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Social Science1-What is the general relationship between a country's price level and the quantitiy of it's domestic output (Real GDP) demanded? Who are the buyers of real US GDP?2- what assumptions cause the immediate -short-run aggregate supply curve to be horizontal? why is the long-run aggregate supply curve vertical? Explain the shape of the short-run aggregate supply curve . Why is the short-run curve relatively flat to the left of the full employment output and relatively steep to the right ?3- why does a reduction in aggregate demand tend to reduce real output, rather than the price level?4- Explain" unemployment can be caused by a decrease of aggregate demand or a decrease of aggregate supply ."In each case , specify the price level outcomes .5- In early 2001 investment spending declined in the USA. In the 2 months follwing september , 11 2001 attacks on the US, consumption also declined . Use Ad-AS analysis to show the two impacts on Real GDP.6- Using the concept of the multiplier , explain why mass layoffs by large companies like Boeing ,or General motors are a concern to the citizens and leaders where those firms are located .
1-What is the general relationship between a country's price level and the quantitiy of it's domestic output (Real GDP) demanded? Who are the buyers of real US GDP?
2- what assumptions cause the immediate -short-run aggregate supply curve to be horizontal? why is the long-run aggregate supply curve vertical? Explain the shape of the short-run aggregate supply curve . Why is the short-run curve relatively flat to the left of the full employment output and relatively steep to the right ?
3- why does a reduction in aggregate demand tend to reduce real output, rather than the price level?
4- Explain" unemployment can be caused by a decrease of aggregate demand or a decrease of aggregate supply ."In each case , specify the price level outcomes .
5- In early 2001 investment spending declined in the USA. In the 2 months follwing september , 11 2001 attacks on the US, consumption also declined . Use Ad-AS analysis to show the two impacts on Real GDP.
6- Using the concept of the multiplier , explain why mass layoffs by large companies like Boeing ,or General motors are a concern to the citizens and leaders where those firms are located .
Expert Answer
1-What is the general relationship between a country's price level and the quantitiy of it's domestic output (Real GDP) demanded? Who are the buyers of real US GDP?
To understand the general relationship between a country's price level and the quantity of it's domest output demanded, we see that when there is a fall in the general price level, there is an increase in the quantity of its domestic output demanded.
The citizens are the buyers of real US GDP.
What assumptions cause the immediate -short-run aggregate supply curve to be horizontal? why is the long-run aggregate supply curve vertical? Explain the shape of the short-run aggregate supply curve . Why is the short-run curve relatively flat to the left of the full employment output and relatively steep to the right ?
Any excess increase in supply or change in technology will lead ...
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