Questions from Managerial Economics

Q: Why does the short-run aggregate supply curve slope upward?

Why does the short-run aggregate supply curve slope upward?

Q: What causes the long-run aggregate supply curve to shift?

What causes the long-run aggregate supply curve to shift?

Q: Explain why the aggregate demand curve slopes downward and the short-

Explain why the aggregate demand curve slopes downward and the short-run aggregate supply curve slopes upward.

Q: : Starting from a situation of long-run equilibrium, what

Starting from a situation of long-run equilibrium, what are the short- and long-run effects of a permanent negative supply shock?

Q: Go to the St. Louis Federal Reserve FRED database, and

Go to the St. Louis Federal Reserve FRED database, and find data on corporate net worth of nonfinancial businesses (TNWMVBSNNCB), private domestic investment (GPDIC1), and a measure of financial frict...

Q: Identify changes in three factors that will shift the aggregate demand curve

Identify changes in three factors that will shift the aggregate demand curve to the right and changes in three different factors that will shift the aggregate demand curve to the left.

Q: What factors shift the short-run aggregate supply curve? Do

What factors shift the short-run aggregate supply curve? Do any of these factors shift the long-run aggregate supply curve? Why?

Q: How does the condition for short-run equilibrium differ from that

How does the condition for short-run equilibrium differ from that for long-run equilibrium?

Q: Describe the adjustment to long-run equilibrium if an economy’s short

Describe the adjustment to long-run equilibrium if an economy’s short-run equilibrium output is above potential output.

Q: What are demand shocks? Distinguish between positive and negative demand shocks

What are demand shocks? Distinguish between positive and negative demand shocks.