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What happens When the expected price level falls below the actual price level?
find it yourself
What happens to the equilibrium price when the overall price level falls?
When the overall price level falls, the equilibrium price will usually fall, too.
If aggregate demand rises what happens to real GDP what happens to the price level?
Inflation.
What happens when the price level rises?
the demad goes down.
What happens when you have a surplus of goods to price?
What happens is there is too much of a good and not enough demand. This is called over supply and usually occurs when the current price level for the good is too high. To sell off the remaining goods, the solutions is to lower the price level and increase demand.
When are price and yield of government thirty-year bonds determined?
Price and yield are determined at auction.
What happens When the expected price level falls below the actual price level?
find it yourself
What happens to the equilibrium price when the overall price level falls?
When the overall price level falls, the equilibrium price will usually fall, too.
If aggregate demand rises what happens to real GDP what happens to the price level?
Inflation.
What happens when the price level rises?
the demad goes down.
When the Federal board engages in a tight money policy the price of government bonds tend to?
fall
Are high yield bonds safe and and are they insured by the Federal Government?
High-yield bonds are risky because they have lower credit quality and there are several events that could cause the price to decrease. They are not insured by the Federal Government.
What happens when you have a surplus of goods to price?
What happens is there is too much of a good and not enough demand. This is called over supply and usually occurs when the current price level for the good is too high. To sell off the remaining goods, the solutions is to lower the price level and increase demand.
How do you buy Australian government bonds?
You can buy Australian Government Bonds directly from the Reserve Bank of Australia (the RBA). The RBA publishes a buy and sell rate for bonds each day, and small investors can buy at that price without the need for a broker. The Australian Government issues Fixed Coupon bonds (which are traditional fixed income bonds), and Capital Indexed bonds, which are inflation linked bonds where the capital amount of your investment increases with inflation each year. Alternatively, if you don't want to buy bonds directly you can invest through a bond fund. There are a number which specialise in low risk AAA debt such as Australian government bonds.
What happens when government imposes price ceilings and floors in a market?
efficiency
An example of price floor in Pakistan?
Government of Pakistan always set a minimum price level of wheat to support the farmers from disheartening. Means that if the farmer is getting less price for its wheat crop in the open market. He may sell his wheat to government of Pakistan at a high price which set by the government.
When the federal reserve reduces the money supply what happens to the GDP and price level?
The reduction in the money supply increases the price level, causes deflation, and may increase or decrease the GDP depending on the level of rational expectations.
