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jek_recluse [69]
3 years ago
13

Big AD and AS general equilibrium system (2 points): Assume that the short-run equilibrium output and price combination Yeq,Peq

is characterized by the point where the aggregate demand curve AD intersects the short-run aggregate supply curve SRAS. Aggregate demand AD is determined by IS-LM equilibrium. That is, aggregate demand is (Y,P) combinations consistent with market clearing in the goods market (IS) and in the money market (LM). The equilibrium equations for this economy are the following:Y¯ = F (K¯,L¯) LRAS: Natural level of output
Y = Y¯ +a(P−EP) a > 0 SRAS: Aggregate Supply

Y = C(Y −T) +I(r) +G IS: Goods market clearing

M P = L(r,Y) LM: Money market clearing
(a) Show the short-run effect of and the channel through which an increase in the money supply M ↑ affects the equilibrium output Y, real interest rate r, and price levels P (draw only the graphs which have any changes on them; i.e., if there is no change to planned expenditure, don't draw that graph).

(b) Show the short-run effect of and the channel through which an increase in government spending G ↑ affects the equilibrium output Y, real interest rate r, and price levels P
Business
1 answer:
Andru [333]3 years ago
3 0

Answer:

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Answer: $15600

Explanation:

To calculate the amount of the Payroll Department's cost that is allocated to the Assembly Department goes thus:

First we need to calculate the allocation rate which will be:

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= Payroll checks × Allocation rate

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Therefore, the amount of the Payroll Department's cost that is allocated to the Assembly Department is $15600.

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2 years ago
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3 years ago
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Answer:

The correct word for the blank space is: equity.

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6 0
3 years ago
A government is torn between selling annual pollution allowances and setting an annual pollution tax. Unlike in the messy real w
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2 years ago
If a seller requires an intermediary to purchase a supplementary product to qualify to purchase the primary product the intermed
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Answer:

A Tying Contract

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If a seller requires an intermediary to purchase a supplementary product to qualify to purchase the primary product the intermediary wishes to buy, it results in a tying contract. It is mostly treated as an illegal because it pushes  intermediary organization to buy other products if they wishes to purchase the products which is actually needed to be purchased. Some companies make it compulsory for their intermediaries in doing so. For example, if you have to buy 10 packs of Lays, then you must be buying 5 extra boxes of Pepsi as well. It is being done because of the power and market share that company is enjoying in the market, so they take its advantage.

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