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Can a persons money wage decrease at the same time their real wage increases?
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Why does aggregate demand go up when money supply increases?
It doesn't. Money supply has no effect on aggregate demand. Aggregate demand is only effected by the buying power of money, real interest rate, and the real prices of exports and imports. If the supply of money goes up it only causes a short term decrease in the nominal interest rate. The price level is not accompanied by a decrease in the supply of money so the real interest rate does not rise.
Umeployement increase when real GDP increases or real GDP decreases or output increases?
Unemployment causes GDP to decrease. GDP means gross domestic product. If there are no employees to create a product, the GDP goes down.
Will increase in nominal money supply increase real money supply?
No because real money supply would only increase if the price level doesnt increase or increases at a slower pace than the increase in nominal money supply. This is because the real money supply takes into account the current price level.
Increase in real GDP are often interpreted as increase in welfare. what are some problems with this interpretation?
Increase in Real GDP is often interpreted as increase in welfare because Increase in Real GDP causes an increase in average interest rate in an economy by which Government expenditures (Government purchases and transfer payments) increases. Problem with this interpretation is that the Real GDP increases due to increase in price level or money market by which real money supply decreases and money supply demanded exceeds real money supply. That means that people start demanding more money in order to full fill their requirements.
Why rise in price level cause interest rates rise?
Interest rates can be thought of as the cost of money. Therefore assuming a fixed amount of money in the economy, if the price level increases, real income decreases and consequently money may have to be borrowed in order to maintain real income. But because there's a fixed amount of money in the economy there will be more demand for money than there'd be supply of. In essence, the increase in the price level, increases the demand of money and also the price of money which, coincidently, is the interest rate.
Why does aggregate demand go up when money supply increases?
It doesn't. Money supply has no effect on aggregate demand. Aggregate demand is only effected by the buying power of money, real interest rate, and the real prices of exports and imports. If the supply of money goes up it only causes a short term decrease in the nominal interest rate. The price level is not accompanied by a decrease in the supply of money so the real interest rate does not rise.
When cyclical unemployment increases does the gap between real GNP and potential GNP increase or decrease or stay the same?
increases
Umeployement increase when real GDP increases or real GDP decreases or output increases?
Unemployment causes GDP to decrease. GDP means gross domestic product. If there are no employees to create a product, the GDP goes down.
Is persons a real word?
no, the real word for persons is PEOPLE !!
Will increase in nominal money supply increase real money supply?
No because real money supply would only increase if the price level doesnt increase or increases at a slower pace than the increase in nominal money supply. This is because the real money supply takes into account the current price level.
Increase in real GDP are often interpreted as increase in welfare. what are some problems with this interpretation?
Increase in Real GDP is often interpreted as increase in welfare because Increase in Real GDP causes an increase in average interest rate in an economy by which Government expenditures (Government purchases and transfer payments) increases. Problem with this interpretation is that the Real GDP increases due to increase in price level or money market by which real money supply decreases and money supply demanded exceeds real money supply. That means that people start demanding more money in order to full fill their requirements.
What is the code for unlimited money on imobsters?
This is a money cheat that always works. By adding the codes TXHGRS and 44NADY You will get double the amount of money you already have and increases your real estate income by 90%.
Does the trustee owe the trust money because the real estate market took a plunge?
Generally, no. The decrease was not the result of the actions of the trustee.
Why rise in price level cause interest rates rise?
Interest rates can be thought of as the cost of money. Therefore assuming a fixed amount of money in the economy, if the price level increases, real income decreases and consequently money may have to be borrowed in order to maintain real income. But because there's a fixed amount of money in the economy there will be more demand for money than there'd be supply of. In essence, the increase in the price level, increases the demand of money and also the price of money which, coincidently, is the interest rate.
Concern about an international crisis has caused consumers to save their money and postpone big purchases what is the effect on aggregate demand and supply?
aggregate demand will decrease, lowering both real GDP and the price level
What are advantages of investing?
Looking at macroeconomic objectives, money will decrease in real terms due to inflation. Meaning a apple used to cost me $2 but now it costs me $3, your $2 can no longer purchase the apple, therefore the $2 has decreased in value in real terms. Investing, like purchasing stock will earn you money which may compensate for the decrease of value of money in real terms, but notice that there is a risk of losing money as well. Another example is putting your money into a bank, this is a sort of investment as it gives you a interest rate, but in most cases this rate is lower than the inflation rate.
What are the advantages of investment?
Looking at macroeconomic objectives, money will decrease in real terms due to inflation. Meaning a apple used to cost me $2 but now it costs me $3, your $2 can no longer purchase the apple, therefore the $2 has decreased in value in real terms. Investing, like purchasing stock will earn you money which may compensate for the decrease of value of money in real terms, but notice that there is a risk of losing money as well. Another example is putting your money into a bank, this is a sort of investment as it gives you a interest rate, but in most cases this rate is lower than the inflation rate.
