Question on hypothetical economy
Consider that aggregate demand and the short run supply for any hypothetical economy are as : Why will a price level of 150 not be an equilibrium price level in this economy? Why not 250?
Consider that aggregate demand and the short run supply for any hypothetical economy are as :
Why will a price level of 150 not be an equilibrium price level in this economy? Why not 250?
Expert
At price level of 150, real GDP supplied maximum is $200 billion, less than the real GDP demanded of $400 billion. The shortage of real output will drive the price level up. At price level of 250, real GDP supplied is $400 billion that is more than the real GDP demanded of $200 billion. The surplus of real output will drive down the price level. Equilibrium takes place at the price level at which AS & AD intersect.
Normal 0 false false
How are financial trades made on a planned exchange?Each of exchange listed security is traded at a particulate location on the trading floor called the post. The trading is supervised through specialists who act either as brokers (bringing toge
Describe advantages and disadvantages of the internal rate of return method? The internal rate of return method is discounted cash flow method and number expressed like a percentage. Typically these are seen as advantages. The main disadvantag
Describe "free cash flows?" It represents the total cash flows from business operations which are obtainable to be distributed to the suppliers of a firm's capital each year either within the form of interest to the debt holders, or dividends to
Describe some factors which common stockholders consider while deciding how much, if any, cash dividends they want from the corporation wherein they have invested? Common stockholders would assume the company's investment opportunity, their requ
Why do overall assets equal the sum of total liabilities and equity? Describe. Assets = Liabilities + EquityAssets are the items of value business owns. Liabilities ar
What influence have mergers had on fees assessed for retail bank services? The effect is not clear. Market conditions and the level of competition often determine the cost for retail bank services.
Schedule 7A: The summary version of the State Controller’s Office detailed Schedule 8 position register for each department. The information replicated in this schedule is the base for the “Salaries and Wages Supplement” exhibited on
18,76,764
1946208 Asked
3,689
Active Tutors
1426766
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!