ECON 1116 Lecture 3: LECTURE 3

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ultramarineraven883

13 Feb 2019

School

Northeastern University

Department

Economics

Course

ECON 1116

Professor

Michael P.Stone

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Document Summary

Property rights : an economic agent"s bundle of rights as they pertain to a tangible or intangible entity right to use an asset, exclude others from using an asset, dispose of an asset (=sell it) Demand curve: a curve that shows the relationship between the price of a product and the quantity of the product demanded. Quantity demanded : the amount of a good or service that a consumer is willing and able to purchase at a given price. Law of demand inverse relationship between price and demand. Change in demand change in quantity demanded (non-price event) (price event) Demand curve shifts towards the right (d d") Supply curve : a curve that shows the relationship between the price of a product and the quantity of the product supplied. Change in supply change in quantity supplied (non-price event) (price event) Supply curve shifts towards the right (s s") = expectation example : demand less now because sales in 2 weeks.

Related Questions

Which of the following is the correct definition of demand schedule?

a. The quantity of a good or service that a consumer is willing to purchase at a given price.

b. A table showing the relationship between the price of a product and the quantity of the product demanded.

c. A curve that shows the relationship between the price of a product and the quantity of the product demanded.

maroonferret252

1. Discuss the difference between an increase in the aggregate demand curve and an increase in the quantity of real GDP demanded. Include a discussion of how the price level relates to each event.

2. What are the major factors that determine investment, and what impact does each have on aggregate demand?

3. Describe the difference between a microeconomic demand curve and an aggregate demand curve.

4. The aggregate demand curve portrays the relationship between the price level and real GDP. What are the three reasons this relationship is a negative or inverse relationship? Provide brief illustrations of each.

5. Explain how changes in the stock of capital affect aggregate supply.

6. What is the natural level of output?

periwinklecrow416

1. Discuss the difference between an increase in the aggregate demand curve and an increase in the quantity of real GDP demanded. Include a discussion of how the price level relates to each event.

2. What are the major factors that determine investment, and what impact does each have on aggregate demand?

3. Describe the difference between a microeconomic demand curve and an aggregate demand curve.

5. What role do imports play in aggregate demand? Under which conditions will changes in imports expand aggregate demand? Reduce aggregate demand?

6. Shifts in the Aggregate Supply Curves

List and discuss the things that will make the Short Run Aggregate Supply curve shift to the left or to the right. Illustrate.

List and discuss the things that will make the Long Run Aggregate Supply curve shift to the left or to the right. Illustrate.

7. What is the natural level of output?

scarletraven382

ECON 1116 Lecture 3: LECTURE 3

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