0
Does a change in the nominal quantity of money have real effects in the new Keynesian model?
In the New Keynesian model, a change in the nominal quantity of money can have real effects, particularly in the short run. This is due to price stickiness, which means that prices do not adjust immediately to changes in the money supply. As a result, an increase in nominal money can lead to higher output and employment as firms respond to increased demand before prices fully adjust. However, in the long run, these effects dissipate as prices adjust, and the economy returns to its natural level of output.
What else can I help you with?
A change in quantity supplied is the result of what?
a change in quantity supplied is the result of
Explain the effects of a rise in the price on market when the price elasticity of demand for product is inelastic?
Revenue of the producer will increase since there will be no change in quantity demanded.
What is a measure of the way quantity supplied reacts to a change in price?
It is Price Elasticity of Supply. It is defined as the ratio of a percentage change in quantity supplied to the percentage change in price (which brought about the change in quantity supplied).
The measure of the way quantity supplied reacts to change in price is?
It is Price Elasticity of Supply. It is defined as the ratio of a percentage change in quantity supplied to the percentage change in price (which brought about the change in quantity supplied).
How can an increase in nominal income and a decrease in real income occur simultaneously?
real income is the change with inflation taken into account, nominal income is purely the change of income therefore if inflation was to be 5% and nominal income increased by 2% there would be a real income decrease of 3%
A change in quantity supplied is the result of what?
a change in quantity supplied is the result of
What is a percent of change?
change of any quantity divided by its original quantity
Constant is a quantity that does not?
Constant is a quantity that does not change.
How does a change in one quantity affect the change in other quantities?
Feedback in general is the process in which changing one quantity changes a second quantity, and the change in the second quantity in turn changes the first.Positive feedback amplifies the change in the first quantity while negative feedback reduces it.....
Explain the effects of a rise in the price on market when the price elasticity of demand for product is inelastic?
Revenue of the producer will increase since there will be no change in quantity demanded.
What is nominal line voltage?
'Nominal' means 'named'. So a 'nominal' voltage is the named voltage of a system. For example, when we talk about a 120-V or 240-V system, we are describing their nominal values, not their actual values which can change from moment to moment.
What is a measure of the way quantity supplied reacts to a change in price?
It is Price Elasticity of Supply. It is defined as the ratio of a percentage change in quantity supplied to the percentage change in price (which brought about the change in quantity supplied).
The measure of the way quantity supplied reacts to change in price is?
It is Price Elasticity of Supply. It is defined as the ratio of a percentage change in quantity supplied to the percentage change in price (which brought about the change in quantity supplied).
What is the measure of the way quantity supplied reacts to change in price?
It is Price Elasticity of Supply. It is defined as the ratio of a percentage change in quantity supplied to the percentage change in price (which brought about the change in quantity supplied).
Does magnitude of the quantity change with change in the system of units?
No, the magnitude of a quantity does not change with a change in the system of units. The numerical value representing the quantity may change based on the system of units used, but the magnitude itself remains constant.
How can an increase in nominal income and a decrease in real income occur simultaneously?
real income is the change with inflation taken into account, nominal income is purely the change of income therefore if inflation was to be 5% and nominal income increased by 2% there would be a real income decrease of 3%
What is a ratio that compares a change in quantity to the original amount?
A ratio that compares a change in quantity to the original amount is known as the relative change or percentage change. It is calculated by taking the difference between the new quantity and the original quantity, dividing that difference by the original quantity, and then multiplying by 100 to express it as a percentage. This ratio helps to understand how significant the change is in relation to the original amount.
