Specify the price-level outcomes
Question:
Explain: "Unemployment can be caused by a decrease of aggregate demand or a decrease of aggregate supply". In each case, specify the price-level outcomes.
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"Unemployment can be caused by a decrease of aggregate demand or a decrease of aggregate supply". In each case, specify the price-level outcomes.
The fixed manufacturing cost is $450,000 and the fixed operating cost is $75,000. The selling price per unit is $925.
Determine the equilibrium levels of output and employment in this private closed economy. What are the sizes of the MPC and MPS?
"An increase in transfers (TR) will not affect the level of real GDP or the real money supply in a fully employed economy."
What measures the fed should take to reduce the unemployment rate and expand the economy.
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