Using the classical perspective and the ad/as model, what will happen to the aggregate price level, real gdp, and unemployment rate in the long run?

Answers

Answer 1

Along the AD curve, real GDP increases as the price level decreases. Changes in the expense level will cause a movement along the AD curve.

Ad/As model

When the output is smaller than the aggregate order, it means consuming families are saving less. This will result in an unplanned decrease in inventories of unsold stock. Firms will expand production by employing more workers until AS and AD once again becomes equal, i.e., until the balance is restored (AD = AS). Negative shocks reduce output and increase unemployment. Positive shocks improve production and reduce unemployment.

An increase in AD will raise the price level. On the other hand, an expansion in AS will decrease the price level. If the AD increases more than the AS, then, the price level will rise. Contrariwise, if the AS change is more than the AD change, the price level will decline.

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Related Questions

No entries shall be allowed for district meets which are not submitted to the director on or before the ____ day before the first day of the meet.

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No entries shall be allowed for district meets which are not submitted to the director on or before the fifth day before the first day of the meet.

About district meet :

The spring meet district director is responsible for all spring meet activities, including one-act play, track & field, tennis, golf and all academic contests. Many spring meet district directors appoint a separate person, the district academic director, to be responsible for the academic contests. The district academic director reports to the spring meet district director and the district executive committee. Authority and responsibilities should be made clear to the district academic director at the time of appointment.

It is important that authority be centralized and organized. All entries and results will be entered via the UIL Spring Meet Online Entry System. No exceptions will be allowed, and deadlines will be strictly observed. The spring meet district director serves on the regional executive committee. Most regions invite the district director to a planning meeting in December or January. The district director’s input can be invaluable to the regional director and to the district. At least one academic person and one athletic person should be sent to every planning meeting.

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A qualitative forecasting method which utilizes structured questionnaires submitted to potential customers soliciting opinions about potential products to estimate likely demand is.

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A qualitative forecasting method which utilizes structured questionnaires submitted to potential customers soliciting opinions about potential products to estimate likely demand is called a market survey.

What is a market survey?A market survey is a survey research and analysis of the market for a certain good or service that looks at consumer preferences. A review of various client capabilities, including investment characteristics and purchasing power. Market research surveys are instruments for directly obtaining feedback from the target market to comprehend their traits, expectations, and needs.For emerging goods and services, marketers create innovative and interesting strategies, but their efficacy cannot be guaranteed.

Marketers must identify the features and product categories that the target audiences would readily accept for these to be successful. By doing this, a new path can be guaranteed to succeed.

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The share price falls when a dividend is paid because the reduction in cash decreases the?

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The share price falls when a dividend is paid because the reduction in cash decreases the market value of assets.

After a stock price goes ex-dividend, the share price in the market typically decreases by the amount of the dividend paid in order to reflect the fact that new shareholders there are not entitled to that payment.

In the market, when the dividends are paid out as stock instead of cash, then this can dilute earnings, which can also have a negative impact on share prices in the short term.

Hence, there is still no direct connection between a company's dividend and its stock price.

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When a worker comes late to the work site, others are likely to make an external attribution under conditions of:_____.

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When a worker comes late to the work site, others are likely to make an external attribution under conditions of high consensus, high distinctiveness, and low consistency

Explanations that emphasize environmental or situational elements, such as task difficulty, social effects, and the physical attributes of a specific place, are known as external attributions.

Situational circumstances are frequently blamed for actions and incidents that are thought to be unintentional. Examples of external attribution include people who attribute their bike's flat tire to the weather or students who excuse themselves from turning in their coursework because their dog ate it.

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In what ways might monetary policy be superior to fiscal policy?

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Monetary policy does not require congressional approval, it is more flexible than fiscal policy. Conversely, monetary policy has a propensity to increase inflation more than fiscal policy.

A country's central bank uses a set of instruments called monetary policy to regulate the total amount of money in circulation, foster economic expansion, and implement measures like adjusting interest rates and altering bank reserve requirements.

The Federal Reserve Bank of the United States carries out a monetary policy under a twin mandate to maximise employment while containing inflation.

A nation's overall money supply is managed by monetary policy, which also aims to promote economic growth.

Interest rate changes and adjustments to bank reserve requirements are examples of monetary policy strategies.

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What are some examples of indirect financial distress costs?
a) legal expenses
b) lost dividends
c) lost reputation
d) lost sales

Answers

Legal expenses are some examples of indirect financial distress costs.

Legal Protection Insurance (LPI), also known as Legal Protection Insurance (LEI) or simply Legal Protection, promotes access to law and justice by providing legal advice and paying legal costs for legal disputes. A special class of insurance that Any action by or against the policyholder will be filed. Depending on national regulations, legal protection insurance companies can also represent policyholders out of court or in court.

Statutory insurance with a history of 100 years. The concept originated in 1911 when members of the "Western Automobile Club" were offered various additional benefits. This includes fines and protection in the event of a dispute in police court. This basic legal protection was extended to traffic accidents, leading to France's first legal protection insurance offered by "La Défense Automobile et Sportive" (DAS), founded in 1917. "La Défense Automobile et Sportive (DAS)" provided motorists and athletes with legal advice and reimbursement of legal costs.

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If the company sues the plumber to recoup its loss in the lawsuit, which party will prevail?

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The company can recover 100% of the judgment as an indemnity, because the plumber was negligent, not the company.

A group of people can get together to form a company, which is a legal body used to conduct and manage commercial or industrial business operations. The business lines of an organization rely on its structure, which can be a company, a partnership, or even a sole proprietorship.

A one-person business is one that has just one person as a member, according to Section 2(62) of the Companies Act. Additionally, shareholders or subscribers to a business's memorandum of organization are all that a firm has as members. In essence, an OPC is a corporation with just one stakeholder on the payroll.

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