Suppose the economy is in equilibrium in the first period at point a. in the second period, the economy reaches point b. what policy would the fed likely pursue in order to move ad 2 to ad subscript 2 comma policy and reach equilibrium (point c) in the second period? (what policy will increase the price level and increase actual real gdp? )
2. use a debit card at grocery store and get money back
3. move money between bank accounts
4. physically withdrawl the money inside the bank.
5. grocery stores have customer service and for a fee you can withdrawl the money
the answer to the question is (b) economists are sharply divided into competing schools of thought with little overlap of ideas and beliefs.
interestingly, as a field, economics does not have many school of thoughts that directly competes with one another – most of them share some similar concepts – just a different way of executing them. some examples of school of thoughts in economics include marxian economics and neoclassical economics.
one important factor that vivian needs to consider is that demand changes as a result of changes in price, however, other factors could affect the demand for goods or services, examples are, changes in the price of related goods, the income of the people, changes in preference etc.
therefore, based on this fact, vivian should consider "price elasticity of demand." price elasticity of demand can be defined as a measurement used in economics to show the responsiveness or elasticity of the quantity demanded of a good or service to a change in its price when nothing but the price changes.
the correct statements are:an increase in price leads to a decrease in quantity demanded. a decrease in price leads to an increase in quantity demanded.
according to law of supply & demand:there is an inverse relationship between the price & quantity demanded. there is an direct relationship between the price & quantity supplied.