illsutrate and explain the shape of the AD curve and thr Sars curve with appropriate diagrams.

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Rahul Sunny answered 7 months ago

(a)The shape of ERU curve depends on the definition of the real wage. Using appropriate diagrams,...

(a)The shape of ERU curve depends on the definition of the real wage. Using appropriate diagrams, describe the two definitions of the real wage that brings about the differences in the shape of the ERU curve. (b) Using AD-BT-ERU and WS-PS diagrams, analyze the following shocks to the equilibrium unemployment, real exchange rate, trade balance, and real wage (W/Pc). (i) A rise in mark-up due to weaker competition policy rules. (ii) An increase in union bargaining power. (iii) An increase...

What is the difference in the explanation of the shape of the aggregate demand curve (AD)...

What is the difference in the explanation of the shape of the aggregate demand curve (AD) and a single product demand curve (D)? What is the difference in the explanation of the shape of the Short Run Aggregate Supply Curve (SRAS) and Long Run Aggregate Supply Curve (LRAS)?

Explain the two theories which explain fluctuations in unemployment, with appropriate diagrams.

Explain the meaning of flat Phillips curve in AD-AS framework. Compared with the steeper Phillips curve,...

Explain the meaning of flat Phillips curve in AD-AS framework. Compared with the steeper Phillips curve, when the Phillips curve is relatively flat, what is the impact of the given aggregate demand shock on the economy? What is the possible impact of the flat Phillips curve on fiscal policy and monetary policy?

Name the two hypotheses that are meant to explain the shape of the yield curve. a)...

Name the two hypotheses that are meant to explain the shape of the yield curve. a) Liquidity Preference and the Efficient Market Hypothesis b) Yield Compression and Present Value Bias c) Present Value Bias and Expected Returns d) Liquidity Preference and Unbiased Expectations

Explain the shape of the network good demand curve and illustrate with a diagram

1. Explain how each of the following events affects the AD curve

1. Explain how each of the following events affects the AD curve a. An increase in consumer confidence leads to higher consumption spending. Aggregate demand shifts to the right Aggregate demand is unchanged Aggregate demand shifts to the let b. The government reduces income taxes. Aggregate demand shifts to the left Aggregate demand is unchanged Aggregate demand shifts to the right2. Explain how each of the following events affects the AS curve. a. The Fed increases the money supply. Aggregate supply is unchanged Aggregate supply shifts to the right Aggregate supply shifts...

a)Using the AD-ERU and the WS-PS diagrams and assuming the real wage is W/P, explain the...

a)Using the AD-ERU and the WS-PS diagrams and assuming the real wage is W/P, explain the effects on the real wage, the real exchange rate and output when there is:- (i) a decline in tax wedge (ii) an expansionary of fiscal policy (b) A small and open economy which practices a flexible exchange rate system has experienced a permanent positive aggregate demand shock due to a drastic increase in export. Based on this situation, draw the PC-MR, the IS-RX, and...

(i) With the aid of appropriate diagrams, explain why indifference curves are traditionally convex to the...

(i) With the aid of appropriate diagrams, explain why indifference curves are traditionally convex to the origin. (10%) (ii) Given the indifference curve for two-goods is convex, derive a price inelastic demand curve for Good X (10%) (iii) With reference to the previous elements of this coursework question, discuss the links between the indifference curve, price elasticity estimates and the theory of supply and demand in economics (80%).

a. Using appropriate demand and supply diagrams in each of the following cases explain the impact...

a. Using appropriate demand and supply diagrams in each of the following cases explain the impact on the market price and quantity traded. i. Market for second-hand clothing following a high increase on import duties on second- hand clothes ii. The market for tomatoes following a bumper harvest iii. The market for Sanwatt battery following a fall in price of Tiger head battery b. Define market as applied in economics and explain briefly any four types of markets.

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