This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A shift in the aggregate planned expenditure curve as a result of an increase in the price level ... (Read 108 times)

Frost2351

  • Hero Member
  • *****
  • Posts: 557
on: Jun 29, 2018
A shift in the aggregate planned expenditure curve as a result of an increase in the price level results in
 
  A) no movement along the aggregate demand curve and no shift in the aggregate demand curve.
  B) an upward movement along the aggregate demand curve.
  C) a downward movement along the aggregate demand curve.
  D) a rightward shift in the aggregate demand curve.
  E) a leftward shift in the aggregate demand curve.

Question 2

Explain the shoe-leather costs of inflation.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

annierak

  • Sr. Member
  • ****
  • Posts: 340
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

When prices rise rapidly during anticipated inflation, people with money spend time finding goods to purchase to get rid of money. Households and firms also spend time finding others to barter goods for goods and spend time watching foreign exchange rates to be able to trade falling value domestic currency for constant value foreign currencies. These activities are costly, in part because they force people to spend time dealing with the rapidly falling value of money. The costs that people incur from running around to get rid of money are the shoe-leather costs.


Frost2351

  • Member
  • Posts: 557
Reply 2 on: Jun 29, 2018
:D TYSM

coreycathey

  • Member
  • Posts: 333
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Evolutionary shift in plant life cycle stage dominance. Evolutionary shift in plant life cycle stage dominance.
Primary production increases with an increase in total phosphorus concentration. Primary production increases with an increase in total phosphorus concentration.
China’s 8% annual increase in oil consumption China’s 8% annual increase in oil consumption
Urinometer. In this procedure, a urine sample and urinometer are placed within a tube, and the liqui Urinometer. In this procedure, a urine sample and urinometer are placed within a tube, and the liqui
A sigmoid (cooperative) binding curve A sigmoid (cooperative) binding curve
Stand in a doorway and hook your fingertips on both sides about chest level or lower. Stand in a doorway and hook your fingertips on both sides about chest level or lower.
Video: Lower Limb Arteries Animation

For a complete list of videos, visit our video library