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krisha900Lv1
8 Apr 2023
FRQ # 2:
Assume the economy of Andersonland is in a long-run equilibrium with full employment. In the short run, nominal wages are fixed.
- Assume that there is an increase in exports from Andersonland. Explain the effect of higher exports on the following in the short run:
- Real GDP
- Price Level
- Based on your answer in part (a), what is the impact of higher exports on real wages in the short run? Explain.
- As a result of the increase in exports, export-oriented industries in Andersonland increase expenditures on new container ships and equipment.
- What component of aggregate demand will change?
- What is the impact on the long-run aggregate supply? Explain.
FRQ # 2:
Assume the economy of Andersonland is in a long-run equilibrium with full employment. In the short run, nominal wages are fixed.
- Assume that there is an increase in exports from Andersonland. Explain the effect of higher exports on the following in the short run:
- Real GDP
- Price Level
- Based on your answer in part (a), what is the impact of higher exports on real wages in the short run? Explain.
- As a result of the increase in exports, export-oriented industries in Andersonland increase expenditures on new container ships and equipment.
- What component of aggregate demand will change?
- What is the impact on the long-run aggregate supply? Explain.
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capedbaldyLv10
16 Apr 2023
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15 Apr 2023
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11 Apr 2023
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mehdotstormLv10
8 Apr 2023
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