Flashcards
8 ~ AD/AS Analysis
Flashcards do conjunto (9)
- 1When does macroeconomic equilibrium occur?when AD intersects with SRAS
- 2What happens if PL is too high?there will be excess S of output and producers will experience ↑unsold stocks
- 3What happens if PL is too low?there will be excess D in the SR leading to a rundown (signal to firms to expand output)
- 4Graph that illustrates macroeconomic equilibrium?
- 5What happens if ↑AD?↑AD = ↑SRAS = a higher equilibrium of GDP
it also = cyclical ↑output, ↓U
- 6What happens if ↑SRAS?↑SRAS = ↑AD = higher equilibrium level of GDP
it also = ↑firms profits, ↑I
- 7What happens if ↓AD?↓AD = ↓SRAS = lower equilibrium level of GDP
- 8What happens if ↓SRAS?↓SRAS = ↓AD = lower equilibrium level of GDP
it also = ↓business profits, ↓I = ↓AD
- 9What are the consequences of ↓SRAS?brain drain = ↑PL
steep ↓I = ↓GDP growth
↑C of production from higher costs of commodities = ↓profits, ↓I, ↑U
Informações
- Descrição
- AS - Level Economics (Macroeconomics) FlashCards sobre 8 ~ AD/AS Analysis, criado por Tara Pugal em 23-04-2016.
- Criado por
- Tara Pugal · abr 2016
- Atualizado
- 19 mai 2016
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