1.) Use the line drawing tool to show the effects of a positive aggregate demand shock that might result from consumers becoming more optimistic. Properly label this line. Price Level, P LRAS1 2.) Use the point drawing tool to identify the new short run equilibrium. Label this point 'B'. A SRAS1 AD1 Output, Y

1.) Use the line drawing tool to show the effects of a positive aggregate demand shock that might result from consumers becoming more optimistic. Properly label this line. Price Level, P LRAS1 2.) Use the point drawing tool to identify the new short run equilibrium. Label this point 'B'. A SRAS1 AD1 Output, Y

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A(I) and (ii) pls!
Refer to the graph to the right. The shift from AS, to AS, shown in the diagram is referred to as AS, AS, a(n) O A. decrease in unit costs. O B. negative aggregate supply shock. O. positive aggregate supply shock. OD. increase in unit costs. Real GDP Price Level
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8. Assume that there is an exogenous decline in the price of imported oil. Using the graphical analysis in this chapter, explain how such a shock would affect output and the price level. Explain the role inflationary expectations play in this adjustment.
PRICE LEVEL O a. C to D. Ob. D to C. Oc.B to A Od. A to B. D LRAS O B AD QUANTITY OF OUTPUT SRAS, SRAS AD Refer to Figure 34-2. If the economy is in long-run equilibrium, then an adverse shift in short-run aggregate supply would move the economy from
ans ences rations If in Year 1 the price level was 100 and real GDP was $20 trillion and in Year 2 the price level was 105 and real GDP was $21 billion, then the predominant change that occured in Year 2 was OA a decrease in aggregate demand. B. an increase (shift to the right) in short-run aggregate supply. OC. a decrease (shift to the left) in short-run aggregate supply OD. an increase in aggregate demand.
On the graph, label your starting AD line as AD 2019. Draw a new AD line showing the change to AD due to the pandemic. Label your starting SRAS line as SRAS 2019. Draw a new SRAS line showing the change to supply due to the pandemic.Label the new short-run equilibrium RGDP and Price Level. Does output (i.e. RGDP) increase or decrease in your model? Does the price level increase or decrease in your model? According to the AD-AS model when RGDP falls the unemployment rises and vice versa. Does your graph indicate an increase or decrease in the unemployment rate
Question Completion Status: ↳ A Moving to another question will save this response. Question 29 If the government decided to go to war on Russia, how would that impact the aggregate model? O a. This would not impact the aggregate model at all. O b. This would increase the price level which would shift the aggregate demand curve downwards. O c. It might shift the aggregate demand curve upward or to the right, and maybe shift the LRAS to the left. O d. It would shift the LRAS to the right. A Moving to another question will save this response. 1 2 # 3 4
In the extended analysis of aggregate supply, the short-run aggregate supply curve Multiple Choice O assumes that output prices are inflexible. O Is downsloping. is vertical assumes that output prices are flexible
Which of the following causes the short-run aggregate supply curve to shift to the right? O A. an increase in the expected price of an important natural resource B. a positive technological change O C. a higher expected future price level O D. a decrease in the capital stock
Solutions for c,d and e
Question 4 Refer to the information provided in Figure 12.1 below to answer the questions that follow. Not yet answered Marked out of 1.00 AD P Flag question AD AD Aggregate output (Y) Figure 12.1 Refer to Figure 12.1. Suppose the economy is at Point A. A can cause a movement to Point D. Select one: O a. decrease in the price level O b. increase in the price level increase in aggregate demand O d. decrease in aggregate demand Price level