1. What are the components of aggregate supply? Provide 2 substantive postings to each of the 3 Discussion Question's each week. 2. How do aggregate supply shifts occur? Provide 2 substantive postings to each of the 3 Discussion Question's each week. 3. How do recessionary and inflationary GDP gaps arise? Provide 2 substantive postings to each of the 3 Discussion Question's each week.

1. What are the components of aggregate supply? Provide 2 substantive postings to each of the 3 Discussion Question's each week. 2. How do aggregate supply shifts occur? Provide 2 substantive postings to each of the 3 Discussion Question's each week. 3. How do recessionary and inflationary GDP gaps arise? Provide 2 substantive postings to each of the 3 Discussion Question's each week.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 1QR

See similar textbooks

Similar questions

Specify the supply determinants of real GDP. List the factors of each category and explain in detail.
Describe how different parts of the economy may have experienced shifts and changes in supply and demand. Provide at least 4 examples.
In 2013, Prussia's aggregate demand curve was determined by the equation M + 1-4% A change in aggregate demand means that in 2014, Prussia's aggregate demand curve was determined by the equation Using this information, draw Prussia's old and new dynamic aggregate demand curves on the graph Which of the factors could have resulted in the change irn aggregate demand seen between 2013 and 2014? 13 AD 2013 an improvement in technology O an increase in imports O higher consumer confidence O a decrease in oil prices 12 AD 2014 10 8 5 4 3 2 4 -3 2 1 0 1 2 3 4 5 6 78 9 10 Real GDP growth rate
Provide 2 substantive postings to each of the 3 Discussion Question's each week. 1. What are the major components of aggregate demand? 2. What does the consumption function tells us? 3. How and why do aggregate demand shifts occur?
Create a graph for an aggregate demand curve. Use the variable ‘Price Level’ for the vertical axis and ‘Real GDP’ for the horizontal axis. In your answer, explain why there is an inverse relationship between the price level and real GDP. Use your graph to illustrate your explanations. Also, discuss determinants of Aggregate Demandor factors that shift Aggregate Demand curve.
What are the factors other than price that can shift aggregate demand curve interms of investment and consumption? Also explain graphically.
Over the past two years there has been a depletion of groundwater in thenation due to severe drought in the country. 1. Which of the two graphs above is correct? Explain why. 2. What happened to real GDP on the selected graph? Why? 3. What happened to the price level on the selected graph? Why? 4. What happened to the aggregate demand and the aggregate supply? Why?
Create a graph for an aggregate demand curve. Use the variable ‘Price Level’ for the vertical axis and ‘Real GDP’ for the horizontal axis. Then explain why there is an inverse relationship between the price level and real GDP. Use your graph to illustrate your explanations. Also, discuss determinants of Aggregate Demand or factors that shift Aggregate Demand curve.
Adjust the graph to show the effect of a decrease in the aggregate price level. look at image Which of the statements offers the best explanation for the change demonstrated in the graph? a. Prices of goods and services decrease on average. b. Consumers purchase less of one product, like cars, and more of another, like clothing. c. The law of demand dictates the behavior of the aggregate demand curve. d. The prices of a few goods in the market dropped substantially.
Using aggregate demand and aggregate supply, graph the effects on the price level and GDP of each of the following. Draw a large graph and label all axes, initial and final equilibrium points, direction of shift if any, all curves and lines, equilibrium values on the x- and y-axes. State the conclusion in words. a. A cut in income taxes b. An increase in military spending c. A drop in export demand by foreign purchasers d. An increase in imports e. A decline in business investment spending
The following are variables that may cause shifting of aggregate demand (AD) curve. Discuss the effect of increasing these variables to the aggregate demand. Use graphical approach to demonstrate the effect of increasing of each variable and explain why the AD curve shifted. a. Interest rate (domestic) b. Government expenditure (domestic) plzz explain it
Use an aggregate supply (upsloping range) and aggregate demand diagram to demonstrate the effect of each of the following. For each problem state the determinant and what happens to the price level and RGDP. 1. Consumer confidence grows for third straight month. 2. A technological breakthrough lowers the cost of energy. 3. The government engages in a new highway building program. 4. A series of natural disasters disrupt production and delivery of goods. 5. Laws are tightened to make immigration more difficult and this leads to labor shortages. 6. Interest falls. 7. Productivity rises. 8. Labor strikes cause an interruption in shipments of parts. 9. Increased graduation rates for schools lead to more-skilled workforce. 10. Stock and bonds markets soar.