Question: Why do we measure short-run output Y in percentage terms rather than in dollar terms?

Why do we measure short-run output Y in percentage terms rather than in dollar terms?

Step by Step Solution

★★★★★

3.42 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

One reason is that the size of the shortrun output fluctuations tends to be constant ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

780-B-E-M-E (7174).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

You are advising a coffee shop manager who wants to estimate how much sales will change if the price of a latte rises. Explain why he should measure elasticity in percentage terms rather than in...

Q:

Why is the price elasticity of demand a relative measure? That is, why is elasticity measured in percentage terms rather than absolute terms? 1. So the coeffecient of elasticity will not be dependent...

Q:

Why do we measure output in value terms rather than in physical terms? For that matter, why do we bother to measure output at all?

Q:

Why do we measure short-run output Y ~ in percentage terms rather than in dollar terms?

Q:

You are advising a coffee shop manager who wants to estimate how much sales will change if the price of a latte rises. You tell him that he should measure the change in sales using the percentage...

Q:

One type of systematic error arises because people tend to think of benefits in percentage terms rather than in absolute dollar amounts. As an example, Samir is willing to drive 20 minutes out of his...

Q:

Percentage (%) Returns. It is usually more convenient to summarize information about returns in percentage terms, rather than dollar terms, because that way your return doesn't depend on how much you...

Q:

2. Percentage (%) Returns. It is usually more convenient to summarize information about returns in percentage terms, rather than dollar terms, because that way your return doesn't depend on how much...

Q:

One type of systematic error arises because people tend to think of benefits in percentage terms rather than in absolute dollar amounts. As an example, Samir is willing to drive 20 minutes out of his...

Q:

One type of systematic error arises because people tend to think of benefits in percentage terms rather than in absolute dollar amounts. For example, Samir is willing to drive 20 minutes out of his...

Q:

A horticulturalist at a large research institution designs a study to evaluate the effect on tomato yields of water loss due to transpiration. She decides to examine four levels of shading of the...

Q:

Ellen, Fargo, and Gary are partners who share profits and losses 20 percent, 20 percent, and 60 percent, respectively, after Ellen and Fargo each receive a $12,000 salary allowance. Capital balances...

Q:

Specify the type (categorical, ordinal, quantitative) for each of the following variables recorded in a survey of telephone usage in student households: a. Telephone exchange (first three numbers...

Q:

Explain one disadvantage of the ARR method. [2]

Q:

Explain why G has the same multiplier as I, but taxes have a different multiplier.

Q:

If the government decides that aggregate demand is excessive and is causing inflation, what options are open to it? What if the government decides that aggregate demand is too weak instead?

Q:

Advocates of lower taxes on capital gains argue that this type of tax cut will raise aggregate supply by spurring business investment. Compare the effects on investment, aggregate supply, and tax...

Q:

The malicious software that used to launch distributed denial of service ( DDoS ) attacks: Select one: a . logic bombs b . Trojan Horse c . Zombie d . b + c

Q:

Arnold Inc. is considering a proposal to manufacture high-end protein bars used as food supplements by body builders. The project requires use of an existing warehouse, which the firm acquired three...

Q:

If you paid $44 to a loan company for the use of $1, 233 for 88 days, what annual rate of interest did they charge? (Assume a 360-day year.) The annual rate of interest is %. (Round to three decimal...