投資(ECON) 一問

haha fung is hilarious
i mean
his economics is great !

2014-07-09 16:14:24 補充：
honestly
macro is easier than micro i admit

i) As the rate of return increased, the incentive to invest increased, so the investment expenditure increased. (1)

ii) Show in the diagram:
Money supply curve shifts to the left (1)
Nominal interest rate increases (1)

Verbal elaboration:
If the central bank reduces the money supply, the nominal interest rate will increase. (1)
Entrepreneurs will borrow less money for investment. Investment expenditure will decrease. (1)

iii)
Verbal elaboration:
In the short run, as the investment expenditure decreased, aggregate expenditure decreased. (1)
Therefore, the real national income will decrease. (1)
The general price level decreased, so the nominal national income decreased. (1)
In the long run, wages will become flexible again. The wages of workers will decrease. (1)
The short-run aggregate supply will increase. (1)
Thus the real national income will increase. (1)
The general price level will decrease in the long run. Therefore, the nominal national income will decrease. (1)

Show in the diagram:
AD curves shifts to the left (1)
Y decreases in the short run (1)
GPL decreases in the short run (1)
SRAS curve shifts to the right (1)
Y is unchanged in the long run (1)
GPL decreases in the long run (1)

你打開本叫MARCO ECON 睇吧..太簡單