Assume that the economy is originally in longrun equilibrium and that there is a drop in demand.
Question:
Assume that the economy is originally in longrun equilibrium and that there is a drop in demand. Use graphs to explain how and why the economy initially moves to a short-run equilibrium with unemployment. How does the economy return to long-run equilibrium?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (5 reviews)
When there is a drop in demand in an economy that is initially in longrun equilibrium the economy may experience a shortrun equilibrium with unemploym...View the full answer
Answered By
Collins Omondi
I have been an academic and content writer for at least 6 years, working on different academic fields including accounting, political science, technology, law, and nursing in addition to those earlier listed under my education background.
I have a Bachelor’s degree in Commerce (Accounting option), and vast knowledge in various academic fields Finance, Economics, Marketing, Management, Social Science, Women and Gender, Business law, and Statistics among others.
4.80+
4+ Reviews
16+ Question Solved
Related Book For
Financial System Of The Economy Principles Of Money And Banking
ISBN: 9780765622464
5th Edition
Authors: Maureen Burton,Bruce Brown
Question Posted:
Students also viewed these Business questions
-
1. What have you learned about creative writing in this class? 2. Do you consider yourself more a poet or a fiction writer? Why? Give only one sentence of the plot and then explore the underlying...
-
Kadita travels to Intramuros, Manila where she rents a hotel room and dines at several restaurants. The price she pays for her hotel room and meals includes the following: 2% service charge, 1%...
-
In the New Keynesian model, suppose that in the short run the central bank cannot observe aggregate output or the shocks that hit the economy. However, the central bank would like to come as close as...
-
In Exercises 8586, find a. (f g)(x); b. (g f)(x); c. (f g)(3). f(x)=x, g(x) = x + 1
-
How would profit and nonprofit organizations differ in their applications of the strategy-formulation framework?
-
Using PERT, Harold Benson was able to determine that the expected project completion time for the construction of a pleasure yacht is 21 months, and the project variance is 4. (a) What is the...
-
Many single women and married couples use donated sperm to conceive children each year. Pennsylvania resident Donna Donovan decided to use donated sperm from Idant Laboratories, a New York sperm bank...
-
Multiple Choice. Choose the best answer. 1. Under GASB standards, which of the following would be considered an example of an intangible asset? a. A lake located on city property. b. Water rights...
-
Create a relational model for the following ERD. Please do not develop a graphical version of the relational databases. Please just list the tables, attributes, primary keys and foreign keys. Dept...
-
What are the goals of monetary policy?
-
Draw a short-run aggregate supply curve. Why is the curve upward sloping? What causes the short-run aggregate supply curve to shift?
-
Suppose that you computed a 95% confidence interval for a population mean. The user of the statistics claims your interval is too wide to have any meaning in the specific use for which it is...
-
1. a. Is there a tort of invasion of privacy in Canada? Explain. b. If you answered "no" to question (a), how might a Canadian plaintiff obtain legal redress for an alleged invasion of privacy? 2. a....
-
In terms of corporate finance, what's does a profitability index of 2.46 mean?
-
Stay Fit is an online personal trainer based in Liverpool which offers tailor - made exercise for its clients. Stay Fit intends to expand the services beyond Liverpool area. They have identified...
-
You were in an auto accident and are due $50,000 from the insurance company for the other person that hit you. They are going to pay you this amount in 5 years. What is the value of that money today...
-
What is the cost of capital and why is it important to a business? What are the different capital financing options available to organizations? What is working capital for short term business...
-
A copper wire 20.0 m long with radius 4.57 x 103 m and = 1.72 x 108 cm is used to form a solenoid that will produce a magnetic field. (a) What is the wires resistance? (b) If the wire is connected...
-
DC has unused FTC carryover from 2017 in the separate category for GC income as the result of income generated by a foreign branch. The income was foreign source general category income. In 2018 the...
-
Many homeowners itemize deductions while many renters claim the standard deduction. Explain.
-
Tax rules are often very precise. For example, a taxpayer must ordinarily provide over 50% of another persons support in order to claim a dependency exemption. Why is the threshold over 50% as...
-
What is the normal due date for the tax return of calendar-year taxpayers? What happens to the due date if it falls on a Saturday, Sunday, or holiday?
-
How can interdisciplinary approaches, drawing from fields such as sociology, anthropology, psychology, cultural studies, and critical theory, contribute to nuanced understandings of identity as a...
-
How do environmental factors, such as geographic location, community dynamics, and cultural heritage, shape the salience and expression of identity, and what strategies can be employed to promote...
-
In 2 0 2 0 , Mr . Pep, the chairman, founded FoodPlanet PLC . The company specialises in providing wholesale services to independent retailers, caterers, and businesses, with a strong commitment to...
Study smarter with the SolutionInn App