40.The Great Depression showed that the short-run aggregate supply and the aggregate demand curves: A. must always intersect at full employment. B.can never lead to deflation. C.can intersect at output levels below full employment. D.must intersect at output levels above full employment.

Q: Which of the following statements are true? Which are false? Explain why the false statements are…

A: The aggregate supply is the complete amount of products expected to be distributed by enterprises in…

Q: At which range the economy is producing at full employment according to the aggregate supply curve.?…

A: We know The economies around the globe tend to operate upon the activities done by various entities.…

Q: An increase in aggregate demand will cause the unemployment rate to _______, the GDP growth rate to…

A: Aggregate demand refers to the total demand for goods and services in the economy by all the…

Q: A movement down and to the left along the aggregate supply curve will occur when   a. a change in…

A: Aggregate supply curve depicts the total output produced and served by the producers of a country.…

Q: The short-run aggregate supply curve will shift up if-------. Select one: a. government spending…

A: The short-run aggregate supply curve is an upward sloping curve. While the long-run aggregates…

Q: The economy is in long-run equilibrium when a. Aggregate demand intersects short-run aggregate…

A: When the economy is operating at potential Gross Domestic Product, the unemployment rate is at the…

Q: Which of the following would most likely shift the aggregate demand curve to the left? OA Increased…

A: Meaning of Aggregate Demand and Aggregate Supply: The term aggregate demand refers to the…

Q: m price level will fall, and the equilibrium level of GDP will fall.   B. Aggregate demand will…

A: 1. When consumers and businesses tend to have negative expectations about the future level of…

Q: Some economists maintain that the returns to additional years of education is actually quite small…

A: The sheepskin effect is a phenomenon where the person with an academic degree or diploma gets higher…

Q: Decide if the following events are Micro, shifting supply or demand, or Macro, shifting AD or AS.…

A: The branch of economics which studies the behaviour of individuals is called microeconomics.…

Q: Which of the following explains why the long-run aggregate supply curve corresponds to the…

A: PPC demonstrates different amount of two commodities that a nation can produce with its available…

Q: The aggregate supply curve shows the relationship between real GDP and the average price level. a.…

A: Aggregate Supply  The total output of finished products and services produced by the domestic…

Q: 1. Assume a nco-classical aggregate supply model with both long run and short run aggregate supply…

A: Short-run alludes to the time-frame in which the makers need more opportunity to change every one of…

Q: When the aggregate demand curve and the aggregate supply curve intersect,   A. the economy is in…

A: The aggregate demand curve shows all the combinations of the quantity of GDP and price level at…

Q: What is the most likely impact to the US economy of Europe entering a recession? Question 11Answer…

A: The objective of the question is to understand the impact on the US economy if Europe enters a…

Q: A looseningloosening of the labor market will cause A. the aggregate supply curve to shift down. B.…

A: This can be described as a form of labor market that typically means an increase in unemployment and…

Q: Along the short-run aggregate supply curve (SRAS), an increase (rightward shift) in the aggregate…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: The long-run aggregate supply (LRAS) curve is vertical because:     Answers: A.  The short-run…

A: The long-run aggregate supply curve depicts how the price level is related to the real GDP supplied…

Q: 17 The long-run aggregate supply curve shifts right if   a technology advances. b the capital stock…

A: The long-run aggregate supply curve shows the potential output of the economy in the long run. It…

Q: Assume that no policy action is taken. a. Show on your graph from part (a) the change in short-run…

A: The Full Employment Level of Output: The full employment level of output is the value of the real…

Q: F. The long run aggregate supply curve is vertical because output is unresponsive to the i. Price…

A: F. The long run aggregate supply curve is vertical because output is unresponsive to the i. Price…

Q: The short-term aggregate supply curve is the relationship between the amount of real GDP supplied…

A: Since you have posted multiple questions. But according to answering guideline, we are supposed to…

Q: a. How does real wage influence the labor market that ever aggregate supply (LRAS) and short run…

A: The aggregate supply of a country is the total amount of goods and services it produces and sells.…

Q: Which of the following leads to a rightward shift in the aggregate demand? a. General price level…

A: We know that aggregate demand is the sun of consumption spending , investment spending , government…

Q: The vertical portion of the aggregate supply curve shows that at full employment an increase in the…

A: Macroeconomics studies the economy as a whole. It analyzes the national income, employment,…

Q: Stagflation is caused by aa. leftward shift in the aggregate-demand curve.b. rightward shift in the…

A: Stagflation an economic situation where a high level of inflation and a high level of unemployment…

Q: Exhibit 14-2 Price Level A B Real GDP In Exhibit 14-2, which curve represents short-run aggregate…

A: The total quantity (Q) of goods and services that all firms in an economy are willing and able to…

Q: Refer to Figure. If the economy starts at c and 1, then in the short run, where does a decrease in…

A: Taxation imposed on goods results in higher investment as common people find it beneficial to invest…

Q: What three factors affect long-run aggregate supply? ​A. Natural Resources, Technology, and…

A: In the long run there are three factors that affect aggregate supply.

Q: what is a potential problem with a temporary tax decrease desighned to increase aggregate demand if…

A: The federal government's tax system depends on a devising a number of taxes in order to generate…

Q: Europe and Aisa both fall into deep economic recessions. What impact will this have on the U.S.…

A: There will be a shift in aggregate demand when there are changes in net exports. Any event that…

Q: 1) On the graph below, indicate and label the “Keynesian" and “Neoclassical" zones of the Aggregate…

A: Keynesian aggregate supply curve is an upward sloping curve, because, in short run the wage rate and…

Q: What is the most likely impact to the US economy of Europe entering a recession? Question 11Answer…

A: The objective of the question is to understand the impact on the US economy if Europe enters a…

Q: Suppose that the E.U. economy goes into an expansion. Canadian real GDP​ ________ and Canadian…

A: The expansion in the economy occurs when the economic activities are given a boost in the…

Q: Which of the following is likely to occur if an increase in legal immigrants significantly reduces…

A: Aggregate supply refers to the total quantity of output that all the firms produce within a given…

Q: The long-run aggregate supply curve reflects the amount of potential production when we are in full…

A: In an economy, macroeconomics deal with variables that Influence the economy as a whole and give…

Q: The horizontal segment of the Keynesian aggregate supply curve: A.depicts a negative relationship…

A: Aggregate supply is the output of goods which all firm of an economy is able to supply in a market…

Q: The aggregate supply shifts to the right if: A. supplies of resources increase. B. investment…

A: The aggregate supply curve movements to one side as productivity increases or the cost of key…

Q: 1. (Similar to Chapter 13, problem 38A.) Match the following terms with their definitions: 1.…

A: Keynesian economics introduced the concept of laissez-faire policy as economy will it self achieve…

Q: Assume the economy is in long-run equilibrium in 2019. Use the Aggregate Demand and Aggrecate Supply…

A: Since F part is missing, we'll be answering only C and D. Please resubmit the question with F part

Q: An increase in the aggregate demand for goods andservices has a larger impact on output _________and…

A: The increase in demand for goods and services will affect the output more in the short run. Because,…

Q: The short - run aggregate supply curve slopes upward. According to the sticky - wage theory of the…

A: The sticky-wage theory states that the wages of employees tend to be slow to adjust to changes in…