WebEconomic fluctuation in the short run is one of the by-products of these cycles. There are variables in an economy such as demand, supply, income, labor, production, etc., which contribute to potential economic fluctuations. Economic fluctuations possess three main characteristics. The first characteristic is that in the short run, economic ... WebEconomics questions and answers. 1. Explaining short run economic flactuations A majority of economists believe that in the long run, real economic variables and nominal economic variables behave …
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WebJun 28, 2024 · Question #210653. . Explaining short-run economic fluctuations. Most economists believe that real economic variables and nominal economic variables behave independently of each other in the long run. For example, an increase in the money supply, a variable, will cause the price level, a variable, to increase but will have no long-run … WebHowever the new classical economists believe that the classical model can explain the short-run economic fluctuations. They believe that it is best to assume that prices are flexible even in the short-run. Almost all microeconomic analysis is based on the assumption that prices adjust to clear markets. New classical economists argue that ... mini office shredder
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WebIn the short run, GDP fluctuates around its trend. • recessions: periods of falling real incomes and rising unemployment • depressions: severe recessions (very rare) Short-run economic fluctuations are often called business cycles. Three Facts About Economic Fluctuations 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 WebSep 29, 2024 · Short Run: The short run, in economics, expresses the concept that an economy behaves differently depending on the length of time it has to react to certain stimuli. The short run does not refer ... Webarrow_back_ios. arrow_forward_ios. Please answer question 4 1.Draw Aggregate Demand, Short Run Aggregate Supply, and Long Run Aggregate Supply as if an economy is in both short run and long run equilibrium. 2. Suppose the price of oil (an input in the production of many goods) decreases. Show how this will affect the model starting from (1) above. motels in speculator new york