how to print barcode in crystal report using vb.net 3: Unemployment, In ation, and Income in Java

Making USS Code 128 in Java 3: Unemployment, In ation, and Income

CHAPTER 3: Unemployment, In ation, and Income
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Supply and demand curves may appear similar to aggregate supply and aggregate demand curves in graphs, but they are substantially different.
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An aggregate demand curve represents the collective spending of consumers, businesses, and government, as well as net foreign purchases of goods and services, at different price levels. An aggregate demand curve, like the demand curve in microeconomics, is negatively related to price, holding constant other factors that in uence aggregate spending decisions. Price, presented as price level in macroeconomics, affects aggregate spending because of an interest rate effect, a wealth effect, and an international purchasing power effect. The interest rate effect traces the effect that interest rate levels have upon aggregate spending. The nominal rate of interest is directly related to the price level, ceteris paribus. Increases in the price level push up interest rates, which usually will depress interest-sensitive spending. The wealth effect relates changes in wealth to changes in aggregate spending. The market value of many nancial assets falls as price level and interest rates increase. A higher price level will decrease the household sector s net wealth, lower consumer spending, and cause lower aggregate spending. A country s imports and exports are also affected by a changing price level, i.e., by an international purchasing power effect. When the price level increases in the home country and is unchanged in foreign countries, foreign-made commodities become relatively less expensive, the home country s exports fall, its imports increase, and there is less aggregate spending on the home country s output. An aggregate demand curve shifts when there is a change in a variable (other than price level) that affects aggregate spending decisions. Outward shifts (to the right) occur when consumers become more willing to spend or there are increases in investment spending, government expenditures, and net exports. Determinants of these factors will be taken up in the next chapter.
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28 PRINCIPLES OF ECONOMICS
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An aggregate supply schedule depicts the relationship of aggregate output and price level, holding constant other variables that could affect supply. There is some disagreement among economists on the shape of the aggregate supply curve. Three distinct curves can characterize this disagreement. The Keynesian aggregate supply curve is horizontal until it reaches the economy s full-employment level of output, at which point it becomes positively sloped. Others view the aggregate supply curve as always being positively sloped. The classical aggregate supply curve is vertical at the full-employment level, indicating there is no relationship between aggregate output and the price level. Changes in economy-wide resource availability, resource cost, and technology shift the aggregate supply curve. The aggregate supply curve shifts rightward when (1) improved technology increases the potential output of a given quantity of resources; (2) the quantity of economic resources increases; or (3) the cost of resources declines.
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Changes in Aggregate Output
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The effect of changes in aggregate demand and/or aggregate supply upon equilibrium output and the price level depends upon the shape of the aggregate supply curve. With a Keynesian aggregate supply curve, an increase in aggregate demand affects only output as long as the economy is below full-employment output, whereas an increase in aggregate supply has no effect upon either the price level or output. Increases in aggregate demand and/or aggregate supply affect both the price level and real output when aggregate supply is positively sloped, as can be seen in Figure 3-1. For a classical aggregate supply curve, increases in aggregate demand result in only a higher price level, whereas increases in aggregate supply result in a higher level of output and a lower price level. Example 3.1 Equilibrium real output is y1 and the price level is p1 for aggregate supply and aggregate demand curves AS and AD in Figure 3-1. Increased government spending shifts the aggregate demand curve outward to AD , and the point of equilibrium changes from E1 to E2. Equilibrium output increases from y1 to y2 as the price level rises from p1 to p2. When aggregate supply increases to AS and aggregate demand remains at AD ,
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