Which of the following would cause the aggregate price level to fall and the equilibrium level of real GDP to increase in the short run? Question 12 options: a) the short-run aggregate supply curve shifts left b) aggregate demand shifts right c) aggregate demand shifts left d) the short-run aggregate supply curve shifts right
Q: Cost-push inflation occurs when the: aggregates demand curve shifts leftward while the aggregate…
A: Cost pull inflation occurs when the aggregate supply curve shifts leftward while the demand curve is…
Q: A decrease in the expected price level shifts only the long-run aggregate supply curve right. only…
A: The long run aggregate supply curve is a vertical line representing the potential GDP level, which…
Q: Starting with a short run and long run equilibrium, assume a war breaks out, then," a.government…
A: Short-run equilibrium occurs at the intersection point of the short-run aggregate supply (SRAS) and…
Q: A long-run equilibrium occurs when aggregate demand and aggregate supply are in equilibrium ____ a)…
A: In the long run, the actual GDP of an economy and the associated price levels are determined by…
Q: An adverse or negative supply shock causes the aggregate __________ curve to shift to the…
A: Unexplained shocks that occur in the supply chain result in a sudden increase in cost or damage to…
Q: An increase in the price of energy would a- shift the short-run aggregate supply down/right b-…
A: The aggregate supply curve shows the total quantity of output that firms will produce and sell at…
Q: Stagflation is caused by a Group of answer choices rightward shift in the aggregate demand curve.…
A: Stagflation may be a period of rising inflation but falling output and rising unemployment.…
Q: terms of the aggregate supply curve, which of the following statements is true? Question 37…
A: Short run aggregate supply curve is always upward sloping because nominal wages are sticky and there…
Q: Assume that the United States economy is currently in a recession in a short-run equilibrium. Draw…
A: When the economy is in recession, real GDP is less than potential GDP.
Q: The aggregate supply curve for the long run is: Group of answer choices Represents potential output,…
A: Long-run:- The term "long-run" refers to the amount of time it takes for nominal wages and other…
Q: In the upward-sloping segment of the aggregate supply curve, a. producers can hire more workers…
A: The aggregate supply is total supply by all producers. The supply slopes upward signifying positive…
Q: Determine whether each of the following would cause a shift of the aggregate demand curve, a shift…
A: The aggregate demand curve is the horizontal summation of the individual demand curves of all the…
Q: If oil prices rose at the same time that the federal government decreases taxes in the short run…
A: Demand: - Demand is the relationship between the quantity demanded and the price of a good. There is…
Q: The effects of a higher than expected price level are shown by shifting the short-run aggregate…
A: The prices that the firms expect to charge is called the expected price-level. Inflation can lead to…
Q: The aggregate supply curve is probably better thought of as a price/output response curve. Select…
A: Aggregate supply refers to the total value of goods and services available for purchase at a…
Q: Members of Congress are interested in increasing the minimum wage from its current rate of $7.25 an…
A: A minimum wage law gives rise to unemployment in the economy as the wage set by the government is…
Q: In the long run, the price level is determined by a. the short-run aggregate supply curve and…
A: In the long run, the price level is determined by the short-run aggregate supply curve and the…
Q: The effects of a higher than expected price level are shown by Answer shifting the short-run…
A: Short run It is a period during some of the factor prices(specially labor) remains fixed by an…
Q: Which of the following must be true in the long run? Production increases when prices increase. An…
A: In the long run, the price of the goods and the wages are flexible in the market, that is why the…
Q: The upward slope of the short-run aggregate supply curve is based on the assumption that: 1)…
A: When talking about aggregate demand and aggregate supply, the slope of thise curves depends upon…
Q: An increase in price expectations shifts the long-run aggregate-supply curve to the left True/False
A: # While making the final purchases, we often has to keep some reference points. Such reference…
Q: The long-run aggregate supply curve is... A) Upward sloping at the potential GDP level B) Vertical…
A: Aggregate supply curve shows combinations of price and quantity of output supplied in the economy.
