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lara31 [8.8K]
3 years ago
11

When economists study aggregate supply and aggregate demand, what are they studying? the supply and demand of a good produced by

one company the total supply and demand of goods produced at a givenprice the equilibrium price of one good that is produced the reason for a decrease in supply and demand for a specific good
Business
2 answers:
ziro4ka [17]3 years ago
3 0

Answer: The total supply and demand of goods produced at a given price.

Explanation:

They are studying Macroeconomics. Macroeconomics is a branch of economy that deals with the study of demand and supply and overall economic activities happening around as a whole instead in parts. Thus, when economists are studying aggregate demand and supply, they are studying macroeconomics and not microeconomics.

Ostrovityanka [42]3 years ago
3 0
The total supply and demand of goods produced at a given price is the correct answer, hope this helps.
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Answer:

a. The initial change in the money supply would be $0

b. The initial change in deposits would be $3,000.

c. Total reserves will also increase by $3,000.

d. The excess reserves is $2,820.

e. Cumulative change = $47,009

Explanation:

(a)  Currency in circulation and bank deposits are both parts of the money supply.

So, when a man paid DMV with 300,000 pennies or $3,000 which DMV deposited into its account then in that case currency in circulation decreased by $3,000 and bank deposits increase by $3,000.

Since one component of the money supply is increasing while other is decreasing and that also by the same amount there will be no change in the money supply.

So,  the initial change in the money supply would be $0

(b)  DMV has deposited $3,000 into its bank account.

So,

Deposits will increase by $3,000.

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The initial change in deposits would be $3,000.

(c) Total reserves increases in the equal amount of the increase in deposits.

Deposits have increased by $3,000.

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Total reserves will also increase by $3,000.

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Required reserves created = $3,000 * 0.06 = $180

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The excess reserves is $2,820.

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Cumulative change = $2,820 * 16.67 = $47,009

The cumulative change in the banking system in lending capacity would be $47,009.

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