Macroeconomics- AD and AS curve?
Use shifts of the AD and AS curves to explain A) the U.S experience of strong economic growth , full employment, and price stability in the late 1990's nad early 2000s and B) how a strong negative wealth effect from, say, a preciptious drop in the stock market could cause a recession even though productivity is surging.
Macroeconomics Question?
d) positive supply shock that shifts SRAS to the right. lower business taxes reduce input costs because the inputs that a business needs would be theoretically cheaper because the businesses that a business buys its inputs from would have their costs lowered since consumption taxes have been lowered, lower input costs = lower marginal costs which would mean that businesses are willing to provide more goods at lower prices shifting the short run aggregate supply curve to the right. lower business taxes would also increase demand because businesses would have more disposable income which theoretically they would invest (increased investments increase AD) to take advantage of higher demands for other products and services or of the same products and services (perhaps investing in a machine that would lower unit costs to take advantage of higher demands at lower price points). Therefore it would also be: b) positive demand shock that shifts AD to the right.
Question about Macroeconomics.?
Assume the economy appears to be slowing and fears of recession are on the rise. Starting with the money market diagram, with words and diagrams (including the aforementioned MMD, the investment demand, and AS/AD diagrams), work through the (monetary) transmission mechanism, given the appropriate type of monetary policy. -Please help answering this question. Thank you in advance-
Macroeconomics Question?
If producer confidence in the economy increases, economists would say that this is a a) positive demand shock that shifts AD to the left. b) positive demand shock that shifts SRAS to the left. c) positive demand shock that shifts AD to the right. d) positive supply shock that shifts AD to the right. e) positive supply shock that shifts SRAS to the left. Thanks!
I need help with macroeconomics AD-AS model.?
Question In the lecture on the AD-AS model we derived the aggregate demand curve (the negative relationship between Y and P) from the reduced-form of the IS-LM model. Alternatively, one could use the quantity theory of money according to which M x V = P x T; where M is the stock of money, V is the velocity of money (the number of times money changes hands within a period), P is the price level and T is the volume of transactions. For simplicity replace the volume of transactions, T, by output, Y . We now obtain a simple equation for aggregate demand (AD): M x V = P x Y (1) (i) Represent the aggregate demand curve given by (1). How does an increase in the money supply shift the AD curve? (ii) Let (Y bar) denote the natural level of output. Find the expression for the price level in the long run. How does an increase in the stock of money affect output and prices in the long run? (iii) Suppose that the natural level of output increases over time. What is the policy that keeps the price level constant?
AP Macroeconomics help, please?
For the question below, write an explanation of the short-run effect including the determinant of AD or AS that is causing the shift, the line that shifts (AD or AS), the direction of the shift (left or right), and the impact on output and price level (increase or decrease) and submit a properly drawn and labeled aggregate demand and aggregate supply graph for the scenario. Make sure your name and assignment number are written on each page of graphs you submit. All text must be written in the text box provided. Tourists flock to visit the major theme park's in Orlando, Florida. Can you please also explain what the graphs look like and why? I'm confused as to how the whole AD/AS thing works when it comes to graphing. Thanks in advance!
AP MACROECONOMICS HELP PLEASE PLEASE PLEASE AD/AS?
1. Assume Congress passes a law requiring anti-pollution devices be installed at every stage of the production process for goods made in the United States. a) Using a correctly drawn AD/AS graph, explain the short-run impact of these new regulations on each of the following for the United States. Output Price Level b) How would borrowers be impacted by the economic change brought about as a result of the regulations? Are they helped or hurt? hint: Recall that “how” means “how and why.”
ECON - AD SRAS Question?
Consider an economy with the following aggregate demand (AD) and short-run aggregate supply (SRAS) schedules. Decision-makers have previously made decisions anticipating that the price level during the current period will be P105. a. Indicate the quantity of GDP that will be produced during the period. b. Is it a long-run equilibrium level of GDP? Why or why not? c. How will the unemployment rate during the current period compare with the natural rate of unemployment? d. Will the current rate of GDP be sustainable into the future? Why or why not? AD 105 Price Level SRAS 105 6300 90 4500 6000 95 4800 5700 100 5100 5400 105 5400 5100 110 5700 4800 115 6000 I am not sure where to begin, I don't really just want to know the answers, I just want to know how to figure this out. Can someone help me understand how to analyze this?
What are some examples of macroeconomics and microeconomics?
Microeconomics is the study of the behaviour of the individual units (like an individual firm or an individual consumer) of the economy.According to these units, we may see these examples:Firms:Demand and Supply of commodities & determination of price by a firmStudy of costs of producing a good by a firmStudy of revenue of a firmDetermining producer's equilibrium (cost & revenue)Consumers:Utility of a consumer : satisfaction from consumptionConsumer's EquilibriumNow, Macroeconomics studies the behaviour of aggregates of the economy as a whole, ie it deals with the problems faced by the economy as a whole, and not just by an individual unit.Calculation of National Income : GDP, NNP, GNP, GDP PPP etc. Because it includes income of all the residents of a country, not just one individual.Determination of equilibrium level of output and employment :Aggregate Demand and Aggregate Supply analysis.Inflation, deflation and controlling the situationEmployment and unemploymentMonetary Policy :Money supplyInterest ratesFiscal PolicyGovernment budget : expenditure and income.Taxes and subsidies.Balance of Payment situation.Factors that affect u individually are studied in Microeconomics and factors that generally affect everyone in the economy are studied under Macroeconomics.