Compare and contrast the graphs used in the microeconomic supply and demand model with those used...

Compare and contrast the graphs used in the microeconomic supply and demand model with those used in the economic fluctuations model.

Solutions

Expert Solution

Comparing and contrasting:

1) The supply & demand model is a micro model, whereas the fluctuation model is macro model.

2) The supply and demand model sets the relationship between price and quantity, whereas the fluctuation model shows relationship between economic growth and period of time.

3) Since both the supply and demand are line segments, the relationship could be predicted earlier (like the increasing price decreases the quantity demand); in case of fluctuation model such prediction can’t be done (like there is no fixed time of expansion or recession from cycle to cycle, but it differs)

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

compare and contrast supply and demand considerations for over-the-road transportation.

COMPARE AND CONTRAST THE MARKET DYNAMICS FOR PRODUCED GOODS (AND SERVICES) WITH THE SUPPLY AND DEMAND...

COMPARE AND CONTRAST THE MARKET DYNAMICS FOR PRODUCED GOODS (AND SERVICES) WITH THE SUPPLY AND DEMAND MARKET CONDITIONS FOR LABOR. To get you started concentrate on two distinct chapters in the Schiller textbook. See chapter 3 for an analysis of price determination of a good or service. See chapter 8 for an analysis of labor markets and determination of the wage rate. In order to help launch your mini essay, here are some things you might consider: --Identify and...

Draw the aggregate demand and aggregate supply graphs in a three-panel model: In the first graph,...

Draw the aggregate demand and aggregate supply graphs in a three-panel model: In the first graph, show aggregate demand on the graph and aggregate supply in the immediate short run. In the second graph, again show aggregate demand, but this time show aggregate supply in the short run. Finally, in the last panel, show aggregate demand and aggregate supply in the long-run. Be sure to label each axis and each curve in each graph Discuss the following by referring to...

Compare and contrast the major microeconomic failures and macroeconomic failures. for an analysis of the problems...

Compare and contrast the major microeconomic failures and macroeconomic failures. for an analysis of the problems of individual markets. analysis of problems in the aggregation of markets. Identify and summarize the dynamics involved in both kinds of market failure presented. .How are these different economic breakdowns similar and different? .what are the best ways to solve these economic problems and why? please please answer by typing 1. write an essay more than 1 000 words by typing introduction, 4 bodys...