2. Possible causes of the shift in AS from ASo to AS1 in Figure D, include: a) an embargo on petroleum imports to this economy. b) a "tight money" policy of the Federal Reserve. c) higher wage demands by labor unions. d) all of the above. e) (a) and (c) only 3. Assuming that subscript "o" signifies the original position and subscript "1" the new position of the curves, which of these graphs depicts the scenario of a classical recession? a) Figure A b) Figure B c) Figure C d) Figure D Figure A Figure с 857380 60 40 20 10 60 50 40 30 20 10 0 P level 0 P level 0 10 10 20 30 40 real GDP = Q 20 30 real GDP = Q 40 ASO ADO -AD1- 50 ASO AS1 ADO 50 Figure B Figure D 60 50 40 30 20 10 0 60 50 40 30 20 10 0 P level 0 P level 0 10 10 20 30 real GDP = Q 40 20 30 40 real GDP = Q ADO ASO AD1 50 AS1 ASO ADO 50
2. Possible causes of the shift in AS from ASo to AS1 in Figure D, include: a) an embargo on petroleum imports to this economy. b) a "tight money" policy of the Federal Reserve. c) higher wage demands by labor unions. d) all of the above. e) (a) and (c) only 3. Assuming that subscript "o" signifies the original position and subscript "1" the new position of the curves, which of these graphs depicts the scenario of a classical recession? a) Figure A b) Figure B c) Figure C d) Figure D Figure A Figure с 857380 60 40 20 10 60 50 40 30 20 10 0 P level 0 P level 0 10 10 20 30 40 real GDP = Q 20 30 real GDP = Q 40 ASO ADO -AD1- 50 ASO AS1 ADO 50 Figure B Figure D 60 50 40 30 20 10 0 60 50 40 30 20 10 0 P level 0 P level 0 10 10 20 30 real GDP = Q 40 20 30 40 real GDP = Q ADO ASO AD1 50 AS1 ASO ADO 50
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![2. Possible causes of the shift in AS from ASo to AS1 in Figure D, include:
a) an embargo on petroleum imports to this economy.
b) a "tight money" policy of the Federal Reserve.
c) higher wage demands by labor unions.
d) all of the above.
e) (a) and (c) only
3. Assuming that subscript "o" signifies the original position and subscript "1" the new position of the curves, which of
these graphs depicts the scenario of a classical recession?
a) Figure A
b) Figure B
c) Figure C
d) Figure D
Figure
A
Figure
C
60
50
40
30
20
10
0
85788 0
60
50
40
30
20
10
0
level
0
10
P level
10
20 30
real GDP = Q
40
20 30 40
real GDP = Q
ASO
ADo
AD1-
50
ASO
AS1
ADO
50
Figure
B
Figure
D
60
50
40
30
20
10
0
60
50
40
30
20
10
0
P level
0
P level
0
10
10
20 30
real GDP = Q
20
30
real GDP = Q
ASO
40
AD1
ADO
40 50
AS1
ASO
ADO
H
50](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fd71a05-cce6-42ce-8872-636d0d92cbc9%2F661cfabe-4550-4717-8c9a-e70713162ac6%2F8zkmbjq_processed.png&w=3840&q=75)
Transcribed Image Text:2. Possible causes of the shift in AS from ASo to AS1 in Figure D, include:
a) an embargo on petroleum imports to this economy.
b) a "tight money" policy of the Federal Reserve.
c) higher wage demands by labor unions.
d) all of the above.
e) (a) and (c) only
3. Assuming that subscript "o" signifies the original position and subscript "1" the new position of the curves, which of
these graphs depicts the scenario of a classical recession?
a) Figure A
b) Figure B
c) Figure C
d) Figure D
Figure
A
Figure
C
60
50
40
30
20
10
0
85788 0
60
50
40
30
20
10
0
level
0
10
P level
10
20 30
real GDP = Q
40
20 30 40
real GDP = Q
ASO
ADo
AD1-
50
ASO
AS1
ADO
50
Figure
B
Figure
D
60
50
40
30
20
10
0
60
50
40
30
20
10
0
P level
0
P level
0
10
10
20 30
real GDP = Q
20
30
real GDP = Q
ASO
40
AD1
ADO
40 50
AS1
ASO
ADO
H
50
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