1200- 1100- 1000- 900- Price Level 800 700 600 500 400 300- 200- 100 LRASI LRAS2 100 200 300 400 500 600 700 800 9001000 Real GDP What is a possible cause for the long run aggregate supply to shift from LRAS1 to LRAS2? O A decrease in capital. O A decrease in labor. O An increase in the fertility rate O A global war.

1200- 1100- 1000- 900- Price Level 800 700 600 500 400 300- 200- 100 LRASI LRAS2 100 200 300 400 500 600 700 800 9001000 Real GDP What is a possible cause for the long run aggregate supply to shift from LRAS1 to LRAS2? O A decrease in capital. O A decrease in labor. O An increase in the fertility rate O A global war.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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50 45 ↑ases 40 35 30 25 20 15 10 5. 30 20 30 40 50 60 70 80 Refer to Figure 2-4. It is possible for this economy to produce 40 toothbrushes and 20 toasters. O 50 toothbrushes and 30 toasters. O 70 toothbrushes and 40 toasters. O All of the above.
2
A price-level increase, Ceteris Paribus, will: Select one: O a. cause an upward movement along the aggregate demand curve. O b. cause a downward movement along the aggregate demand curve. O c. cause a rightward shift of the aggregate demand curve. O d. have no impact on the aggregate demand curve. O e. cause a leftward shift of the aggregate demand curve.
P3
This graph is for the Canadian economy. Price Level a Select one: O Y₁ Real GDP What could have caused the increase in aggregate demand from AD1 to AD2? AD1 O O AD2 a. A higher Canadian dollar exchange rate. b. A decrease in the number of American tourists in Canada. c. An economic expansion in the United States. d. Less American direct investment in Canada. than those in Canada.
The basic difference between macroeconomics and microeconomics is: O microeconomics concentrates on the behaviour of individual consumers and firms while macroeconomics focuses on the performance of the entire economy O microeconomics concentrates on individual markets while macroeconomics focuses primarily on international trade microeconomics concentrates on the behaviour of individual consumers while macroeconomics focuses on the behaviour of firms O microeconomics explores the causes of inflation while macroeconomics focuses on the causes of unemployment
How does a real appreciation affect the quantities of imports and exports? Select one: O a. Imports rise; exports are unaffected. O b. Imports fall; exports fall. O c. Imports rise; exports rise. O d. Imports rise; exports fall. O e. Imports fall; exports rise.
Price level LRAS AS1 Figure 12.8 C B A ASO AS₂ AD₁ ADO E Y2 Yo Y₁ Aggregate output ($ billion) AD₂ Refer to Figure 12.8. This economy cannot continue to produce Y₁ (or at point B) because O the price of raw material will increase, shifting the aggregate demand curve to AD2. O all of the above O the price of raw material and wages will increase shifting the aggregate supply curve to AS₁. O the price of inputs will decrease, shifting the aggregate supply curve to AS2.
Please help with this practice question
In order to shift the vertical aggregate supply curve to the left, which of the following would have to occur? O expansion of potential GDP O increase in productivity flexible wage and price adjustments O breakdown of key market institutions