Q: What effect will each shift have on price levels and quantities? Decrease in Aggregate Demand…
A: Aggregate demand shows the total quantity of goods and services demanded at different price levels.…
Q: A large reduction in oil prices will cause: Group of answer choices a leftward shift in the…
A: The relationship between aggregate price level and aggregate output demanded by all the people in…
Q: The effect of an increase in the price level on the aggregate-demand curve is represented by a a.…
A: Answer to the question is as follows :
Q: The following events have occurred in the history of the United States: A deep recession hits the…
A: If a deep recession hits the world economy then the demand for US exports will fall. As the exports…
Q: The short-run aggregate supply curve will shift to the right. The aggregate demand curve will shift…
A: Aggregate demand (AD): - It is the total demand of goods and services in an economy at a particular…
Q: An increase in the price of an imported resource will cause, Group of answer choices: The aggregate…
A: Aggregate supply represents the total quantity of output supplied at each price level. The…
Q: The long-run aggregate supply curve is upward-sloping and becomes steeper at output levels above…
A: Aggregate supply represents the total goods and services that producers produce and sell in the…
Q: se the model of aggregate demand and short-run aggregate supply to explain how each of the following…
A: Hey, Thank you for the question. According to our policy we can only answer up to 3 sub parts per…
Q: aggregate price level and aggregate output Severe weather in Mpumalanga and Limpopo in January 2021…
A: Aggregate supply is a macroeconomic concept that helps in determining the total number of quantity…
Q: "The oil price run - up of 2007 - 08 was caused by strong demand confronting stagnating world…
A: If the oil price rises, then the cost of production will increase. Therefore, the supply of…
Q: Refer to the diagram. The initial aggregate demand curve is AD1 and the initial aggregate supply…
A: The aggregate supply curve represents the total supply of goods and services by an economy at each…
Q: Since an increase in inflation reduces planned spending and short-run equilibrium output: the…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 1)Potential output is the same as long-run aggregate supply. Select one: True False
A: Hey, Thank you for the question. According to our policy, we can only answer 1 question per session.…
Q: f the economy begins at a short-run equilibrium below potential output, then there would be a-…
A: In short run equilibrium at a given price, the total amount the firms wish to supply is equal to the…
Q: Which of the following shifts the long-run aggregate supply curve to the left? Either an increase…
A: The long-run aggregate supply is always a vertical curve as the potential output is not related to…
Q: Find the attached file.
A: Gross domestic product refers to the total amount of all the goods, and services which are produced…
Q: The Great Depression showed that the short-run aggregate supply curve and the aggregate demand curve…
A: Prior to Great Depression the economy was working on Classical economic theory that assumes the…
Q: Assuming aggregate demand remains constant, supply shocks that cause a leftward shift in the…
A: Demand is desire backed by the ability and the willingness of the consumers to pay for the…
Q: Question 26 The effects of a higher than expected price level are shown by Answer shifting the…
A: Question 26: Supply refers to the relation between the price of the commodity and the willingness of…
Q: hifts in the Aggregate Supply Curves List and discuss the things that will make the Short Run…
A: Supply shocks are occasions that shift the aggregate supply curve. We characterized the AS bend as…
Q: When production costs rise, in the short run: A. the aggregate-supply curve shifts down to…
A: The aggregate supply (AS) the sum total amount of commodities and services produced in an economy at…
Q: Researchers in an oil producing country discover a cost effective method using existing levels of…
A: As given that, researchers in an oil producing country discover a cost effective method using…
Q: Price Level Prices for plastic, a key input in many industries, have decreased due to new technology…
A: Aggregate demand is a macroeconomic term that refers to the total demand for goods and services over…
Q: Identify three positive demand shocks that would increase aggregate demand and three negative demand…
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Which of these will shift the short-run aggregate supply curve to the right? an increase in the…
A: Short run Aggregate supply curve is an upward sloping curve, depicting positive relation between…
Question 12 options:
|
|
||
|
|
||
|
|
||
|
|
Step by step
Solved in 2 steps
- Multiple choice Question one3 Carefully explain what is happening in the following market. Indicate the impact , if any on demand, supply,price and quantity. Chose from the following what will happen to each ; increase towards equilibrium, no impact,excess supply, change in price uncertain, decrease equilibrium quantity, increase equilibrium price, change in quantity uncertain, decrease towards equilibrium, decrease equilibrium price, shift outward to right, shift inwards to left , excess demand , increase towards equilibrium. 1a) In Academics year 2020/21 , the university of the west indies mandated that all students must take principles and economics as a core requirement for their major. Concurrently , the university bookshop made their order for the principle and economics text books based on the number of registered students in the last academic year (2019/2020).1b) The price of input for the production of BrandX handbags have increased .Concurrently, taste and preferences has…Suppose our economy is in macroeconomic equilibrium (also called "general equilibrium") with an upward-sloping aggregate supply curve and a downward-sloping aggregate demand curve. An increase in aggregate demand will: Question 5 options: a) Increase aggregate supply. b) Decrease the price level. c) Causes the aggregate supply to shift to the right. d) Increase real GDP. e) Reduce the number of discouraged workers in the unemployment rate.Question 1A recent article published by the Federal Reserve (the central bank of the USA), suggests “the massive lockdown of the economy” has led to “a large negative demand shock. However, an accompanying increase in unemployment benefits has increased the income of some low- and middle-income households at least temporarily, which could helpfully support aggregate demand”. The excerpt above suggests an increase in household income, which might lead to improved aggregate demand. A) Draw a diagram to explain the above situation to show the impact of increased income and how it affects aggregate demand The article further states that “...supply chains in a number of industries have been affected not only internationally, with international trade in general greatly reduced, but also domestically, resulting in price increases for many goods and services”.B) In your opinion if prices of goods and services increase, what might be the impact on the aggregate supply of goods and services?…
