Econ

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Title: Econ

Essay Details:

Subject: Business

Author: David S

Date: August 21, 2012

Level: University

Grade: A

Length: 3 / 692

Essay text:

Firms will react to this by cutting back on production. The level of output will fall until the economy reaches the equilibrium. 3. If the Fed wants to increase the money supply through open market operation, the government can buy bonds in the market, then money supply will increase. When government hold bonds, public hold money. In short run, aggregate supply curve, it is upward sloping. The Aggregate Supply curve is relatively flat because in the short run, firms are assumed to supply all the output demand with small change of price because of sticky wage in SR, price increase, wage stable, real wage eventually drop because W/P = real wage...

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