Macroeconomics Answers

List some empirical example to support each theory which explain why the short run aggregate supply curve is upward sloping

How to shift aggregate demand and supply curve if srilanka farmers suffer a prolonged period of unfavorable weather conditions for agriculture

In the text we describe the effect of an open market purchase by the Fed.
a. Define an open market sale by the Fed.
b. Show the impact of an open market sale on the interest rate and output. Show both the Immediate- and the longer-term impacts.

With the aid of a diagram and using the Keynesian analysis , explain in detail how income and aggregate spending are affected by the following :
(a) ' government should step in and spend'
(b) A cut in spending by European firms

“We can have the GDP path we want equally well with a tight fiscal policy and an easier
monetary policy, or the reverse, within fairly broad limits. The real basis for choice lies in
many subsidiary targets, besides real GDP and inflation, that are differentially affected by
fiscal and monetary policies.” What are some of the subsidiary targets referred to in the
quote? How would they be affected by alternative policy combinations?

The relationship between the change of real output and the unemployment rate in the US economy was examined by Arthur M. Okun (1928-1980). How was the theory of business cycle placing an important position in his work? Elaborate