If aggregate output is above its equilibrium level there is an excess supply of goods O firms will tend to replenish their low inventories driving output up toward equilibrium actual output is below planned expenditure all of the none of the above
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- Assume an economy operates in the intermediaterange of its aggregate supply curve. State thedirection of shift for the aggregate demandor aggregate supply curve for each of thefollowing changes in conditions. What is theeffect on the price level? On real GDP? Onemployment?a. The price of crude oil rises significantly.b. Spending on national defense doubles.c. The costs of imported goods increase.d. An improvement in technology raises laborproductivity.3:35 PM O ll al a 59 % f H.W2.pdf Sx. The mantaly conumpthie Values for rice are Use below:- July Sept. Oct. Nov. June Aug. 28.65 7.85 13.45 21.60 24.30 14.70 Cm Cm Cm Cm Cm Determin the seasonal The consumptive use, The average montaly Consumptive use and average dzily comsumptive use, the beak monthly consumptive use.hich theory of consumption best explains the consumption behavior of consumers of our economy? Question No: 02 [Marks: 10] If the State Bank started printing large quantities of Pakistani Rupees (Rs), what would happen to the number of Pakistani Rupees a dollar could buy? Why? Question No: 03 [Marks: 10] Deseribe the difference batuuean foreian diract investmet and foraion nortfolie invastment Who is mora likelu to
- Assume an economy operates in the intermediate range of its aggregate supplycurve. For each of the following changes in conditions, state the direction of theeffect on: aggregate demand, aggregate supply, price level, real GDP.(a) A decrease in government expenditure in infrastructure(b) A severe recession occurs in a country which has been a major importer of thenation’s exports.(c) The federal government increases business taxes with diagramhow can a firm mantain a smooth production schedule even when sales are fluctuating? what are the benefits of a smooth production schedule? what are the costs?Use the Aggregate Supply and Aggregate Demand Model below to answer thequestions that follow Examine the influence of government expenditure on investment in a nation.Use Jot Inc. Ltd a multinational construction company in which you are theChief Exec of the firm that that is highly diversified and receives funds toconstruct highways and other government-funded projects. Also, explain thefactors that cause the Aggregate Demand curve to be downward sloping leftto right
- Assume an economy operates in the intermediate range of its aggregate supplycurve. For each of the following changes in conditions, state the direction of theeffect on:1. aggregate demand, 2. aggregate supply, 3. price level, and 4. real GDP. (a) An increase in government expenditure in infrastructureClick or tap here to enter text.(b) A severe recession occurs in a country, which has been a major importer of thenation’s exports.Click or tap here to enter text.(c) The federal government increases business taxesClick or tap here to enter text.(d) The Central Bank increases the cash interest rateEconomics a) Discuss the determinants of aggregate consumption and aggregate investment. Base onhistorical Australian data, which tends to fluctuate more – investment or consumption? You must also answer why it does this, Data must be sourced. (500 Word count) b) Suppose bad economic stats led investors to be more negative about futureprospects on earnings on investment projects. With the help of diagrams, review theimpact of this change on aggregate consumption and income. Word limit 600Desired Aggregte Expendture Next question Reter to the graph to the right. A fal in the domestic prnce level private sector wealth This leads to a Desired Aggregate Expenditure and the Price Level in desired consumption, and shift in the AE curve. AEY Similarty, a roe in the domestic price level makes Canadan goods more expensive, resultingi aht in the shift in the AE curve net expont function, which causes AF Use the line drawing tool to show and label the effect of a fal in the domestic price level on the AE unction Camhuly follow the instructions above, and only draw the required object Real GOP
- How do i trace this scenario on the circlar flow model, firms inventories unexpectedely rise?When comparing National with Regional Input-Output models, the issue of “leakages” often comes up. what is a “leakage? Also explain the impact that a leakage has on an economy’s multipliers and what this means for measure of economic impactsimple maoro model where the marginal propensity to consume out of disposable income is 0.8, the net tax rate is 0.25, and the marginal propensity lo import is 0.12, he simple multipler wil be OA 0.480 OB. 123 OC. 2003 OD. 1471 OE 2110