0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What happens to prices and output in short run when Short-run aggregate demand shifts left?
Prices rise, output rises
Cost output relationship in short run?
cost output relationship
A horizontal short-run aggregate supply SRAS curve implies that in the short run?
In the short run, prices are fixed and firms produces output to meet demands. So, firms take prices as given and produce output to meet desired expenditure.
What is equilibrium GDP?
In the short run, equilibrium GDP is the level of output at which output and aggregate expenditure are equal
Most economists use the aggregate demand and aggregate supply model primarily to analyze?
Short-run fluctuations in the economy
What happens to prices and output in short run when Short-run aggregate demand shifts left?
Prices rise, output rises
Cost output relationship in short run?
cost output relationship
In short run does demand pull raise both the price level and the real output?
No, it only raises the price level. Output cannot adjust quick enough in the "short run". That's why it's called the short run.
A horizontal short-run aggregate supply SRAS curve implies that in the short run?
In the short run, prices are fixed and firms produces output to meet demands. So, firms take prices as given and produce output to meet desired expenditure.
What is equilibrium GDP?
In the short run, equilibrium GDP is the level of output at which output and aggregate expenditure are equal
Most economists use the aggregate demand and aggregate supply model primarily to analyze?
Short-run fluctuations in the economy
Expliain Cost- Output relationship both in the short-run and long-run?
THE SHORT-RUN COST-OUTPUT RELATIONSHIP REFERS TO A PARTICULAR SCALE OF OPERATION OR TO A FIXED PLANT. IT INDICATES VARIATIONS IN COST OVER OUTPUT FOR THE PLANT OF A GIVEN CAPACITY AND THEIR RELATIONSHIP WILL VARY WITH PLANTS OF VARYING CAPACITY.
If a firm decides to produce no output in the short run its costs will be?
its fixed cost
Do fixed and variable costs affect short-run marginal cost?
Fixed costs do not affect short-run marginal cost because they are just that- fixed. They are not dependent on quantity when it changes and does not vary directly with the level of output. Variable costs, however, do affect short-run marginal costs.
What is full employment level of output?
The quantity of real production or real aggregate output (or better yet, real gross domestic product) produced by the macro-economy when resources are at full employment. For all practical purposes, full-employment real production is real GDP produced when unemployment is at it's natural level, the combination of frictional and structural unemployment that can be maintained without inflation (or deflation either). For the aggregate market analysis, this is the level of real production achieved and maintained in the long run. The long-run aggregate supply curve is vertical at full-employment real production.
What is the difference between short-run costs and long-run costs?
For a given configuration of plant and equipment, short-run costs vary as output varies. The firm can incur long-run costs to change that configuration. This pair of terms is the economist's analogy of the accounting pair, above, variable and fixed costs
Is cyclical unemployment and the natural rate of employment the same?
Natural Rate of Unemployment -The natural rate of unemployment is unemployment that does not go away on its own even in the long run. -It is the amount of unemployment that the economy normally experiences.Cyclical Unemployment -Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate. -It is associated with with short-term ups and downs of the business cycle.
