24. If the short-run aggregate supply increases by less than the long-run aggregate supply, then,at the short-run equilibrium,A) GDP will be below potential GDP.B) aggregate demand will increase.C) GDP will be above potential GDP.D) GDP will be equal to the potential GDP25. A negative supply shock in the short run causesA) the aggregate supply curve shifts to the left.B) the price level to fall.C) unemployment to fall.D) equilibrium real GDP to rise.

Since you have asked multiple question, we will solve the first question for you. If you want any…

Answered: 24. If the short-run aggregate supply…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. How is the aggregate demand curve different from the demand curve for a single good, like hamburgers?
QUESTION 1 Aggregate Demand (AD) Is drawn with price level, average price for everything in the economy relative to the base year price, (not the dollar price) on the vertical axis and Real GDP demanded on the horizontal axis. Use the numbers from the following table and calculate the Real GDP Demanded using expenditure approach of GDP, and plot all the points on the Aggregate Demand. Connect all the points to draw the aggregate demand. [Review Chapter 5 powerpoints, textbook and Internet source to find what numbers have tolbe added to get each of the points In the Aggregate Demand curve.] (国 Real GDP Demanded (AD): C+l+G+ (X-M) Real GDP Supplied: Ageregate Supply (AS) $680 Price Level 110 $400 $185 $150 $55 $50 115 390 180 150 50 50 720 120 380 175 150 45 50 750 125 370 170 150 40 50 780 130 360 165 150 35 50 810 8.
In March 2020, as the Covid-19 recession hit the world, consumers became pessimistic about their future incomes. How did this increased pessimism affect the aggregate demand curve in the year 2020? Group of answer choices This will shift the aggregate demand curve to the right. This will move the economy down along a stationary aggregate demand curve. This will move the economy up along a stationary aggregate demand curve. This will shift the aggregate demand curve to the left.
Which of the following would increase aggregate demand? A) Increase in taxation. B) Increase in savings. C) Decrease in consumption spending. D) Increase in government spending.
An increase in government spending would affect GDP if ? the long-run aggregate supply is vertical the short-run aggregate supply is vertical the short-run aggregate supply is upward sloping the short-run aggregate supply is horizontal
Which of the following would cause the Aggregate Supply curve to move from AS to AS2 in the graph below? A) A general increase in energy and labor cost for businesses. B) A general decrease in labor cost for businesses. C) An increase in productivity. D) A federal government increase in spending.
None
Assume the aggregate demand and aggregate supply curve intersect at a price level of 100. Explain the effect of a shift in the price level to 120 and to 50

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24. If the short-run aggregate supply increases by less than the long-run aggregate supply, then, at the short-run equilibrium, A) GDP will be below potential GDP. B) aggregate demand will increase. C) GDP will be above potential GDP. D) GDP will be equal to the potential GDP