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2. Give examples of factors that decrease short-run aggregate supply. Which way does the SAS curve shift?

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter10: Bringing In The Supply Side: Unemployment And Inflation?

Section: Chapter Questions

Problem 1DQ

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2. Give examples of factors that decrease short-run aggregate supply. Which way
does the SAS curve shift?

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The short run aggregate supply curve was constructed assuming that as the price of outputs increases, the puce of inputs stays the same. How would an increase in the prices of important inputs, like energy, affect aggregate supply?
3. Did the Covid-19 recession shift the aggregate supply (AS) curve? If so, how?
4. Under what circumstances a long-run aggregate supply curve would shift either to the right or left? Provide some real world examples.
3. What is the difference between the long-run aggregate supply (LRAS) and the short-run aggregate supply (SRAS) curves? Give examples of factors that decrease SRAS. Which way does the SRAS curve shift?
If potential GDP increases, what happens to aggregate supply? Doesthe LAS curve shift or is there a movement along the LAS curve?Does the SAS curve shift or is there a movement along the SAS curve?
Which of the following would cause the short-run aggregate supply curve to shift to the right? O A. retired workers reentering the labor force O B. increases in government regulation OC. higher energy prices OD. an increase in taxes
3. Explain whether each of the following events will increase, decrease, or have no effect on longrun aggregate supply in your country. a. There is an increase in immigration into your country. b. Your government introduces a minimum wage above the market-clearing wage rate. c. Intel invents a new and more powerful computer chip. d. A severe flood damages factories.
Help in 10 minutes -(need help placing the points and lines and labeling. )
End of Chapter 3.5a Questia The graph shows the economy in long-run equilibrium at point A. LRAS, SRAS, Now assume that there is a large increase in demand for U.S. exports. 1.) Use the line drawing tool to show the resulting short-run equilibrium on your diagram. Label any new aggregate demand or aggregate supply curve as AD2, SRAS, or LRAS, as appropriate. 2.) Use the point drawing tool to locate the new short- run equilibrium point. Label this point B. Now consider the adjustment of the economy back to long-run equilibrium. 3.) Use the line drawing tool to show the resulting long-run equilibrium on your diagram. Label any new aggregate demand or aggregate supply curve appropriately. 4.) Use the point drawing tool to locate the new long- run equilibrium point. Label this point C. Carefully follow the instructions above, and only draw the required objects. AD1 Real GDP (trillions of 2012 dollars) Click the graph, choose a tool in the palette and follow the instructions to create your…
hello, please help, I know for sure that answer " left; decrease" is wrong
2. Explain the determinants of the aggregate demand (AD) and describe how the AD curvewill shift when one of these determinants changes.
Someone answer this question asapA decrease in the expected price level shifts short-run aggregate supply to the A. left, and an increase in the actual price level shifts short run aggregate supply to the left. B. right, and an increase in the actual price level shifts short run aggregate supply to the right. C. right, and an increase in the actual price level does not shift short-run aggregate supply. D. left, and an increase in the actual price level does not shift short-run aggregate supply.