Question

Suppose that the election of a popular presidential candidate suddenly
increases people’s confidence in the future. Use the model of aggregate
demand and aggregate supply to analyze the effect on the economy.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Economics

Aggregate Supply

Aggregate Demand

Related Economics Q&A

Find answers to questions asked by students like you.

Q: Compare the classical economic theory that was used prior to the Great Depression to the Keynesian t...

A: The two important schools of thought in economics are based on the following two theories - Classic...

Q: Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000...

A: Accounting profit is a profit which simply subtracts the explicit costs from the total revenue. The ...

Q: Which of the following alternatives would you choose, assuming an interest rate of 9% compounded ann...

A: The best alternative is one that has a higher present value as of today. Alternative 1: Receive $150...

Q: Explain why implementation lag for fiscal policy is longer than monetary policy.

A: Fiscal Policy Monetary Policy The fiscal policy is the use of government revenue (taxes or tax cu...

Q: Google search images and find the graphs for a monopoly and a regulated natural monopoly. The avera...

A: The diagram shows the monopoly with the price at the vertical line and the quantity at the horizonta...

Q: You would like to buy carcar t is currently on themarket at $85,000, but you cannot afford it right ...

A: Click to see the answer

Q: True/False/uncertain

A: For example, suppose that is a negative production externality in the economy.  To solve the problem...

Q: Individual versus social costs and benefits

A: 3. According to the scenario, the society is earning benefit as a whole when providing private benef...

Q: The process of collecting and assessing market based information on the external factors that impact...

A: Environmental scanning is an organizational method used to track their external and internal environ...

Q: If nominal GNP through expenditure approach is $21100 and real GNP is $20000 then calaculca the GNP ...

A: Given Nominal GNP = $21100 Real GNP = $20000

Q: 1. What is the role of the Council Economic Advisers (CEA) as it relates to the effectiveness of the...

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new que...

Q: Does the presence of online auction sites, such as eBay, make it easier or harder for traditional re...

A: Online auction sites make it easier for consumers to buy more than their necessities. And the remain...

Q: QUESTIONS are based on Carl's Jr case study article 1. Discuss what are potential sources of competi...

A: 1. Potential sources of competitive advantage for a company can be its products for example Carl's w...

Q: Define the term Economic Equivalence?

A: Economic engineers have an important role in determining the profitability of alternative projects t...

Q: Why is capital flight a problem in most developing countries and what can be done to mitigate it?

A:   To Find: Capital Flight problems in most countries How to control Capital Flight Meaning of Capi...

Q: Suppose that government levies a payroll tax on employers and employees to finance employment insura...

A: A payroll tax is a financial charge levied by the government on employers or employees in the labor ...

Q: You are the manager of a firm that receives revenues of $60,000 per year from product X and $100,000...

A: It is given that the revenue from good X is $60,000 and that from good Y is $100,000. The price elas...

Q: A. You have the following details: • The price of commodity: X is $2 • The price of commodity: Y is ...

A: Click to see the answer

Q: Describe the Deflation method?

A: Deflation refers to the decline in the prices of goods and services during a specified period of tim...

Q: If a government gains from unexpected inflation when it borrows, why would it choose tooffer indexed...

A: Inflation-indexed bonds are a type of financial instrument that attempts to protect the bonds’ purch...

Q: The following matrix represents a possible outcome of a two-factor experiment:   No Treatment ...

A: Option D (There is a main effect of treatment, no main effect of gender, and interaction) is the cor...

Q: True/False/Uncertain

A: First: Meaning of Fiscal policy- The Fiscal Policy refers to the variations in taxation and public e...

Q: Summarize the general framework for benefit-cost analysis?

A: A cost benefit analysis compares the estimated costs and the estimated benefits of any project to de...

Q: Price elasticity of demand is an essential tool to measure the responsiveness of quantity demanded a...

A: Price elasticity of demand refers to that economic measure that calculates the percentage change in ...

Q: Please anwers the d. A semiconductor is a key component in your laptop, cell phone, and iPod. The ta...

A: (d)  Domestic currency undergoes an appreciation when its value increases in comparison to the forei...

