We often use the SRAS/AD model to describe which of the following? short run economic fluctuations long run economic trends the effect of changes in the money supply on the interest rate the trade balance
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We often use the SRAS/AD model to describe which of the following?
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short run economic fluctuations |
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long run economic trends |
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the effect of changes in the money supply on the interest rate |
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the trade balance |
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- What is the Keynesian zone of the SRAS curve? How much is the price level likely to change in the Keynesian zone?Elaborate on the impact of a central bank's reduction in interest rates using the AD-AS model.Assume that the general level of prices increases. Which of the following best describes what happens to the money market, AE model and AD curve?
- Why does interest rate links the two halves of the IS-LM model together?What is the reason behind why the SRAS curve is upward sloping? There are few unutilised resources Higher price level means higher nominal wages Higher price level means higher real wages Lower price level will increase profit Nominal wages and input costs are sticky in the short runConsider a standard AD-AS model. If the SRAS curve is steep, a temporary tax cut leads to a relatively small increase in inflation and relatively large decrease in unemployment.Answer true, false, or uncertain. Please briefly explain your answer.
- Using the AD/AS model, show how fear of a recession is expected to affect an economy experiencing too much inflationThe Keynesian view of the AD/AS model states that when beginning from potential output equilibrium, any decrease in AD will : Group of answer choices a Decrease real output and decrease prices b Decrease real output and increase prices c Decrease real output and do not affect prices d Increase real output and decrease pricesDemand Planning - Which of the following is an example of a macro forecast intelligence? Change in gas prices. New competitor entering the market Company will start selling overseas. All of the above