- Study guides, Class notes & Summaries

short run - ️️-many prices are sticky at a predetermined level -the economy behaves very differently when prices are sticky IS-LM model of aggregate demand and supply - ️️what most mainstream economists use to think about the economic fluctuations and policies to stabilize the economy, shows how aggregate demand output are determined quantity equation - ️️MV=PY -implies an inverse relationship between both sides downward sloping AD curve - ️️-increase in the price level ca...

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5 pages

Written in 2024/2025

Grade A+

ACADEMICMATERIALS

Budget Constraint - ANSWERI = pxX + pyY or •y= (I/py) - (px/py) (X) Vertical intercept - ANSWERI/py Horizontal intercept - ANSWERI/px Budget line - ANSWERthe set of all bundles of goods/services that exhausts an individual's income. Both good goods/bad goods - ANSWERdownward sloping IC One bad good and one good good - ANSWERupward sloping IC Good x is bad or good, good y is neutral - ANSWERvertical sloping IC good x is neutral, good y is bad or good - ANSWERhorizo...

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5 pages

Written in 2024/2025

Grade A+

papersbyjol

ECON 410 EXAM 3 QUESTIONS AND ANSWERS ALREADY PASSED LATEST UPDATE GDP Growth - Answers GDP grows ~3% annually long-term but fluctuates short-term. Consumption Fluctuation - Answers Consumption fluctuates less, investment more than GDP. Unemployment Trends - Answers Unemployment rises in recessions, falls in expansions. Okun's Law - Answers Negative relationship between GDP and unemployment. GDP on the X axis, unemployment on the Y. Long Run in Macroeconomics - Answers Prices are flexib...

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4 pages

Written in 2025/2026

Grade A+

joshuawesonga22