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depends on the size of the gap which is created by the AR/D curve and the MR curve.
Inflation raises the prices of the goods, so the real wages fall (ceteris paribus). So we are moving on the demand curve up and left. The companies can afford to produce more for that height of the prices, so the gap appears
Yes they do. In an inflationary gap the equilibrium with the aggregate demand and the short run aggregate supply curves is higher than the long run aggregate supply curve. Eventually, the short run aggregate supply curve will slowly move to the left towards equilibrium. Output in an inflationary gap cannot be held up. This is not usually allowed, usually monetary and fiscal policies work to move the aggregate demand. In a recessionary gap, the opposite will happen. The short run aggregate supply curve will move to the right slowly towards equilibrium because the natural rate of unemployment is higher than the actual rate of unemployment so people will be willing to work for less.
the Lorenz curve is the curve that illustrates income distribution, the curve states that there is a big income gap between Americans for many reasons: differences in skills and education, inheritances, and field of work. the wealthiest fifth Americans households earned nearly as much income as the four- fifths combined.
a Keynesian would argue that the essence to solve recession lies with demand management. When an economy is experiencing a boom (inflationary gap), government should tax people, reduce spending ...etc... to soak up the demand. When an economy is experiencing a bust (recessionary gap), government should decrease tax and increase government spending (using money they gained during the boom) to increase the demand of an economy.
Assuming that the aggregate demand curve does not move, the only way for the gap to be closed is by a shift in aggregate supply. These gaps cause a change in inflation expectations, moving the AS curve left (exp) or right (rec) back to long term equilibrium and changing the inflation rate.
depends on the size of the gap which is created by the AR/D curve and the MR curve.
Inflation raises the prices of the goods, so the real wages fall (ceteris paribus). So we are moving on the demand curve up and left. The companies can afford to produce more for that height of the prices, so the gap appears
Yes they do. In an inflationary gap the equilibrium with the aggregate demand and the short run aggregate supply curves is higher than the long run aggregate supply curve. Eventually, the short run aggregate supply curve will slowly move to the left towards equilibrium. Output in an inflationary gap cannot be held up. This is not usually allowed, usually monetary and fiscal policies work to move the aggregate demand. In a recessionary gap, the opposite will happen. The short run aggregate supply curve will move to the right slowly towards equilibrium because the natural rate of unemployment is higher than the actual rate of unemployment so people will be willing to work for less.
No, string theory is an attempt to bridge the gap between EVERYTHING, not just relativity and quantum, into one fundamental theory.
Not assigning grades to specific scores.
it is called the gap hypothesis
The gap theory first determines the difference between the customer's service expectations and the customer's perception of the service actually received.
Gap theory
This gap is referred to as the service gap and is considered the most important because it determines the level of satisfaction/dissatisfaction with the service and, ultimately, the organization.
The "gap theory" was popularized in the 19th century by theologians like Thomas Chalmers and Harry Rimmer. It suggests that there is a gap of time between Genesis 1:1 and 1:2, which allows for an older earth and the possibility of reconciling the Bible with the scientific theory of evolution. However, it is important to note that this theory is not universally accepted among Christian scholars.
Demand is high due to more awareness being created on the pollution. Supply to be studied