produced in Florida. b. An increase...
Other things equal, an increase in productivity will: 1) reduce aggregate supply and increase real output. 2) reduce both the interest rate and the international value of the dollar. 3) increase both aggregate supply and real output. 4) increase net exports, increase investment, and reduce aggregate demand.
“Cost-push inflation is usually referred to as supply side inflation.” Using aggregate demand and aggregate supply model, explain and show the causes and effects of cost push inflation on price level and output in the economy.
-refully Using aggregate supply and aggregate demand curves, illustrate and summarize what impact each of the would have on the price level and the equilibrium level of aggregate output in the short run. During a period of increasing aggregate demand, an economy experiences large gains in productivity.
Define demand-pull inflation. Using the AS/AD model, explain how demand-pull inflation affects the level of aggregate output and the price level in the economy (which curve shifts, in what direction, and what happens to equilibrium output and price level). Give an example of macroeconomic policy that can be used to counter the effects of demand-pull inflation and discuss its effect on the equilibrium output and price level.
Most questions answered within 3 hours.
-
Write an essay containing your thoughts on
whether corporations should be limited in the amount of...
asked 9 minutes ago -
A 4.0 L flask containing chlorine gas is connected to an
evacuated 3.0 L flask. If...
asked 8 minutes ago -
Given the following two sequences x (n)=[3 , 11,7 ,0 ,−1, 4 ,2
],−3≤n≤ 3 ;...
asked 9 minutes ago -
What is the minimal sample size needed for a 95% confidence
interval to have a maximal...
asked 10 minutes ago -
1. Methods of collecting data - Experiments and direct
observation
In each of the following situations,...
asked 24 minutes ago -
Each protein is composed of a maximum of ____________ different
amino acids in varying numbers and...
asked 41 minutes ago -
One member in the comp set that did not have supply, demand, and
revenue data. What...
asked 19 minutes ago -
What is the density of a substance that takes up 3.4e3 cubic cm
and weighs 1.96...
asked 34 minutes ago -
Consider a single wire loop of radius a. Calculate the magnetic
field B(z) along the axis...
asked 30 minutes ago -
For each of the compounds listed below you must draw the Lewis
dot structure in the...
asked 33 minutes ago -
1. Hypothesize in what type of environments it would be
advantageous for a protist to be...
asked 32 minutes ago -
The mayor of a town has proposed a plan for the construction of
a new community....
asked 51 minutes ago