11.2 Building a model of aggregate demand and aggregate supply  (Page 15/24)

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• Card 15 / 24:
On a microeconomic demand curve, a decrease in price causes an increase in quantity demanded because the product in question is now relatively less expensive than substitute products. Explain why aggregate demand does not increase for the same reason in response to a decrease in the aggregate price level. In other words, what causes total spending to increase if it is not because goods are now cheaper?

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Can anybody provide Solow Growth Model?
compare and contrast the classical view and the Keynesian view of economic growth
what are the objective of macroecnomics in shortrun and long run?
hmm to see how things wages and other economic i dicators adjust in short and long run
What economic values calculate the rate of inflation?
Prabha
change in cpi
Thank you
Prabha
'You can't compare apples to oranges' an old adage, yet GDP exactly does that, anyone please to show how?
2. Mention the change if any in supply or demand or both with drawing: 1. The effect of introduction of breathable nail polish in Islamic countries on the sales of ordinary nail polish. 2. The effect on subscription if OSN is offering free receivers for new subscribers. 3. The effect on sales o
when MPs is 0.3 and autonomous consumption is 30billion what is d consumption expenditure
what is macroeconomic?
Shahidul
Consumption expenditure becomes: C = 30b + 0.3Y without lump sum tax and C = 30b + 0.3Yd with lump sum tax
olumide
Macroeconomics deals with the study of the behavior of aggregate individuals, firms or government in an economy in relation to consumption patterns and decision making
olumide
If the government decrases spending by ksh. 500 billion what is the change in output given MPC is 0.75
375
Philip
how can policy makers strike the balance between inflation and unemployment?
I dunno
Azeez
c=800 + 0.75y i=500 G=900 compute the equilibrium level of national output
y=c+I+g+(X-M) y=800+.75y+500+900+0 y-.75y=2200 .25y=2200 y=2200/.25 y=8800=national level of output
Anik
Please tell me the current crr, repo rate etc
cash reserve ratio is the amount that is deposit by the commercial bank in Central bank.... n repo rate is a loan interest amount
Sahar
Rohit
jo amount bank reserve rakhti hai bank mai customers k liye jese ATM mai ya bank mai rakha hota hai, wo slr hota hai
Sahar
pakka sahi hai
Rohit
good joke
Rohit
Argentina Lose !!😭😭
MR.ASHIM
SLR refers to that portion of total deposits of a commercial bank which it has to keep with itself in the form of cash reserve
Ranjeeta
What is cash crop?
commeciaal crops
Amal
So jowar is not cash crop?
Ranjeeta
anything which is plant inorder to sell in the market
Simeon
How demand deposits are different from savings?
Ranjeeta
can unemployment be a factor of inflation?
yeah it has an impact on cost push inflation
Vincent
yes ,unemployment is a factor of inflation and it is cost push inflation
Silu
Is phillip curve still applicable in today's economy?
Jestony
what has changed?
Qiniso
statistics show that Philip curve doesn't reflect reality all the time
Or
which causes to be inflation and deflation?
li
yes it is a factor of inflation . low unemployment results in high inflation and high unemployment results in low unemployment
Rishav
Could you explain me more?
li
In your question you use the word " can" ... So this exist as a possibility...
karoline
who can explain more about phillip's curve?
Jestony
Philip's curve shows that to achieve low employment. there must be high rate of price and this can be achieved by govt. policy - fiscal and monetary policy.
orgbu
microeconomics is individual firms and macroeconomics is a large as a full
That's true 👍
Kwibuka
word micro means small and tiny part. word macro means large and big part.
Exactly
Emmanuel
is unemployment another cause of inflation?
David
can I say unemployment can cause inflation?
David
no. unemployment can possibly lead to deflation
Asdfghjkl
if their are no production am I correct to say inflation will occurs
David
one of the causes of inflation is excess demand. if there's no production there would be no demand so no inflation
Asdfghjkl
if we take a look at inflation, it occur because of low production. High price chasing few goods.
David
So are you saying demand creates supply?
David
to an extent because if s9mething is demanded, it's likely to be supplied
Asdfghjkl
OK am still confused, if there is unemployment low production, and employment high production, inflation high increase in price, how can production be high and we are faced with inflation? When inflation is referred to higher price chasing few goods.
David
if the demand is increased , what is the graphics on it?