Effect on real national income
Problem: Under what circumstances would a rise in aggregate demand have little effect on real national income?
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Write a paper describing my assessment of the current aggregate demand and aggregate suppy curves; my prediction and prescription for the near future. sources must be sited.
Explain in detail why the aggregate demand curve slopes down. Specify how your explanation differs from the rationale behind the downward sloping demand curve for a single product?
(1) How would higher duty on softwood lumber affect the equilibrium income and the price level in the short run? (2) How would higher duty on softwood lumber affect the equilibrium income and the price level in the long run? What assumptions did yo
Now let the government pursue a policy of holding the money supply constant at 500, and spending G = 300. What will be the level of income and the rate of interest?
Use autonomous spending and the multiplier to calculate the equilibrium level of real GDP demanded.
Problem: Why can output rise "without inflation" in the "Keynesian" range of the aggregate supply curve?
Concerning the economy's adjustment process, use the AD/AS model to: Question 1: Show the short-run effects of an increase in desired saving(assuming that the economy is initially in a long-run equilibrium with Y* = Y).
Assume that the aggregate demand for fish is given by Q = D(P), where P is the price of fish. How will the price and quantity of fish be determined in equilibrium?
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