1-What is the general relationship between a country's price level and the quantitiy of it's domestic output (Real GDP) demanded? Who are the buyers of real US GDP? 2- what assumptions cause the immediate -short-run aggregate supply curve to be horizontal? why is the long-run aggregate supply curve vertical? Explain the shape of the short-run aggregate supply curve . Why is the short-run curve relatively flat to the left of the full employment output and relatively steep to the right ? 3- why does a reduction in aggregate demand tend to reduce real output, rather than the price level? 4- 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 . 5- In early 2001 investment spending declined in the USA. In the 2 months follwing september , 11 2001 attacks on the US, consumption also declined . Use Ad-AS analysis to show the two impacts on Real GDP. 6- Using the concept of the multiplier , explain why mass layoffs by large companies like Boeing ,or General motors are a concern to the citizens and leaders where those firms are located .
1-What is the general relationship between a country's
2- what assumptions cause the immediate -short-run
3- why does a reduction in aggregate demand tend to reduce real output, rather than the price level?
4- Explain"
5- In early 2001 investment spending declined in the USA. In the 2 months follwing september , 11 2001 attacks on the US, consumption also declined . Use Ad-AS analysis to show the two impacts on Real GDP.
6- Using the concept of the multiplier , explain why mass layoffs by large companies like Boeing ,or General motors are a concern to the citizens and leaders where those firms are located .
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