- In 2004, the economy of Minitown had an aggregate demand and aggregate supply according to the following schedule: PRice level Aggregate Demand Short-run Aggregate supply Long run aggregate supply 100 $1625 $1205 $1370 110 $1550 $1270 $1370 120 $1475 $1335 $1370 130 $1400 $1400 $1370 140 $1325 $1465 $1370 150 $1250 $1530 $1370 160 $1175 $1595 $1370 What was Minitown’s short-run equilibrium output in 2004?Question 1A recent article published by the Federal Reserve (the central bank of the USA), suggests “the massive lockdown of the economy” has led to “a large negative demand shock. However, an accompanying increase in unemployment benefits has increased the income of some low- and middle-income households at least temporarily, which could helpfully support aggregate demand”. The excerpt above suggests an increase in household income, which might lead to improved aggregate demand. A) Draw a diagram to explain the above situation to show the impact of increased income and how it affects aggregate demand The article further states that “...supply chains in a number of industries have been affected not only internationally, with international trade in general greatly reduced, but also domestically, resulting in price increases for many goods and services”.B) In your opinion if prices of goods and services increase, what might be the impact on the aggregate supply of goods and services?…In 2013, the economy of Boonton had an aggregate demand and aggregate supply according to the following schedule: Price Level Aggregate Demand Short-Run Aggregate Supply Long-Run Aggregate Supply 80 $1405 $1075 $1365 90 $1370 $1150 $1365 100 $1335 $1225 $1365 110 $1300 $1300 $1365 120 $1265 $1375 $1365 130 $1230 $1450 $1365 140 $1195 $1525 $1365 What was Boonton’s long-run equilibrium output in 2013?
- In 2014, the economy of Greatstown had an aggregate demand and aggregate supply according to the following schedule: Price Level Aggregated Demand Short-run Aggregate Supply Long-run aggregate supply 30 $1455 $1275 $1400 40 $1420 $1300 $1400 50 $1385 $1325 $1400 60 $1350 $1350 $1400 70 $1315 $1375 $1400 80 $1280 $1400 $1400 90 $1245 $1425 $1400 Calculate Greatstown’s output gap.Answer the following questions on the basis of the following three sets of data for the country of North Vaudeville: (A) (B) (C) Price Price Price Level Real GDP Level Real GDP Level Real GDP 110 225 110 275 100 200 100 225 100 250 100 225 95 225 95 225 100 250 90 225 90 200 100 275 a. Which set of data illustrates aggregate supply in the immediate short run in North Vaudeville? (Click to select) ▼ The short run? (Click to select) V The long run? (Click to select) V b. Assuming no change in hours of work, if real output per hour of work increases by 5 percent, what will be the new levels of real GDP in the right column of B? Instructions: Enter your answers rounded to 1 decimal place. At a price level of 110: At a price level of 100: At a price level of 95: At a price level of 90: Does the new data reflect an increase in aggregate supply or does it indicate a decrease in aggregate supply? (Click to select)Which of the following will increase the Aggregate Demand curve or shift it to the right? The government passes a big infrastructure improvement spending bill O Interest rates rise The raises personal income taxes The U.S. population experiences a significant contraction in population, decreasing the number of people working and consuming. Question 2 Which of the following will decrease the aggregate supply curve or shift it to the left? New international sanctions on Iranian oil raise the price of oil globally and oil is an input in production of many goods and services A 10 percent across the board reduction in personal income tax rates Business taxes fall A new networking technology increases productivity all over the economy
- Your company sells wristwatches in three separate markets: China, Japan and Korea. The demand curves are 9c = 50 9j = 75 - - qk 100 4 2 Pc P₁ · Pk. a) Calculate and plot the inverse demand curve for each market. b) Calculate your aggregate demand curve. c) Calculate and plot your inverse aggregate demand curve.Assume that, in the market for iron, all of the supply comes from iron mining firms, which own mines that contain limited quantities of iron. Most of the demand comes from steel manufacturers. Suppose that a new economic report predicts that world economic growth will greatly exceed previous projections, causing the price of iron to double in a year. What effect does this have upon the current market for iron? Select 2 correct answer(s) Question options: Supply shifts left. Supply shifts right. Demand shifts left. Demand shifts right. SELECT 2 ANSWERS PLEASE!Show the effect this shock has on the market for almonds by shifting the demand curve, supply curve, or both. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per ton) 40 32 32 Supply Demand 24 24 16 8 0 8 16 24 Demand QUANTITY (Thousands of tons) 32 40 Supply One of the growers is pleased with the price increase caused by the pests because she believes it will lead to increased revenue. Using elasticities, you will be able to determine whether this price change will lead to a rise or fall in total revenue in this market. Using the midpoint method, the price elasticity of demand for almonds between the price levels of $20 and $28 per ton is between these two points, demand is . Thus, you can conclude that the grower's claim is due to the pestilence. meaning that because total revenue will Confirm your previous…