CPI is part of AS/AD model – explain.
CPI is part of AS/AD model – explain.
Homework Answers
It can be mentioned that there are two types of inflation, demand pull and cost push inflation. If there is a demand pull inflation then the AD curve shift right as a result of which the prices increase the price level increases and if the price level increases CPI increases and similarly in cost push inflation the cost of producing goods increase with which the supply decreases with which the AS curve shift to the left and with this proce increases and as the price level increases CPI increases. In this way AS AD is related to CPI.
Explain fully how the as/ad model is related to the keynesian model and how it is...
Explain fully how the as/ad model is related to the keynesian model and how it is different?
Explain fully how the as/ad model is related to the keynesian model and how it is different?
Explain fully how the as/ad model is related to the keynesian model and how it is different?
We examined the Keynesian model in class. Using the AS/AD model, explain how the economy would...
We examined the Keynesian model in class. Using the AS/AD model, explain how the economy would recover from a recession.
Por CPI LRAS, SRAS, AD AD, AD Y, Үр Ү, Yor Real GDP Suppose the economy...
Por CPI LRAS, SRAS, AD AD, AD Y, Үр Ү, Yor Real GDP Suppose the economy is producing the output level Yp, and a positive demand shock shifts the AD, curve to AD2. The economy now has __ A. a recessionary gap and expansionary fiscal policy can close the gap. B. an inflationary gap and expansionary fiscal policy can close the gap. C. a recessionary gap and contractionary fiscal policy can close the gap. D. an inflationary gap and contractionary...
39. Illustrate (by using an AD-AS model) and explain a situation in which an expansionary fiscal...
39. Illustrate (by using an AD-AS model) and explain a situation in which an expansionary fiscal policy (increase in G) only produces inflation
Por CPI LRAS, SRAS, Ez AD AD AD, Y, YP Y, Yor Real GDP Which one...
Por CPI LRAS, SRAS, Ez AD AD AD, Y, YP Y, Yor Real GDP Which one of the following statements is correct? A At Ep. the economy is in short-run macroeconomic equilibrium, and the actual U-rate is not equal to the natural rate of unemployment B. At E1, the economy is in long-run macroeconomic equilibrium, and the actual U-rate is equal to the natural rate of unemployment C. At E2, the economy is in short-run macroeconomic equilibrium, and the actual...
(Figure: AD– AS Model II) Refer to Figure: AD– AS Model II. If the value of...
(Figure: AD– AS Model II) Refer to Figure:
AD– AS Model II. If the value of household wealth
increases, the _____ curve will shift to the _____.
A.
SRAS; right
B.
SRAS; left
C.
AD; left
D.
AD; right
Aggregate price level LRAS SRAS1 E1 P1 AD1 Y, = potential output Real GDP
Use AD-AS model show effects of negative demand shock and explain how the classic economic theory...
Use AD-AS model show effects of negative demand shock and explain how the classic economic theory will do about it.
Use the dynamic AD-AS model to explain circumstances by which productivity and technological changes can lead...
Use the dynamic AD-AS model to explain circumstances by which productivity and technological changes can lead to an increase in unemployment. Discuss what happens to the price level depending on the assumptions you make.
1. An introduction to the AD-AS model The AD-AS (aggregate demand and aggregate supply) model is...
1. An introduction to the AD-AS model The AD-AS (aggregate demand and aggregate supply) model is a useful simplification of the macroeconomy. The horizontal axis of a diagram of the AD and AS curves measures which of the following? The price of one particular representative good produced in the economy The amount of one particular representative good produced in the economy An economy's price level An economy's aggregate output The vertical axis of a diagram of the AD and AS...
Por CPI LRAS, SRAS, AD AD, AD Y, Үр Ү, Yor Real GDP Suppose the economy is producing the output level Yp, and a positive demand shock shifts the AD, curve to AD2. The economy now has __ A. a recessionary gap and expansionary fiscal policy can close the gap. B. an inflationary gap and expansionary fiscal policy can close the gap. C. a recessionary gap and contractionary fiscal policy can close the gap. D. an inflationary gap and contractionary...
Por CPI LRAS, SRAS, Ez AD AD AD, Y, YP Y, Yor Real GDP Which one of the following statements is correct? A At Ep. the economy is in short-run macroeconomic equilibrium, and the actual U-rate is not equal to the natural rate of unemployment B. At E1, the economy is in long-run macroeconomic equilibrium, and the actual U-rate is equal to the natural rate of unemployment C. At E2, the economy is in short-run macroeconomic equilibrium, and the actual...
(Figure: AD– AS Model II) Refer to Figure:
AD– AS Model II. If the value of household wealth
increases, the _____ curve will shift to the _____.
A.
SRAS; right
B.
SRAS; left
C.
AD; left
D.
AD; right
Aggregate price level LRAS SRAS1 E1 P1 AD1 Y, = potential output Real GDP
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