government expenditure results in an upward shift of the aggregate demand. Government spending generates demand for goods and services. As a result, the overall aggregate demand increases. Moreover, government spending infuses more capital into the economy. Consumers get more disposable cash so that they can increase their consumption. An upsurge in consumption results to an upturn of aggregate demand. The upward shift of the aggregate demand curve in turn leads to close the recessionary gap. The shift
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and Statistics Rufus Giwa Polytechnic, Owo, Ondo State Abstract This paper assesses the determinants of demand functions for import in Nigeria using variables Real Gross Domestic Product (RGDP), External Reserves (EXTR), Real Exchange Rate (REXCH), and Index of Openness (OPNS) as determinant factors. The central aim of the study is to investigate the behavior of Nigeria’s aggregate import demand and its determinant (function) and then analyse the data from the period 1970 to 2008 and based on the
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Final exam MACROECONOMICS 1) Among the fundamental concepts in economics are A) opportunity cost. B) marginalism. C) efficient markets. D) all of the above 2) Which of the following is NOT an opportunity cost of attending college? A) the tuition you pay B) the income you could have earned if you didn't attend college C) the alternative uses of the time you spend studying D) the cost of the food that you consume while you are attending college 3) A market in which profit opportunities
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production function, b. the size of the labor force, c. the real quantity of government purchases, d. the spending and saving decisions of consumers (affecting the IS curve or the FE line) (2) Nominal shocks are shocks to money supply or demand (affecting the LM curve) b. The largest role is played by shocks to the production function, which the text has called supply shocks, and RBC theorists call productivity shocks (1) Examples: a. Development of new products or production
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Microeconomics Supply and Demand . . . . . . . . . . . . . . . . . . . . . . . . The Demand Schedule . . . . . . . . . . . . . . . . . . . . The Supply Schedule . . . . . . . . . . . . . . . . . . . . . Equilibrium of Supply and Demand . . . . . . . . . . . . . Elasticity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The price elasticity of demand . . . . . . . . . . . . . . . . The income elasticity of demand . . . . . . . . . . . . . . . The cross-price elasticity of demand . . . . . . . .
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Economic Definitions Worksheet 1. Gross Doemstic Product (GDP) GDP is a flow concept that measures final aggregate output per year for a given country. Even though GDP is reported quarterly; it is annualized, meaning it is reported as an estimate for the entire year. Final production includes the value of all goods and services produced by all companies withing that given country. 2. Real GDP Real GDP
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supply determines demand and, in turn, demand determines prices b. demand determines supply and, in turn, supply determines prices c. the allocation of scarce resources determines prices and, in turn, prices determine supply and demand d. supply and demand determine prices and, in turn, prices allocate scarce resources 3. Which of the following statements is correct in regards to market economies? a. Buyers determine supply and sellers determine demand. b. Buyers determine demand and sellers determine
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focuses on modification of the manufacturing process with the desired out come of shorter lead times, improved forecasting and reduction of safety stock requirements. Design for delayed differentiation can be used to address the uncertainty in final demand, even if forecasts cannot be improved. What is delayed differentiation and can Hewlett-Packard use delay differentiation to address the problem described in the case? The Institute of Supply Management’s glossary of key supply management terms
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What is the subject matter of economics? What role does the “division of labor” play in defining this subject matter? The subject matter of economics deals with social science concerned with administration of scarce resources. These resources can be objects and services that are capable of satisfying human needs and wants in both direct and indirect ways. This can be by helping to produce other objects and services whose use satisfies human wants. The administration of resources does not always
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according to which consumers form habits on a good-by-good basis. Under deep habits, firms face more elastic demand functions in markets where nonhabitual demand is high relative to habitual demand, creating an incentive to price discriminate. We refer to this type of price discrimination as pricing to habits. In the presence of pricing to habits, innovations to domestic aggregate demand induce a decline in markups in the domestic country but not abroad, leading to a departure from the law of one
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