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    Suppose Mexico, one of our largest trading partners and purchaser of a large quantity of our exports, goes into a recession. Use the AD/AS model to determine the likely impact on our equilibrium GDP and price level.

    Since imports depend on GDP, if Mexico goes into recession, its GDP declines and so do its imports. This decline in our exports can be shown as a leftward shift in AD, leading to a decrease in our GDP and price level.

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Questions & Answers

What is accounting cost
Moulton Reply
what is minimum price
Patrick Reply
Why is it that when a price increases quantity demanded decreases?
Solomon Reply
That depends according to the budget of a consumer that he/she is able to buy at higher prices or not.
Manikrit
what is the relationship between quantity demanded and price of a commodity
Hackman Reply
the inverse relationship between Price of a commodity And its quantity demanded is explained by law of demand.
Rather
So what is the law of demands?
It states that if the price of a commodity is high the demand for that commodity will be less/low. Vice-versa
Mike
the law of demand states that all other things been equal as price increase quantity demand decrease as price decrease quantity demand increase
Ansah
what is elasticity of supply?
Ansah
what isThe law of demand
Rose Reply
The law of demand states that all other things being equal the higher the price of the commodity, the lower the quantity demanded of that particular commodity and the lower the price of the commodity the higher the quantity demanded of that particular commodity.
Sekyiwa
ok thanks
Rose
micro economics deals with household expenditures and the income from above while macroeconomics deals with total income and expenses a company handles
Israel Reply
can you please help me with some books like Health science
Mamadu Reply
no please
Mohammed
explain price control
MIRACLE Reply
The situation where the government fix prices above the equilibrium price
Rose
explain the term retirement lump sum
Gomotsegang
economics;is the study of how humans makes decision in the face of scarcity.
Odas Reply
What are means
Ruth-Lois
@Ruth-Lois what are you asking
Soita
he's asking a question
Mathias
exactly, I have not got her question
Soita
It refers to the resources used to satisfy end or wants.
Rose
thank you
Mathias
Thanks Rose🙏
Ruth-Lois
can we also define according to professor Lionel c Robin's
Awodeji Reply
if same amount of goods is supplied at higher prices
faizan Reply
what is economic
Arnolda Reply
Economic is a science which studies human behaviour as a relationship between end and scares means which has alternative uses
Oppong
What is demand Concept
Lukaku
Economics is a social science that studies human behaviour as a relationship between unlimited wants and scares resources which has alternative uses. economics is considered a social science because it uses scientific approach to study the behavior of human.
Moses
how can we identify demand
Bright Reply
through prices
Eldyne
value and cost
Israel
what are the factors affecting demand of acommodity
Ongiji Reply
what demand and supply
Ongiji
demand is the various quantity of goods or commodities that consumers are willing and able to buy at a given price over a period of time
Ansah
supply is the various commodities that sellers are willing and able to sell at a given price over a period of time
Ansah
factors of demand price of the commodity it self pice of other commodity size of the consumers income
Ansah
what are the factors that affect demand
Denis
avertissement level,level of income
Eldyne
The demand for a good depends on several factors, such as price of the good, perceived quality, advertising, income, confidence of consumers and changes in taste and fashion. We can look at either an individual demand curve or the total demand in the economy
Arzu
this is good!
Ajay
:)
Arzu
sure
Moses
hajaajajajajahhxhx
Arzu
what is the relationship between the demand of a good or service and the price paid for it?
Raihan
factors affecting demand are income of consumers, price of commodity,taste of preference etc...
Adwoa
with the aid of a diagram, explain the differences between change in demand and change quantity demand
KING Reply
with the aid of a diagram explain the difference between change in demand and change in quantity demanded
KING

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Source:  OpenStax, Principles of economics. OpenStax CNX. Sep 19, 2014 Download for free at http://legacy.cnx.org/content/col11613/1.11
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