2023 One of the uses of economic models is to predict what will happen in different situations | Assignments Online
2023 One of the uses of economic models is to predict what will happen in different situations | Assignments Online
Assignments Online 2023 Business Finance
One of the uses of economic models is to predict what will happen in different situations. The AS/AD model can be used to predict what will happen to Real GDP and the Price Level (inflation) given a scenario.
Presume a Zombie Apocalypse will occur.
Describe how it will affect one of the major economic variables (consumption, investment, government expenditures, imports and exports, capital, profits, labor force, banking, money…)
Will the affect primarily change AS or AD? Why and How?
What would be the expected affect on Real GDP and the Price Level?
You may do this for 2 different economic variables.
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