Question

In: Economics

Both a sharp increase or decrease in the price level might be damaging for the economy...

Both a sharp increase or decrease in the price level might be damaging for the economy during a financial crisis. Explain.

Solutions

Expert Solution

Rahul Sunny answered 1 year ago
Next > < Previous

Related Solutions

a. An increase in the price level in an economy will _____.​ a ​shift the aggregate...
a. An increase in the price level in an economy will _____.​ a ​shift the aggregate expenditure line downward, and result in a greater real GDP b shift the aggregate expenditure line upward, and result in a greater real GDP​ c shift the aggregate expenditure line downward​, and result in a lower real GDP d ​shift the aggregate expenditure line upward, and result in a lower real GDP​ e shift the aggregate demand curve toward the aggregate supply curve b....
What is corruption? In what ways might corruption be damaging to an economy?
What is corruption? In what ways might corruption be damaging to an economy?
An increase in demand can be expected to ["increase", "decrease"] equilibrium price and ["decrease", "increase"]   ...
An increase in demand can be expected to ["increase", "decrease"] equilibrium price and ["decrease", "increase"]         equilibrium quantity. An increase in supply can be expected to   ["decrease", "increase"] equilibrium price and ["decrease", "increase"]         equilibrium quantity. If there is an increase in demand and an increase in supply then we can expect equilibrium price to ["increase", "stay the same", "it is not possible to say", "decrease"] and equilibrium quantity to ["decrease", "stay the same", "increase", "it is not...
Show the effect on price (increase, decrease, no effect): Show the effect on price (increase, decrease,...
Show the effect on price (increase, decrease, no effect): Show the effect on price (increase, decrease, no effect) for each of the following situations under three form of market efficiency Situations Situations Weak Semi-Strong Strong The WSJ publishes that Landmark Inc. declared a dividend of $1 per share Landmark Inc. board members decide in a closed door meeting to open a new factory in Taiwan Your broker in NYSE tells you that Landmark Inc. CEO is going to declare retirement
Which of the following would make the price level increase and real GDP decrease?
Which of the following would make the price level increase and real GDP decrease?  a. aggregate demand shifts right. b. long-run aggregate supply shifts right  c. aggregate demand shifts left d. long-run aggregate supply shifts left
1.should these monopolists increase or decrease output, increase or decrease price, and on what information is...
1.should these monopolists increase or decrease output, increase or decrease price, and on what information is your answer based? Can the monopolists maximize profits minimize a loss ,or should they shutdown? Give a reasons for your answers based on the numbers in the rows Price MR Q TR TC P/L TVC ATC AVC MC 10 5 10 100 50 +50 30 5 3 7 50 <50 50 2500 2600 -100 1600 52 32 50 10 5 1000 10000 8000 +2000...
An increase in Money Supply will decrease the interest rate and increase the level of inflation...
An increase in Money Supply will decrease the interest rate and increase the level of inflation in the domestic market ...An increase in Money Supply will decrease the interest rate and decrease the exchange rate (the rate at which currencies can be traded for one another) I can't understand. Please explain this with a diagram.
Which of the following will increase both the price level and real GDP? Group of answer...
Which of the following will increase both the price level and real GDP? Group of answer choices A nationwide drought that drives up the prices of agricultural products A reduction in government spending for goods and services Greater optimism among business executives The aggregate demand curve is Group of answer choices Downward sloping because a reduction in the price level leads to a lower interest rate, causing consumption and investment spending to increase Downward sloping because a reduction in the...
1). Credits a) decrease both assets and liabilities. b) decrease assets and increase liabilities. c) increase...
1). Credits a) decrease both assets and liabilities. b) decrease assets and increase liabilities. c) increase both assets and liabilities. d) increase assets and decrease liabilities. 2). The normal balance of an account is the a) left side. b) right side. c) side which increases that account. d) side that decreases that account. 3). The double-entry system requires that each transaction must be recorded a) in at least two different accounts. b) in two sets of books. c) in a...
1). Credits a) decrease both assets and liabilities. b) decrease assets and increase liabilities. c) increase...
1). Credits a) decrease both assets and liabilities. b) decrease assets and increase liabilities. c) increase both assets and liabilities. d) increase assets and decrease liabilities. 2). The normal balance of an account is the a) left side. b) right side. c) side which increases that account. d) side that decreases that account. 3). The double-entry system requires that each transaction must be recorded a) in at least two different accounts. b) in two sets of books. c) in a...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT