Question

Help with econ homework. MEDALS!

Answer 1

like damn no body answered yet lol I will start then itts either A or E no asnswer this lol not u drbgonzal lol but everybodu else

Answer 2

its not A

Answer 3

and I don't think its E either

Answer 4

but im absolutely sure its not A

Answer 5

lol I know im just starting the fire lol so people can answer quickly

Answer 6

thanks bro

Answer 7

and no prob @whpalmer4 @satellite73

Answer 8

http://www.khanacademy.org/economics-finance-domain/macroeconomics/aggregate-supply-demand-topic/aggregate-supply-demand-tut/v/shifts-in-aggregate-demand

This really helped me when I was going through econ, especially this part. As for the answer, I would say most likely it would be C , if it is not A, then it would have to be C because if consumption decreases then it would not really change the graph too much. and tax increase would cause the graph to go down. But I could be wrong

Answer 9

ok thanks, here's one more question that's very similar that might help answer the first one.

Answer 10

B. real income increases

Answer 11

what about the first one? I am confused between a and c

Answer 12

Well she knows it is not A. And C is the only other one that would make sense if it isn't A, cause B would cause the graph to go down, and D would cause the graph to go down, and E would also cause it to go down. C just makes the most logical sense to me

Answer 13

Yeah if I have to guess I will also go for A. But I don't understand the concept of velocity of money thought lol

Answer 14

this information could be wrong but check this out.

Answer 15

https://www2.bc.edu/~murphyro/EC204/PSAns/PS4Ans.pdf

Answer 16

"a. A decrease in the velocity of money will shift the aggregate demand curve to the
left (as discussed in question 1) and will lead to a decline in output in the short run."

Answer 17

velocity of money is basically the rate at which money circulates through an economy

Answer 18

velocity of money = (price level multiplied by real gdp)/ quantity of money

Answer 19

so it is controlled by interest rate, I get it now thanks

Answer 20

you can basically replace the quantity of money with any form for measurement like the M1 M2 M3

Answer 21

right

Answer 22

http://research.stlouisfed.org/fred2/release?rid=193

Answer 23

but that still doesn't answer the question whether this is valid: "a. A decrease in the velocity of money will shift the aggregate demand curve to the
left (as discussed in question 1) and will lead to a decline in output in the short run."

Answer 24

is there any way to browse the questions that you previously asked?

Answer 25

If i were you, I would just google it...