a/ Explain how expectation about future price and income will affect consumtion b/ Explain how expectation...
a/ Explain how expectation about future price and income will affect consumtion
b/ Explain how expectation about future sale will affect investment
c/ How will an increase in money supply affect aggregate demand
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a/ Explain how expectation about future price and income will
affect consumtion
b/ Explain how expectation...
1. Explain what will happen to the price level real GDP and the unemployment rate in...
1. Explain what will happen to the price level real GDP and the unemployment rate in the following cases: a. AD falls by the same amount that SRAS rises b. AD falls by less than SRAS rises c. AD falls by more than SRAS falls d. AD falls by the same amount that SRAS falls e. AD falls by less than SRAS falls 2. Explain how expectations about future sales will affect investment. 3. How will a change in the...
How will shift right in supply affect equilibrium price, assuming demand remains constant? a. increase b....
How will shift right in supply affect equilibrium price, assuming demand remains constant? a. increase b. decrease c.will not affect it d. cannot be determined According to the law of demand, if the price of a good decreases, its Qd? a. decreases b. increases c. goes to zero d. stays constant According to the income effect, price changes equal changes in? a. money income b.real income c.demand d. utility on the demand curve a chance in price leads a. no...
Suppose that consumer expectations about the future improve. How will this affect the aggregate demand curve?...
Suppose that consumer expectations about the future improve. How will this affect the aggregate demand curve? A. There will be a movement upward along the fixed aggregate demand curve. B. The aggregate demand curve will shift to the right. C. The aggregate demand curve will shift to the left. D. There will be a movement downward along the fixed aggregate demand curve.
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...
QUESTION 7 How will the following affect the individual demand curve for cigarettes: An expectation that...
QUESTION 7 How will the following affect the individual demand curve for cigarettes: An expectation that the price of cigarettes will increase in the future. Right shift Left shift No effect 0.3 points QUESTION 8 How will the following affect the individual demand curve for marijuana: A scientific report that marijuana causes anxiety, panic attacks, problems with memory and learning, and loss of coordination. Right shift Left shift No effect 0.3 points QUESTION 9 How will the following affect the...
A) Explain step-by-step how each of the following will affect the consumption and saving curves. Illustrate...
A) Explain step-by-step how each of the following will affect the consumption and saving curves. Illustrate your answers graphically (2 graphs for each). (3pts each) a. Consumers are afraid that prices will rise in the future. b. Income taxes are decreased. c. An increase in the price of houses and other assets. B) Explain step-by-step how each of the following will affect the demand for investment curve. Illustrate your answers graphically. (2.5pts each) a. A decrease in the real interest...
What happens when the price level rises? a. Interest rates rise, so firms increase investment. b. Interest rates...
What happens when the price level rises? a. Interest rates rise, so firms increase investment. b. Interest rates rise, so firms decrease investment. c. Interest rates fall, so firms increase investment. d. Interest rates fall, so firms decrease investment. 44. Which of the following shifts money demand to the left? a. an increase in the price level b. a decrease in the price level c. an increase in the interest rate d. a decrease in the interest rate 45. If the world real interest rate exceeds the Canadian real interest...
Suppose the US economy is at Potential GDP. Then, consumers and firms become pessimistic about future...
Suppose the US economy is at Potential GDP. Then, consumers and firms become pessimistic about future economic conditions, and consumption and investment decrease. In response to the decline in consumption and investment, the FED increases the money supply. Congress responds as well approving an increase in government spending and tax cuts. Illustrate this sequence of events using an Aggregate Demand/Aggregate Supply graph. State what happens with Real GDP, Prices, and the Unemployment rate after monetary and fiscal policies are implemented.
Briefly explain using appropriate formulas: How each of the following changes will affect the exc...
I need Number 3 answered and explained please.
Briefly explain using appropriate formulas: How each of the following changes will affect the exchange rate (dollars per euro) according to the monetary approach to exchange rates 1. a. b. c. d. The US money supply increases The EU money supply decreases The US national income increases. The EU national income decreases. How each of the following changes will affect the real exchange rate (the number of US baskets per EU basket...
Figure: The Money Supply and Aggregate Demand Panel (a) Panel (b) SRAS Price level Price level...
Figure: The Money Supply and Aggregate Demand Panel (a) Panel (b) SRAS Price level Price level SRAS Y Real GDP (per year) Y Y Real GDP (per year) Refer to Figure: The Money Supply and Aggregate Demand. If the Federal Reserve intended to encourage investment and expand the economy, it would T reasury bills, the money supply, and interest rates. This is shown in panel O buy; increase; lower; (a) buy; decrease; lower; (a) buy; increase; raise: (a) O sell;...
Suppose that consumer expectations about the future improve. How will this affect the aggregate demand curve? A. There will be a movement upward along the fixed aggregate demand curve. B. The aggregate demand curve will shift to the right. C. The aggregate demand curve will shift to the left. D. There will be a movement downward along the fixed aggregate demand curve.
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...
Suppose the US economy is at Potential GDP. Then, consumers and firms become pessimistic about future economic conditions, and consumption and investment decrease. In response to the decline in consumption and investment, the FED increases the money supply. Congress responds as well approving an increase in government spending and tax cuts. Illustrate this sequence of events using an Aggregate Demand/Aggregate Supply graph. State what happens with Real GDP, Prices, and the Unemployment rate after monetary and fiscal policies are implemented.
I need Number 3 answered and explained please.
Briefly explain using appropriate formulas: How each of the following changes will affect the exchange rate (dollars per euro) according to the monetary approach to exchange rates 1. a. b. c. d. The US money supply increases The EU money supply decreases The US national income increases. The EU national income decreases. How each of the following changes will affect the real exchange rate (the number of US baskets per EU basket...
Figure: The Money Supply and Aggregate Demand Panel (a) Panel (b) SRAS Price level Price level SRAS Y Real GDP (per year) Y Y Real GDP (per year) Refer to Figure: The Money Supply and Aggregate Demand. If the Federal Reserve intended to encourage investment and expand the economy, it would T reasury bills, the money supply, and interest rates. This is shown in panel O buy; increase; lower; (a) buy; decrease; lower; (a) buy; increase; raise: (a) O sell;...
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