of this “shock” on overall Real GDP (Aggregate Expenditure) as well as the impact upon the individual components that make up GDP (i.e. other macroeconomic components and indicators such as bond rates, money supply, etc.) For this analysis, we have created two models of the U.S. economy and will look specifically at the short run case (the first 5 - 8 quarters spanning 2012-2013). First, we created a “baseline” model which assumed that no change in aggregate expenditures occurred. Next, we created
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QUESTION 1 Explain why the study of macroeconomics is important in making business decisions. Macroeconomics is the study of the economy as a whole. It is the study of the aggregate demand and aggregate supply which reflect the demand and supply of everybody in the whole country. It examines the activities and trends in economy’s wide phenomena, such as unemployment, inflation, economic growth, money supply, budget deficits, and exchange rates. The knowledge from this study will indicate the
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affected by the relationship of demand and production that the company follows which we can call the production strategy. There are several production strategies used worldwide by companies, and these have all different impact on inventory and the time it takes for a consumer to have the product on its hand. In order for a company to understand what type of production and manufacturing method will work best for their firm, they need to use aggregate planning. “Aggregate planning is the process of developing
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following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, neither, or both. Which curve shifts, and in which direction? What happens to aggregate output and the price level in each case? a. The price level changes i. Which curve shifts? Neither, because it will cause the same changes on the demand and supply curve. ii. Which direction does it shift? No direction iii. What happens to aggregate output? Nothing iv. What
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PRE-TEST – ANSWER KEY Econ 361, 1st Hourly Prof. Khan Mohabbat 1. The broadest measure of the aggregate price level is the a) GDP deflator.* b) consumer price index. c) producer price index. d) d. gross domestic product. 2. If the value of a price index was 125 for 2005 and 75 for 1982, and GDP was 2500 in 2005 compared to 600 in 1982, the value of real 2005 GDP in terms of 1982 prices is a) 1500.* b) 1000. c) 2500. d) 360. 3. The index that measures the change in price of a typical basket of
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ECON 312 WEEK 1 TO 7 QUIZZES Click Link Below To Buy: http://hwaid.com/shop/econ-312-week-1-to-7-quizzes/ Week 1 Question 1. Question : (TCO 1) Economics is the study of Question 2. Question : (TCO 1) The key economic concept that serves as the basis for the study of economics is Question 3. Question : (TCO 1) From an economic perspective, when a student decides to attend another year of college, the student has concluded that the marginal Question 4. Question : (TCO 1) Which
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SESSION 2009-2010 DEPARTMENT OF ECONOMICS SPRING TERM PROFESSOR K. BURDETT EC100 – ECONOMICS FOR BUSINESS ASSIGNMENT 2 This assignment is to be handed in to Room 5B.209 for surnames A-L and room 5B.211 for surnames M-Z BEFORE 12.00 NOON on TUESDAY 16th March 2010. Bring your registration cards. You will receive an electronic receipt. You should NOT hand in assignments to your class teacher. Please note that the University has a coursework deadline policy. Therefore, all assignments submitted
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Problems on Aggregate Production Planning 1. Planners of a company have obtained information regarding the forecasted demand of a product as follows: Period 1 2 3 4 5 6 Total Forecast 200 200 300 400 500 200 1800 Costs Regular time: $2/unit Overtime: $3/unit Subcontract: $6/unit Inventory: $1/unit Backorder: $5/unit They now want to evaluate a plan that calls for a steady rate of regular-time output, mainly using inventory to absorb the uneven demand but allowing some backlog. Overtime
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accounting and basic elements of economic planning. Learning Outcomes: At the end of the course and having completed the essential reading and exercises, the students will be able to – Analyse and interpret the relationship between factors influencing demand and supply Explain and analyse the nature of production and its relationship to costs. Analyse business practices with respect to pricing and competition. Understanding the various strategic options in banking sector in the context of consumer behaviour
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to influence levels of aggregate demand. Primarily, you must understand that lowering the rate of interest will make it cheaper for people to borrow as well as make it cheaper to pay back existing loans. As a result, firms may use this money that they have saved to spend on upgrading the quality of their capital goods. Also, increases in consumer expenditure will lead to an increase in aggregate demand because consumer expenditure is a component of of aggregate demand. However, if consumers
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