the short run and long-run effects of an IS curve? need a detailed answer, please
ANSWER:
The main component of economic growth is investment and saving (IS curve). In the short run when the interest rate declines, investment demand increases, and this increase results to a multiplier effect on consumption. Consequently raises the capital stock and thus raises the full-employment national income and product. However in the long run neither fiscal or monetary policy affects there is no impact on real variables. As in in the long run, there is no impact on real variables thus as a result higher saving and investment has no effect on the rate of growth in the long run.
the short run and long-run effects of an IS curve? need a detailed answer, please
NEED detailed explanations for short-run and long-run equilibrium. For each of the following scenarios, describe the effect on the AD curve, the SRAS curve, and the LRAS curve. Identify whether the effect causes a shift of the curve or a movement along the curve and identify the direction of the shift or the movement. Answer these questions on your assignment paper. a. An increase in the money supply causes interest rates to fall. b. The price of commodities (production inputs)...
6. Short-run and long-run effects of a shift in demandSuppose that the tuna industry is in long-run equilibrium at a price of $ 5 per can of tuna and a quantity of 500 million cans per year. Suppose that WebMD claims that the bacteria found in tuna will decrease your expected lifespan by 2 years.WebMD's claim will cause consumers to demand _______ tuna at every price. In the short run, firms will respond by _______ Shift the demand curve, the supply...
7. Short-run and long-run effects of a shift in demand Suppose that the shrimp industry is in long-run equilibrium at a price of $5 per pound of shrimp and a quantity of 400 million pounds per year. Suppose that WebMD claims that a protein found in shrimp will increase your expected lifespan by 2 years. WebMD's claim will cause consumers to demand _______ shrimp at every price. In the short run, firms will respond by _______ .Shift the demand curve, the supply...
Suppose that the tuna industry is in long-run equilibrium at a price of $ 5 per can of tuna and a quantity of 200 million cans per year. Suppose that WebMD claims that the bacteria found in tuna will decrease your expected life span by 5 years.WebMD's claim will cause consumers to demand _______ tuna at every price. In the short run, firms will respond by _______ .On the graph below, shift the demand curve, the supply curve, or both...
8. Short-run and long-run effects of a shift in demandSuppose that the chicken industry is in long-run equilibrium at a price of $ 5 per pound of chicken and a quantity of 50 million pounds per year. Suppose that WebMD claims that the bacteria found in chicken will decrease your expected lifespan by 3 years.WebMD's claim will cause consumers to demand _______ chicken at every price. In the short run, firms will respond by _______.Shift the demand curve, the supply...
7. Short-run and long-run effects of a shift in demandSuppose that the turkey industry is in long-run equilibrium at a price of $ 5 per pound of turkey and a quantity of 350 million pounds per year. Suppose that WebMD claims that a protein found in turkey will increase your expected lifespan by 5 years.WebMD's claim will cause consumers to demand _______ turkey at every price. In the short run, firms will respond by _______ .Shift the demand curve, the...
Plese help ASAP Thank you in Advance!8. Short-run and long-run effects of a shift in demandSuppose that the turkey industry is in long-run equilibrium at a price of $5 per pound of turkey and a quantity of 250 million pounds per year. Suppose the Surgeon General issues a report saying that eating turkey is good for your health.The Surgeon General’s report will cause consumers to demand turkey at every price. In the short run, firms will respond by .Shift the demand...
18 . Short-run and long-run effects of a shift in demandSuppose that the shrimp industry is in long-run equilibrium at a price of $5 per pound of shrimp and a quantity of 150 million pounds per year. Suppose that the Centers for Disease Control (CDC) announces that a chemical found in shrimp is causing bacterial infections to spread around the world.The CDC's announcement will cause consumers to demand _______ shrimp at every price. In the short run, firms will respond...
Short-run and long-run effects of a shift in demand Dismiss All Please Wait . . . Please Wait... Suppose that the chicken industry is in long-run equilibrium at a price of $5 per pound of chicken and a quantity of 150 million pounds per year. Suppose that the Centers for Disease Control (CDC) announces that a chemical found in chicken is causing bacterial infections to spread around the world. The CDC’s announcement will cause consumers to demand selector 1 ...
Need detailed explanations for short-run
and long-run equilibrium.
3. For each of the following scenarios, describe the effect on the AD curve, the SRAS curve, and the LRAS curve. Identify whether the effect causes a shift of the curve or a movement along the curve and identify the direction of the shift or the movement. Answer these questions on your assignment paper. a. An increase in the money supply causes interest rates to fall. b. The price of commodities (production...