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esther sikale is a well known farmer from southern province of zambia farmers association to agree on to supply their farm onions and tomatoes each farming season he gathers his fellow farmers to discuss on the best onion and tomato pricing model as a student of principals of economics,asses the above scenario and appropriately use the zambia statute to discuss the above behavioral economics.
1. Brief note. Derive AD curve using IS-LM model and explain in words.
2. Brief note. Explain why long-run aggregate supply schedules are drawn vertically and short-run AS schedules are upward-sloping.
Suppose that an economy is in a recession, and assume that the IS curve is relatively flat. If you were to advice policymakers on which action to take to overcome the recession, what would be your recommendation? Show the results graphically with an explain.
Describe how and why the multiplier and the interest sensitivity of aggregate demand affect the slope of the IS curve
1. Explain the effect on the production of ice cream, if the price of raw milk decreases.
evaluate the advantages and disadvantages to a mobile phone manufacturer of internal growth? 12marks
given two goods named Omega & Alpha, with Omega along the vertical axis, and Alpha on the horizontal. Assume that the budget is constant at 100 pesos, the price of good Omega is fixed at 5 pesos. If the price of alpha changes from 1 peso to 2 pesos. What is the direction of change of quantities bought of alpha price increases
income and aggregate spending are affected by the following
a) ‘government should step in and spend’
b) A cut in spending by European firms
