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8. Use the graphs provided to answer parts a-c a) Figure 10-4 b) Figure 10-5 c) Figure 10-6 LRAS LRAS SRAS LRAS| ,SRAS2 SRAS P SRASO J SRÁS, P AD AD AD Real GDP Goods and services market Real GDP Goods and Services Markets In the short-run equilibrium depicted in Figure 10-6 the economy's output is O a equal to potential GDP. O b. less than potential GDP. O c greater than potential GDP. O d. equal to the economy's full-employment output. Real GDP Figure 10-5 indicates that the output of the economy is Starting from long-run equilibrium at point F in Figure 10-4, at which of the following points would short-run equilibrium occur following a decrease in resource prices? O a.l O a greater than the economy's long-run capacity. O b. equal to the economy's long-run capacity. O c. less than the economy's long-run capacity. O d. consistent with long-run equilibrium. O b.F O d.H O cG

8. Use the graphs provided to answer parts a-c a) Figure 10-4 b) Figure 10-5 c) Figure 10-6 LRAS LRAS SRAS LRAS| ,SRAS2 SRAS P SRASO J SRÁS, P AD AD AD Real GDP Goods and services market Real GDP Goods and Services Markets In the short-run equilibrium depicted in Figure 10-6 the economy's output is O a equal to potential GDP. O b. less than potential GDP. O c greater than potential GDP. O d. equal to the economy's full-employment output. Real GDP Figure 10-5 indicates that the output of the economy is Starting from long-run equilibrium at point F in Figure 10-4, at which of the following points would short-run equilibrium occur following a decrease in resource prices? O a.l O a greater than the economy's long-run capacity. O b. equal to the economy's long-run capacity. O c. less than the economy's long-run capacity. O d. consistent with long-run equilibrium. O b.F O d.H O cG

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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## Homework Chapter 10 - Question 8 **Use the graphs provided to answer parts a-c** ### Part a) **Figure 10-4:** An economic graph showing various supply and demand curves: - LRAS (Long-Run Aggregate Supply) - SRAS₀, SRAS₁, and SRAS₂ (Short-Run Aggregate Supply at different points) - AD₀ (Aggregate Demand) Points G, F, H, and I signify different equilibrium states. **Question:** Starting from long-run equilibrium at point F in Figure 10-4, at which of the following points would short-run equilibrium occur following a decrease in resource prices? - a. I - b. F - c. G - d. H ### Part b) **Figure 10-5:** An economic graph with: - LRAS (Long-Run Aggregate Supply) - SRAS (Short-Run Aggregate Supply) - AD (Aggregate Demand) Point P marks the price level, and y₁ marks the Real GDP level. **Question:** Figure 10-5 indicates that the output of the economy is: - a. greater than the economy's long-run capacity - b. equal to the economy's long-run capacity - c. less than the economy's long-run capacity - d. consistent with long-run equilibrium ### Part c) **Figure 10-6:** An economic graph showing: - LRAS (Long-Run Aggregate Supply) - SRAS (Short-Run Aggregate Supply) - AD (Aggregate Demand) The graph depicts different price levels (P₁, P₂, P₃) and Real GDP levels (y₁, y₂). **Question:** In the short-run equilibrium depicted in Figure 10-6, the economy’s output is: - a. equal to potential GDP - b. less than potential GDP - c. greater than potential GDP - d. equal to the economy's full-employment output
Transcribed Image Text:## Homework Chapter 10 - Question 8 **Use the graphs provided to answer parts a-c** ### Part a) **Figure 10-4:** An economic graph showing various supply and demand curves: - LRAS (Long-Run Aggregate Supply) - SRAS₀, SRAS₁, and SRAS₂ (Short-Run Aggregate Supply at different points) - AD₀ (Aggregate Demand) Points G, F, H, and I signify different equilibrium states. **Question:** Starting from long-run equilibrium at point F in Figure 10-4, at which of the following points would short-run equilibrium occur following a decrease in resource prices? - a. I - b. F - c. G - d. H ### Part b) **Figure 10-5:** An economic graph with: - LRAS (Long-Run Aggregate Supply) - SRAS (Short-Run Aggregate Supply) - AD (Aggregate Demand) Point P marks the price level, and y₁ marks the Real GDP level. **Question:** Figure 10-5 indicates that the output of the economy is: - a. greater than the economy's long-run capacity - b. equal to the economy's long-run capacity - c. less than the economy's long-run capacity - d. consistent with long-run equilibrium ### Part c) **Figure 10-6:** An economic graph showing: - LRAS (Long-Run Aggregate Supply) - SRAS (Short-Run Aggregate Supply) - AD (Aggregate Demand) The graph depicts different price levels (P₁, P₂, P₃) and Real GDP levels (y₁, y₂). **Question:** In the short-run equilibrium depicted in Figure 10-6, the economy’s output is: - a. equal to potential GDP - b. less than potential GDP - c. greater than potential GDP - d. equal to the economy's full-employment output
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