Economics

posted by .

1. Using AD/AS, describe the short-run and long-run effects of an increase in the money supply on the equilibrium level of production and the price level. Be sure to explain what happens to Total Expenditures (using the 3 effects of spending changes as a result of changes in the price level).



2. Using AD/AS, describe the short-run and long-run effects of an increase in the price of oil.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics help

    What is the short-run effect on the exchange rate of an increase in domestic real GNP, given expectations about future exchange rates?
  2. Economics

    The Fed conducts an open market purchase of securities. Explain the effects of this action in the short run and the long run on: a)The quantity of money b)The quantity of money demanded c)The nominal interest rate d)The real interest …
  3. Economics

    3. Starting from short-run equilibrium, the following occurs: Labor productivity rises, and individuals expect higher (future) incomes. What will be the effects on the price level, Real GDP, and the unemployment rate in the short run?
  4. economics

    This is going to be really long, but I want to see if my answers are correct. This is problem number 10.10 in my Intermediate Microeconomics book. A perfectly competitive painted necktie industry has a large number of potential entrants. …
  5. micro economics

    1) Assume that the gold-mining industry is competitive. a) Illustrate a long-run equilibrium using diagrams for the gold market and for the a representative gold mine. b) Suppose that an increase in jewellery demand induces a a surge …
  6. economics

    I am completely stuck on these two questions. I have read my chapter, but I am still doubting that I got the answers correct. 1.A decrease in aggregate demand causes a decrease in ______ only in the short run, but causes a decrease …
  7. economics

    I am completely stuck on these two questions. I have read my chapter, but I am still doubting that I got the answers correct. 1.A decrease in aggregate demand causes a decrease in ______ only in the short run, but causes a decrease …
  8. economics

    am completely stuck on these three questions. I have read my chapter, but I am still doubting that I got the answers correct. 1.A decrease in aggregate demand causes a decrease in ______ only in the short run, but causes a decrease …
  9. Macroeconomics

    (Monetary Policy and Aggregate Supply) Assume that the economy is initially in long-run equilibrium. Using an AD–AS diagram, illustrate and explain the short-run and long-run impacts of an increase in the money supply.
  10. Microeconomics

    A perfectly competitive industry has a large number of potential entrants. Each firm has an identical cost structure such that long run average cost is minimized at an output of 10 units (qi=10 ). The minimum average cost is R5 per …

More Similar Questions