Give an example of a favorable shock to aggregate supply. Use the model of aggregate demand and
Question:
Give an example of a favorable shock to aggregate supply. Use the model of aggregate demand and aggregate supply to explain the effects of such a shock. How does it affect the Phillips curve?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 37% (16 reviews)
Examples of favorable shocks to aggregate supply include improved productivity and a de...View the full answer
Answered By
Bhartendu Goyal
Professional, Experienced, and Expert tutor who will provide speedy and to-the-point solutions. I have been teaching students for 5 years now in different subjects and it's truly been one of the most rewarding experiences of my life. I have also done one-to-one tutoring with 100+ students and help them achieve great subject knowledge. I have expertise in computer subjects like C++, C, Java, and Python programming and other computer Science related fields. Many of my student's parents message me that your lessons improved their children's grades and this is the best only thing you want as a tea...
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
Give an example of a model that is used in some area other than economics, other than the roadmap example explained in this chapter. What is unrealistic about this model? How well does the model...
-
Give an example of a scale that would be reliable but not valid. Also give an example of a scale that would be reliable but not valid. Also give an example of a scale that would be valid but not...
-
Give an example of a personnel policy that would help attract a larger pool of job candidates. Give an example of a personnel policy that would likely reduce the pool of candidates. Would you expect...
-
1. Farmer Annie's Ice Cream Shop has calculated the marginal product of labor, and the results are shown in the following table. The wage for workers is $70 per day, and the pints of ice cream sell...
-
The nine positive digits can be arranged into 3 3 arrays in 9! ways. Find the sum of the determinants of these arrays.
-
What is a value-added tax (VAT), and what is an advantage of such a tax relative to an income tax?
-
How does ICT impact communications?
-
Petras Music manufactures harmonicas. Petra uses standard costs to judge performance. Recently, a clerk mistakenly threw away some of the records, and only partial data for February exist. Petra...
-
A moving truck has two ramps, 3 m long and 4 m long, for loading and unloading. Which ramp creates a greater angle of elevation with the ground? Include a diagram in your answer.
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Draw the short-run Phillips curve and the long-run Phillips curve. Explain why they are different.
-
What is the sacrifice ratio? How might the credibility of the Feds commitment to reduce inflation affect the sacrifice ratio?
-
Shillong Electronics expects to produce 1,200,000 units of Product XX in 2020. Monthly production is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturing costs per unit are...
-
Three students are pulling on ropes attached to a ring as shown in the figure below. Determine the magnitude and direction of the net force. Enter the direction as an angle measured in degrees...
-
Q6. Two line charges with uniform charge density pl are sitting on the x-y plane as shown in figure. Determine the electric field intensity on the z-axis. -b Z P(0, 0, z) -a f a b
-
a) Earn-Alot Bank has the following income statement. Income Statement (in millions) Total interest income $6,800 Total interest expense 2,960 Net interest income 3,840 Provision for loan losses 390...
-
A particle starts from the origin at t=0 with an initial velocity of 5.5 m/s along the positive axis. If the acceleration is (-3.5 +4.2 m/s, determine (a)the velocity and (b)position of the particle...
-
What will be the moment of inertia of a homogeneous triangular board of mass m with side lengths a and b when rotated about the axis passing through side a? mb mb mb mb (a) (b) 2mb 3 (c) (e) 3 12 2 6...
-
__________ is expressing ethical concerns internally through company ethics hotlines or externally if employees perceive no other options.
-
The swap spread is the difference between the swap rate and the equivalent-maturity Treasury bond yield. Explain why a widening swap spread may be a signal of deteriorating economic conditions. Plot...
-
Write a note on breadth frst traversal and depth frst traversal?
-
The aggregate-demand curve slopes downward because a fall in the price level causes a. real wealth to decrease. b. the interest rate to decline. c. the currency to appreciate. d. all of the above.
-
In the model of aggregate demand and aggregate supply, the quantity of ________ is on the horizontal axis, and the ________ is on the vertical axis. a. output; interest rate b. output; price level c....
-
Most economists believe that classical macroeconomic theory a. is valid only in the long run. b. is valid only in the short run. c. is always valid. d. is never valid.
-
Develop a 3-year financial projection for your proposed cancer tele-genetics program . State any and all assumptions you make in creating your estimates. Please consider the following in creating...
-
Lets assume that we have project L, which has a 40% chance of turning out good. The company Raises $7,000, 50% from bondholders demanding a 6% interest rate and 50% from stockholders, which becomes...
-
Please assist in the filling out the above and below table. I have provided all information that has been provided to me. Company Shares Outstanding Latest Share Price MVE Total Debt W d W e a b c =...
Study smarter with the SolutionInn App