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How market power is measured?

depends on the size of the gap which is created by the AR/D curve and the MR curve.


When does inflation occur in a dynamic aggregate demand and supply model?

Inflation raises the prices of the goods, so the real wages fall (ceteris paribus). So we are moving on the demand curve up and left. The companies can afford to produce more for that height of the prices, so the gap appears


Does Economies have a self correcting mechanism for inflationary and recessionary gaps Expain?

Yes they do. In an inflationary gap the equilibrium with the aggregate demand and the short run aggregate supply curves is higher than the long run aggregate supply curve. Eventually, the short run aggregate supply curve will slowly move to the left towards equilibrium. Output in an inflationary gap cannot be held up. This is not usually allowed, usually monetary and fiscal policies work to move the aggregate demand. In a recessionary gap, the opposite will happen. The short run aggregate supply curve will move to the right slowly towards equilibrium because the natural rate of unemployment is higher than the actual rate of unemployment so people will be willing to work for less.


What is the lorenz curve and what dose is suggest about the distribution of income on the us?

the Lorenz curve is the curve that illustrates income distribution, the curve states that there is a big income gap between Americans for many reasons: differences in skills and education, inheritances, and field of work. the wealthiest fifth Americans households earned nearly as much income as the four- fifths combined.


What actions would a modern Keynesian economist advocate to cure a recessionary gap?

a Keynesian would argue that the essence to solve recession lies with demand management. When an economy is experiencing a boom (inflationary gap), government should tax people, reduce spending ...etc... to soak up the demand. When an economy is experiencing a bust (recessionary gap), government should decrease tax and increase government spending (using money they gained during the boom) to increase the demand of an economy.

Related Questions

Why would an expansionary gap lead to a change in inflation Why would a recessionary gap lead to a change in inflation?

Assuming that the aggregate demand curve does not move, the only way for the gap to be closed is by a shift in aggregate supply. These gaps cause a change in inflation expectations, moving the AS curve left (exp) or right (rec) back to long term equilibrium and changing the inflation rate.


How market power is measured?

depends on the size of the gap which is created by the AR/D curve and the MR curve.


When does inflation occur in a dynamic aggregate demand and supply model?

Inflation raises the prices of the goods, so the real wages fall (ceteris paribus). So we are moving on the demand curve up and left. The companies can afford to produce more for that height of the prices, so the gap appears


Does the string theory bridge the gap between Einstein's theory of relativity and quantum mechanics?

No, string theory is an attempt to bridge the gap between EVERYTHING, not just relativity and quantum, into one fundamental theory.


What is gap grading noticed on a grading curve?

Not assigning grades to specific scores.


Does Economies have a self correcting mechanism for inflationary and recessionary gaps Expain?

Yes they do. In an inflationary gap the equilibrium with the aggregate demand and the short run aggregate supply curves is higher than the long run aggregate supply curve. Eventually, the short run aggregate supply curve will slowly move to the left towards equilibrium. Output in an inflationary gap cannot be held up. This is not usually allowed, usually monetary and fiscal policies work to move the aggregate demand. In a recessionary gap, the opposite will happen. The short run aggregate supply curve will move to the right slowly towards equilibrium because the natural rate of unemployment is higher than the actual rate of unemployment so people will be willing to work for less.


How would you describe the gap theory?

The gap theory first determines the difference between the customer's service expectations and the customer's perception of the service actually received.


Which creation theory has two separate instances of creative activity by God?

Gap theory


How would you define the gap in the gap theory?

This gap is referred to as the service gap and is considered the most important because it determines the level of satisfaction/dissatisfaction with the service and, ultimately, the organization.


What does the emd gap theory suggest?

The EMD gap theory, or the Emergent Mind Development gap theory, posits that there is a disparity between the rapid advancement of technology and the slower evolution of human cognitive and social skills. This gap can lead to challenges in effectively utilizing technological innovations, as individuals may struggle to adapt to new tools and social dynamics. The theory suggests that addressing this gap is crucial for maximizing the benefits of technology in society. It emphasizes the need for education and training to develop the necessary skills to bridge this divide.


What is the theory that sections of active faults that have had few earthquakes are likely to be sites of strong earthquakes in the future called?

This theory is known as the characteristic earthquake model. It proposes that sections of active faults that have not ruptured in recent history (seismic gap) are more likely to produce larger earthquakes in the future to release accumulated stress.


Who invented the gap theory?

It depends on which gap theory you are talking about, I will tell what the gap theories there are:The Bad gap theory: The bad gap theory is the Evolution gap theory, this is where theologians take millions of years and fit them between Geneses 1:1 (In the beginning God created the heavens and the earth.) and Geneses 1:2 (The earth was formless and darkness was over the surface of the deep, and the spirit of God was hovering over the waters.)In these millions of years it is supposed to be with all the dinosaurs.The Good gap theory:the good gap theory is the real gap theory, what some believe is that between Geneses 1:1 and 1:2 is when Satan was cast out of heaven.In 1:1 God created the heavens and the earth, God created the heavens in which there are three heavens the Atmospheric heavens the universe ans heaven, but God created only the first two heavens that is mentioned in 1. God created the earth for Satan, God created it with all sorts of jewels precious stones, but when Satan rebelled against God, he was cast out of heaven.If you want to learn more about what I wrote go to Ariel.org and go to the come and see.