ECO 372 Principles of Macroeconomics Week Three Team Assignment Aggregate Demand and Supply Models Linette Pugh, Jyenna Baeza University of Phoenix Online Professor: Leo Stevens Unemployment The United States is recovering from a recession and high unemployment numbers. As of December 2013 the Bureau of Labor statistics reported that unemployment is down 6.7% from 7%. The number of unemployed persons declined by 490,000 to 10.4 million in December, and the unemployment rate declined by
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Collaborative Consumption: Is it a disruptive business model? Introduction Airbnb (www.airbnb.com) started in August 2008 as a booking service letting private, spare space around the world, a marketplace that connects people who need temporary living spaces, to people who have extra spaces. The extra spaces could be a spare bed, a room, an apartment or even a villa. In five years’ time they now have over 10 million nights booked, have over 300,000 listings worldwide, operate over 33,000 cities
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will be used to check the stability of the model over time. Second, the index score for a particular country in a given year is calculated by summing its weighted indicator values. The New GCI model uses principal component analysis (PCA) to aggregate individual indicators (or categories of indicators).The premise of the PCA method is that within a “conceptual category,” indicators are highly correlated and related to the underlying phenomenon that is being measured.Within the area of microeconomic
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1. Results Interpretation: What do each of the following variance results tell us about the Clinic (i.e., what's the good news and what's the bad news)? Analyze in the aggregate and for each product line, as appropriate. If an analysis applies to more than one product line, you may combine product lines in your discussion for convenience. Use of bullet points are fine and, to the extent possible, encouraged. Profit (total) variance = actual profit – static profit Revenue= Member months
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Aggregate Demand This section gives you a platform for understanding issues such as inflation, economic growth and unemployment. Aggregate demand (AD) and aggregate supply (AS) analysis provides a way of illustrating macroeconomic relationships and the effects of government policy changes. Aggregate Demand The identity for calculating aggregate demand (AD) is as follows: AD = C + I + G + (X-M) Where C: Consumers' expenditure on goods and services: This includes demand for consumer durables
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Aggregate Demand and Supply Evaluate the extent to which an increase in aggregate demand may affect real output, inflation and unemployment. [25] Real output is an abbreviation for Real Gross Domestic Product or (Real GDP) is a macroeconomics measure of the value of economic output adjusted for price changes, this adjustment transforms the money-value measure, nominal GDP, into an index for quantity of total output. Inflation is the increase in general price level over a sustained period of
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CH 35 & 35 Practice Suppose the full employment level of real output (Q) for a hypothetical economy is $500, the price level (P) initially is 100, and that prices and wages are flexible both upward and downward. Use the following short-run aggregate supply schedules to answer the next question(s). 11. Refer to the information above. If the price level unexpectedly increases from 100 to 125, the level of real output in the short run will: A. rise from $500 to $560. B. fall from $500
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CHAPTER 2 THE AGGREGATE SUPPLY - AGGREGATE DEMAND MODEL The first formal macroeconomics model introduced by the text is called the Aggregate Supply - Aggregate Demand Model, which will hereafter be referred to as the AS/AD model. The AS/AD model is useful for evaluating factors and conditions which effect the level of Real Gross Domestic Product (GDP adjusted for inflation) and the level of inflation. The model is an aggregation of the elementary microeconomic supply-and-demand model discussed
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would be more likely that the aggregate demand curve shifted. This shift would represent an increase as it shifts to the right. 6. The graph depicts a shift with the aggregate demand cure moved to the right (outward), displaying an increase on real GDP per year. 7. If the price level of all U.S. goods increased, U.S. consumers would have to substitute with a generic or store brand. Even if the generic product ended up being pricy, then the quantity demand would go down. 8. If the
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see theStudent Handbook to reference the University’sgrading scale. Table of Contents Week Topic(s) Learning Objective(s) Reading(s) Assignment(s) 1 Introduction to Macroeconomics • LO 1: Describe the characteristics of demand and supply, and apply the demand and supply model. • LO 2: Define real gross domestic product and identify the phases of a business cycle. • LO 3: Define inflation and deflation, and explain how each affects the price and economic growth of an economy. • LO 4:
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