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Assume in a competitive market that price is initially below the equilibrium level. We can predict that price will?
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Assume the US economy is in short-run equilibrium with a price level of 150 and output of 6 billion The money m What is the impact of the Federal Reserve's policy on the equilibrium interest rate?
It Falls
How did the Marxist school of economic theory challenge the Classical theories?
for classical theories look up thomas malthus ... Also, classical theories say there is an "invisible hand" that guides the economy back to equilibrium. Marx said that the economy should be controlled, thus making to go to equilibrium when you want it to. Only problem is equilibrium isn't a definite spot and depends on market demand and supply. But when the market is controlled these things get trickier. I have only studied oligopoly, monopoly, perfect competition, and competitive monopoly. I would assume that a command economy would be the Monopoly, which determines the price by how much they are willing to supply that is over the marginal cost.
Why the market is unstable at consumer equilibrium?
There are many reasons why a consumer market equilibrium may be unstable, and it depends on which school of economic thought you follow. Generally, if there actually is a consumer equilibrium (which some believe does not truly occur) then what will cause it to become unstable is the effect of random shocks: I.e.) let future consumption for any period be ct+j = ct + Et. E is a random shock variable which is normally distributed around the mean (which we'll assume to be 0). Consumption in any period is simply equal to consumption in the period of time = t plus whatever shocks occurs in the economy (i.e.) political unrest, social movements, oil crises, etc.). In an economy, small shifts in variables such as consumption can cause larger changes because once an economy moves away from equilibrium, it causes a resulting change in other key equations which is no longer optimal. How the economy restores to equilibrium is also a debate amongst economist: Keynesians believe that wages/prices are 'sticky' and thus equilibrium is slow to reoccur after a shock; classicists believe that wages/prices are not sticky so that equilibrium will reestablish itself quickly. The rate at which an economy corrects these shocks will also affect how unstable equilibrium is. Finally, equilibrium can also constantly change due to factors such as technological growth. The economy needs time and information to adjust to these new equilibria and this can cause instability.
What does imperfect asset substitutability assume?
Imperfect Asset substitutability assumes that returns from two assets in different countries differ in equilibrium. The main reason is risk, i.e. If bonds denominated in different currencies have diverse degree of risk, investors will hold very risky assets if and only if the expected return is relatively high.
How can supply and demand reach an equilibrium position?
The answer is from an economics point of view. You might need to draw a diagram to understand the question better. Let's say that the initial equilibrium price and quantity is stable, where the demand and supply curves intersect each other. Using the market for console games for relevance, let's say the price of Play Station 3 is initially priced at USD 3.00. (it's only an example, as I have no idea how much it costs). At this price, we can say that that is the equilibrium price of the PS3, and the equilibrium quantity is 1000 units. However the equilibrium price and quantity can change depending on changes in the supply and demand in the market, hence the question is asking how the interaction between demand and supply can determine the price and output. Let assume that the demand for PS3 increases, which can happen in real life during holiday season or before Christmas. If this happens, in a graph, the demand graph will shift out. An increase in the demand while the supply remains the same, means there is excess demand of PS3 in the market. This means there are a lot of people who want to buy the PS3 but there are too little in the market or insufficient amount supplied. If this happens, the price will increase. (this is very normal in economics, when there exists excess demand the value of the good increases). The increase in the price, will thus form the new equilibrium price and quantity. We can say that the excess demand caused the price of PS3 to increase, and only a few can purchase it. This is one example of the interaction of demand and supply to determine the equilibrium price and quantity. At times, it's not only the demand that can affect the price and quantity. There are times where the supply can affect the price of a good. If excess demand causes the price to increase, excess supply, meaning a surplus of goods in the market. will mean the price will eventually fall. What you need to understand is the use of demand and supply to determine the price and quantity is a model. This demand and supply model is used to basicly understand the relationship between price and quantity and factors that can affect it.
What is the synonym for predict?
guess, assume, infer, estimate.
Assume the US economy is in short-run equilibrium with a price level of 150 and output of 6 billion The money m What is the impact of the Federal Reserve's policy on the equilibrium interest rate?
It Falls
In the incident command system the first responder to arrive on scene must initially?
Assume command of incident
How did the Marxist school of economic theory challenge the Classical theories?
for classical theories look up thomas malthus ... Also, classical theories say there is an "invisible hand" that guides the economy back to equilibrium. Marx said that the economy should be controlled, thus making to go to equilibrium when you want it to. Only problem is equilibrium isn't a definite spot and depends on market demand and supply. But when the market is controlled these things get trickier. I have only studied oligopoly, monopoly, perfect competition, and competitive monopoly. I would assume that a command economy would be the Monopoly, which determines the price by how much they are willing to supply that is over the marginal cost.
Does the model of decay accurately represent the decay of a radioactive subsatnce?
If we are dating a substance on unknown age, no, this is because, we are assuming we know how much substance was initially present, also we assume there has been no contamination, lastly we assume the decay rate has always been the same.
A young flower is wiltong what can you infer about this flower what do you predict will happen next?
If a young flower is wilting, it is safe to assume that this flower will die. It may need more sun and water.
How can Financial managers can predict future interest rates?
The professional advice on attempting to predict interest rates is simple - don't. However, carefully watching developments in the economy as a whole, and reading to the releases issued by central banks can give the careful manager an idea, but they must always assume that they will probably be wrong.
How to use the subconscious mind to win the lottery jackpot?
You do that every time you choose your lottery numbers so it's safe to assume that the subconscious mind cannot predict the outcome of a random lottery draw.
Why microeconomic is called partial equilibrium analysis?
Equilibrium means equality or the balance of something, so partial equilibrium would mean that something is either partially equal or balanced as a whole, or only parts of something is balanced, while other parts are not equal.
What type of entry does Excel assume you are?
Excel assumes data is text initially, but can treat it differently depending on the way you enter it. That is why you enter an equals sign at the beginning of a formula to indicate to Excel that you are creating a formula.
What do all eight planets of our solar system have in common?
All eight planets have the following features in common:They are in orbit around the SunThey have sufficient mass to assume hydrostatic equilibrium (a nearly round shape)They have "cleared the neighborhood" around its orbit.
When should you initially check a child for signs of circulation?
The signs of circulation would be movement, breathing, healthy skin colour, healthy skin temperature. There are lots of answers to the question - assuming you're not a healthcare provider.... Initially check on approach. What do they look like when you walk up to them? Moving or not? Then (assuming we're talking about unconscious kids) open the airway & check for breathing. You'll assess circulation right there: is the skin warm to touch when you open the airway? Are they breathing? If the answer to both of those is 'no' then you can assume they have no circulation. If they are breathing, you can safely assume they have a pulse.
