0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
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.
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.
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 gap grading noticed on a grading curve?
Not assigning grades to specific scores.
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?
it is called the gap hypothesis
What is Knowledge gap theory?
Knowledge gap theory posits that communication campaigns may inadvertently widen the gap between individuals with high and low levels of prior knowledge on a topic. This theory suggests that those with more knowledge are more likely to benefit from the information presented in the campaign, while individuals with less prior knowledge may struggle to understand or retain the new information.
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
Explain the gap between theory and practice in colonial policy?
The gap between theory and practice in colonial policy arises from the disconnect between the lofty ideals and principles put forth by colonial powers, such as promoting civilization and modernization, and the harsh realities of implementing these policies on the ground. In practice, colonial policies often resulted in exploitation, oppression, and the erosion of indigenous cultures and societies, highlighting the contradictions between theory and the actual impact on colonized populations.
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.