Q: Explain with the help of Graphs of Total Product (TP) and Marginal product (MP) the three laws of va...

A: The law of variable proportions says that as we increase the variable input, the total output first ...

Q: Q2) The two projects as part of oil industrial their cash flows in tables belwo: project B: r=8% cas...

A: Hey, Thankyou for the question, Since you have posted multiple sub parts so as per our norms we will...

Q: Which substitute we may use if future prices are not expected to follow thegeneral inflation rate?

A: Future price refers to the future value of the same commodity at some set future date.  The general ...

Q: Q2) Write down short note about the circular flow of national income.

A: Circular flow of income is identified as the cycle of a generation of income that is found within th...

Q: Suppose real GDP is $5,042 billion, taxes collected by the government are $534 billion, government s...

A: The policy of the government regarding taxation and government expenditure is known as the fiscal po...

Q: Question1.A.write the short nots under each statement:                             1-  Most national...

A: 1. Most national governments economic objectives for their national economies are :  Stable prices ...

Q: Is it possible that in the economy some economic entities benefit from inflation?

A: The general increase in price of goods and services in a particular period of time is known as infla...

Q: Suppose real GDP is $5,136 billion, taxes collected by the government are $535 billion, government s...

A: The savings refers to as the level of amount remaining after all the consumption expenditure deducte...

Q: The final output for a product is comprised of one unit of input from both a wholesaler and a retail...

A: Given: There is only one wholesaler but there are two retailers. The wholesaler has a marginal cost ...

Q: What are problems that governments may encounter in enacting and applying fiscal policy? Explain the...

A: Fiscal policy is tools available to government to counter the economic imbalances, using an expansio...

Q: Second wave of Coronavirus infection has a potential effect on GDP growth. The government tries to u...

A: Answer: To find:  Whether an expansionary monetary policy can lower the natural rate of unemployment...

Q: 2. What would be the impact of changing the determinant variables given in the first column (below) ...

A: Investment refers to the process of acquiring an asset or a process with the objective of generating...

Q: Question 3 While charging a normal admission fee for adults most days of the week, local cinema offe...

A: Price discrimination is a condition where the seller offers different prices of the same good to the...

Q: 6. Use the following table to answer these questions:                                   Y           ...

A:   In the given table, the value of import is not given to calculate the marginal propensity to consu...

Q: In the market for millet, the demand curveisQ=50-3P and the supply curve is Q=2P. The government dec...

A: Equate market demand and supply equation to get the value of equilibrium price and quantity and this...

Q: Explain why externalities pose a problem for the utilitarian/invisible hand argument in favor of fre...

A: The Invisible hand argument by Adam Smith Suggests that the consumers as well as the firms will foll...

Q: Define the term weighted-average cost of capital?

A: The weighted average cost of capital shows the calculation of a firm's cost of capital, where each c...

Q: Discuss how the five foundations of economics are related to the concept of rational economic behavi...

A: The five foundations of economics are the following: 1) Incentives- These are the reasons driving pe...

Q: (Business Behavior and Public Policy) Define market power, and then discuss the rationale for govern...

A: The market power refers to the firms and organizations to have an influence on the price levels and ...

Q: A snow cone machine at an ice cream shop costs $15,000. The machine is expected to generate profits ...

A: The cost of the snow cone machine = $15000 The annual profit generated by machine (annuity, A) = $25...

Q: What is the theory of comparative advantage?

A: The theory of absolute advantage was developed by Adam Smith. However, after Adam Smith developed th...

Q: Is the minimum wage a good policy? Should the government increase the minimum wage or maintain it at...

A: A minimum wage is a natural price-floor. A minimum wage is effective when the legal wage is set abov...

Q: Suppose that a borrower and a lender agree on the nominal interest rate to be paid on a loan. Then i...

A: The real interest rate on this loan will be lower because if the inflation is more than expected the...

Q: From the table; a) . Calculate nominal GDP in 2017, 2018 and 2019 b) .Using 2017 as the base year, c...

A: Answer: Explanation of required concepts: Nominal GDP= nominal GDP refers to the value of all the go...

Q: the supply curve for product x is given by QxS= -340 + 10Px a. find the inverse supply curve P=     ...

A: Click to see the answer