Category: Economics

If the short-run aggregate demand curve moved right because unemployment rates decreased for period of time, express how short-run aggregate supply would respond. Provide your answer below:
Answer:
Immediate (short-run) effect: the economy moves along the SRAS curve — real output rises and the price level increases as AD shifts right, and unemployment falls further.
If unemployment remains below its natural rate for a sustained period, upward pressure on wages and other input costs emerges. As nominal wages and costs rise, firms face higher production costs.
Higher costs cause the short-run aggregate supply curve to shift left (a decrease in SRAS), which raises the price level further and reduces real output toward potential output.
Net outcome: an initial expansion in output and higher prices from the AD shift is partially or fully offset over time by a leftward shift in SRAS, typically returning output toward its long-run (potential) level but at a higher price level (higher inflation).

QUESTION 11Aerial installation is suited to:Neither of the alternatives are correct.projects where rapid deployment is important.temporary applications.Both of the alternatives are correct.

The three main types of unemployment are:
frictional, seasonal, and structural.
frictional, structural, and recessionary.
cyclical, temporary, and long-term
frictional, cyclical, and structural

The time between when the Fed adjasts the moncy supply and when the adjustment has an effect en the economy is

A negative real shock causes the:a) DAD curve only to shift inward.b) DAD and LRAS curves to shift inward.c) SRAS and LRAS curves to shift inward.d) DAD and SRAS curves to shift inward.

Preject 2A. Find the NPV for the following project if the firm’s WACC is 12% (2)B. Find the IRR for the following project if the firm’s WACC is 12% (2)
Yeir,Canh Flow
0
(40,000)

Whereas the dirigist see regional integration as a return to the pre-world war 1 trade liberalisation, the liberalist see regional as expanded state intervention.Question 43AnswerTrueFalse
True
False