event whether it changes the short-run aggregate supply‚ long-run aggregate supply‚ or a combination of the two‚ and why. a) Automotive firms in the United States switch to a new technology that raises productivity. Technological change enables firms to produce more from any given amount of facts of production. Therefore‚ technology increases potential GDP. So‚ an increase in potential GDP increases both- long run aggregate supply and short- run aggregate supply. b)Toyota and Honda build
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Nectar in a Sieve Inner/Outer Questions Emily Murphy 1st period 8/30/11 1) What is the main character’s name in the book? A: Rukmani 2) What do you think could have happened if Ira was given the medicine the Rukmani had to bear children for her first husband? A: She would have been severely neglected and abused‚ for he seems to be not a trustworthy man. 3) What is the underlying theme of the importance of fertility? A: In Hindu society‚ fertility and the ability to take
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Experiment Title : Determination of relative densities and water absorption of coarse aggregates. Objective : To determine the relative densities and water absorption of a coarse aggregate. Description of Sample : The sample used was naturally occuring riverside aggregate and was left to soak for 24 hours prior to the experiment. Apparatus Required A pycnometer – a pycnometer is a litre glass jar which has a conical screw on it ’s lid‚ and a small aperature at the apex of the conical lid. The
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Loss was a major part of the book Nectar in a Sieve‚ by Kamala Markandaya‚ and was highly influenced by the Europeans bringing it into India. First‚ the tannery caused many problems for the Indian culture. Many people diffused to India and around the tannery. With so many cultures diffusing into the country‚ it caused the Indian culture to start to decay and for cultural appropriation to occur. Not only did the culture slowly go away‚ but people were killed or died from the tannery. Next‚ because
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Chapter 7 The Circular Flow Model Revisited Factors of production: · Land – rent · Labor – wages · Capital – interest · Entrepreneurship – profit The important principle: In any given time period‚ the value of output produced by an economy is equal to the total income that is generated in producing the output‚ which is equal to the expenditures made to purchase that output Value of output produced = total income generated = expenditure made to purchase Leakages
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businesses expect future profits to fall. a. Explain for each event whether it changes short-run aggregate supply‚ long-run aggregate supply‚ aggregate demand‚ or some combination of them. A deep recession in the world economy decreases aggregate demand. A sharp rise in oil prices decreases short-run aggregate supply. The expectation of lower future profits decreases investment and decreases aggregate demand. b. Explain the separate effects of each event on U.S. real GDP and the price level‚ starting
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This article covers the first increase in housing prices in Australia in 2011‚ raising hopes that Australian housing prices may recover in 2012. Housing prices have also dropped‚ but recently‚ the average cost for a house has also risen. The article states that this is mainly because of low interest rates and shortage of supply. Low interest rates (charges that borrowers pay to lenders for using the borrowed money)‚ would cause a shift in demand (the capability and willingness to consume a commodity
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Solution: Computation of: Revenue Simple returns = (service fee‚ $50) x no. of simple returns demand Complex returns = (service fee‚ $200) x no. of complex returns demand Cost of permanent employees Payment for accountant = (regular rate‚ $600 per week) x no. of permanent accountant Payment for computer system = (per computer rate‚ $175 per week) x no. of accountants who access to the computerized system Total permanent costs = payment to accountant
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Explain the aggregate supply in the short run. In the short-run‚ the aggregate supply curve is upward sloping. There are two main reasons why the quantity supplied increases as the price rises: 1. In the short-run‚ the nominal wage rate is fixed. As a result‚ an increasing price indicates higher profits that justify the expansion of output. 2. An alternate model explains that the AS curve increases because some nominal input prices are fixed in the short-run and as output rises‚ more production
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Aggregate Supply and Demand Models ECO/372 November 24‚ 2014 Aggregate Supply and Demand Models Current state of Interest Rates and their effect on the U.S. economy Since the financial collapse of 2007 the United States Federal Reserve has maintained a system of policy accommodation consisting of lowering short-term interest rates to near zero levels‚ and buying large quantities of longer-term Treasury securities in order to encourage new spending and maintain the current prices of assets. Because
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