(0) ASP100) P Q 120 100 7 (D) AS(Pus) $560 500 440 P Q P $500 440 380 125 125 $620 100 100 MAL 175 TR 500 Suppose the full employment level of real output (Q) for a hypothetical economy is $500, the price level (P) initially is 100, and prices and wages are flexible both upward and downward. Refer to the accompanying short run aggregate supply schedules. In the long run, an increase in the price level from 100 to 125 will O increase real output from $500 to $560 (C) AS(P) Q O change the aggregate supply schedule from (a) to (c) and result in an equilibrium level of real output of $560 O decrease real output from $500 to $440 O change the aggregate supply schedule from (a) to (b) and result in an equilibrium level of real output of $500

(0) ASP100) P Q 120 100 7 (D) AS(Pus) $560 500 440 P Q P $500 440 380 125 125 $620 100 100 MAL 175 TR 500 Suppose the full employment level of real output (Q) for a hypothetical economy is $500, the price level (P) initially is 100, and prices and wages are flexible both upward and downward. Refer to the accompanying short run aggregate supply schedules. In the long run, an increase in the price level from 100 to 125 will O increase real output from $500 to $560 (C) AS(P) Q O change the aggregate supply schedule from (a) to (c) and result in an equilibrium level of real output of $560 O decrease real output from $500 to $440 O change the aggregate supply schedule from (a) to (b) and result in an equilibrium level of real output of $500

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Gg.13.
If investment increases by 24 billion and the economy's MPC is 0 0.5, the aggregate demand curve will shift rightward by _____ billion dollars at each price level.
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“Members of Congress are interested in increasing the minimum wage from its current rate of $7.25 an hour to $15. What effect will this have on the unemployment rate for low-skilled workers? How is this likely to impact equilibrium output and the price level in the short run?"
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