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the concern is that unemployment may increase because fewer workers are needed.
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The basic problem portrayed by the traditional Phillips Curve is?
That the level of aggregate demand sufficiently high to result in full employment may also cause inflation.
What is an economic leakage?
When supply of money is contact with high saving . In other words we can say the saving is grater than investment .Consequences is high employment , price falls , low of aggregate demand . For better explanation you can help from Tutorpace
Will a cashier be in high demand or low demand?
it will be in high demand
Explain why the law of demand can apply only in a free market?
Because the free market is the entity that in itself dictates the law of supply and demand. If the purchasing public has a high demand for a product, then more of that product is produced. Conversely, if there is only a low demand for a product, less of that product is produced.
Is being a pediatrician high or low demand?
HiGh demand.
Which statement is true about the demand for housing in the 1950s?
Demand for housing was high
The basic problem portrayed by the traditional Phillips Curve is?
That the level of aggregate demand sufficiently high to result in full employment may also cause inflation.
Are crna jobs in high demand at this time?
The CRNA field is definitely in high demand. This job requires you to apply anesthesia to patients prior to surgery. This is also the highest paid job in the nursing field.
Why is aggregate supply related to the price level?
This is in accordance to the Demand & Supply Theory... When the demand for a product is high and its supply is low, this usually causes the price of that commodity to increase Similarly when supply for a product is high and the demand for that product is low, it causes the price of that product to decrease. Hence the supply is inversely related to the price of any product (Provided the Demand is in accordance to the two points mentioned above)
What is an economic leakage?
When supply of money is contact with high saving . In other words we can say the saving is grater than investment .Consequences is high employment , price falls , low of aggregate demand . For better explanation you can help from Tutorpace
Will a cashier be in high demand or low demand?
it will be in high demand
Is being a pediatrician high or low demand?
HiGh demand.
Explain why the law of demand can apply only in a free market?
Because the free market is the entity that in itself dictates the law of supply and demand. If the purchasing public has a high demand for a product, then more of that product is produced. Conversely, if there is only a low demand for a product, less of that product is produced.
What does it mean that the demand for a product is high?
if a product is in high demand it means lots of people want/like it, if something is in demand someone wants it, high demand means that product is popular and people want it, it's in high demand.
Is there a high demand to be a dentist?
Yes, there's a high demand for this career.
Is there a high demand for an actress's?
Yes there is definetly a high demand for being an actress
Why do aggregate demand curve slope downward explain briefly?
The first reason for the downward slope of the aggregate demand curve is Pigou's wealth effect. Recall that the nominal value of money is fixed, but the real value is dependent upon the price level. This is because for a given amount of money, a lower price level provides more purchasing power per unit of currency. When the price level falls, consumers are wealthier, a condition which induces more consumer spending. Thus, a drop in the price level induces consumers to spend more, thereby increasing the aggregate demand. The second reason for the downward slope of the aggregate demand curve is Keynes's interest-rate effect. Recall that the quantity of money demanded is dependent upon the price level. That is, a high price level means that it takes a relatively large amount of currency to make purchases. Thus, consumers demand large quantities of currency when the price level is high. When the price level is low, consumers demand a relatively small amount of currency because it takes a relatively small amount of currency to make purchases. Thus, consumers keep larger amounts of currency in the bank. As the amount of currency in banks increases, the supply of loans increases. As the supply of loans increases, the cost of loans--that is, the interest rate--decreases. Thus, a low price level induces consumers to save, which in turn drives down the interest rate. A low interest rate increases the demand for investment as the cost of investment falls with the interest rate. Thus, a drop in the price level decreases the interest rate, which increases the demand for investment and thereby increases aggregate demand. The third reason for the downward slope of the aggregate demand curve is Mundell-Fleming's exchange-rate effect. Recall that as the price level falls the interest rate also tends to fall. When the domestic interest rate is low relative to interest rates available in foreign countries, domestic investors tend to invest in foreign countries where return on investments is higher. As domestic currency flows to foreign countries, the real exchange rate decreases because the international supply of dollars increases. A decrease in the real exchange rate has the effect of increasing net exports because domestic goods and services are relatively cheaper. Finally, an increase in net exports increases aggregate demand, as net exports is a component of aggregate demand. Thus, as the price level drops, interest rates fall, domestic investment in foreign countries increases, the real exchange rate depreciates, net exports increases, and aggregate demand increases. source: http://www.sparknotes.com
