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Is the area under the marginal cost curve equal to the total variable cost?
yes
What is difference between change in supply and change in quantity supplied?
a change in supply is the shift in supply curve due to change in price of other commodities and other factors like taste,weather,income e.t.c while a change in quantity supply is the change in price of the commodity itself that affect the quantity supply,here the supply curve remain constant but there will be a movement along the supply curve.
What is the normal term structure of interest rates?
The term structure shows the expectations of the participants regarding interest rate changes and the way they will assess monetary policy conditions. It plays a vital role in economy and is also known as yield curve.
What does Disparity of Income Distribution mean?
it means distribution of income is how a nation's total economy is distributed amongst its population. Classical economists are more concerned about factor income distribution,that is the distribution of income between the factors of production,labor land and capital. Distribution of income is measured by Lorenz curve and Gini co
How do you calculate break even point?
1) By drawing up the Break-even chart and determine the intersection point between the Total revenue and Total cost curve. 2) Using the break even quantity formula = Fixed cost / per unit Contribution ( to find break even in $, you simply use the above result and times it with the selling price.)
Ceteris paribus the price level will fall when A The aggregate supply curve shifts to the left B The aggregate demand curve shifts to the left C The aggregate demand curve shifts to the right?
b
How would a rise in business affect the aggregate demand curve?
The aggregate demand curve shifts to the right
How would a rise in the business investment affect the aggregate demand curve?
The aggregate demand curve shifts to the right
An decrease in taxes shifts the aggregate demand curve to the?
right
When the demand curve shifts to the right, we say that what?
When the demand curve shifts to the right, we say that there has been an increase in demand.
An increase in interest rates affects aggregate demand by?
An increase in interest rates decreases the aggregate demand shifting the curve to the left.
What is aggregate shock?
In economics, the supply curve in the aggregate supply and demand model shifts drastically to the left due to an inadequacy of resources or because the demand overpowers the supply.
Explain movements along the aggregate demand curve and shifts of the aggregate demand curve?
Movements along the aggregate demand curve are caused by changes in price level - real wealth effect, interest rate effect and open economy effect. If some non-price level determinant causes total spending to increase/decrease then the curve will shift to the right/left - consumption, investment, government expenditure, net exports.
What happens with an increase in deficit spending?
the demand for loanable funds will increase, interest rates will increase
Fiscal and monetary policies are used to shift the aggregate supply curve or the aggregate demand curve?
Aggregate demand curve.
How does an increase in demand shift the supply and demand curve to the left or right?
An increase in demand shifts the supply and demand curve to the right. This means that both the quantity demanded and the price of the product will increase.
If the demand curve shifts to the right, how does this impact the market equilibrium"?
When the demand curve shifts to the right, it indicates an increase in demand for the product. This leads to a higher equilibrium price and quantity in the market.
