According to new classical economists, if a decrease in aggregate demand is correctly anticipated, the short-run aggregate supply curve will shiftso that there will be no change in Real GDP.same time the AD curve shiftsO a rightward; rightwardO b. leftward; rightward icleftward; rightwardO d. rightward; leftwarde none of the aboveGHide FeedbackIncorrectat the The economy is in long-run equilibrium when government unexpectedly increases aggregate demand. The expected inflation rate is slow to adjust to the higheractual) inflation rate. If follows that in the short run, according to the Friedman natural rate theory.rises and thefalls.a. the unemployment rate, price levelb. Real GDP rises, unemployment ratec. nominal interest rate, real interest rated. the unemployment rate, Real GDP levele none of the above

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

According to new classical economists, if a decrease in aggregate demand is correctly anticipated, the short-run aggregate supply curve will shift so that there will be no change in Real GDP. same time the AD curve shifts O a rightward; rightward O b. leftward; rightward cleftward; rightward d. rightward; leftward Onone of the above Hide Feedback O 0 Incorrect at the

According to new classical economists, if a decrease in aggregate demand is correctly anticipated, the short-run aggregate supply curve will shift so that there will be no change in Real GDP. same time the AD curve shifts O a rightward; rightward O b. leftward; rightward cleftward; rightward d. rightward; leftward Onone of the above Hide Feedback O 0 Incorrect at the

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Please correct answer
Question 3 When placed in the AD/AS framework, the simple quantity theory of money requires O A horizontal AD curve. O A vertical AS curve. O A horizontal AS curve. O A vertical AD curve. Question 4 If decline in interest rates doesn't lead to increased investment then, O Unemployment will be the same. Real GDP will be the same as before. O Allof the above O AD curve will remain unchanged.
A Moving to another question will save this response. Question 21 An increase in wealth from a substantial increase in stock prices will move the economy along a fixed aggregate demand curve. O A. true. O B. false. A Moving to another question will save this response.
87
Assume a Keynesian AS curve. In the short run, when there is a large negative output gap (AD-AS intersection to the left of the full employment level of output), then O the government should use contractionary demand management policy expansionary demand management policy is likely to be highly inflationary O expansionary demand management policy does not cause much inflation contractionary demand management policy is likely to be highly inflationary
In the AS/AD Model, a decrease in the financial friction will Select one: O a. Shift the aggregate demand curve to the right. Ob. O b. Shift the aggregate supply curve to the left. Shift the aggregate supply curve to the right. O c. O d. Shift the aggregate demand curve to the left.
Exhibit 14A-2 Macro AD-AS Model Price Level CPI 130 120 110 100- - 8 90 0 9.0 9.6 LRAS SRAS 10.0 10.5 AD L 11.0 Real GDP (trillions of dollars per year) F 11.5 In Exhibit 14A-2, the long-run aggregate supply curve represents: potential real GDP output for this economy. that the economy is experiencing zero inflation. that the economy is experiencing a recessionary gap. the level of real GDP where the unemployment rate is zero.
According to the basic AS-AD model with a horizontal AS curve, high inflation and recession can occur in the short-run at the same time when there is: O b. an adverse supply shock with a decrease in aggregate demand. O C. a favorable supply shock with a decrease in aggregate demand. O d. a favorable supply shock without a change in aggregate demand. an adverse supply shock without a change in aggregate demand.
Consider the basic AD/AS macro model in long-run equilibrium that experiences a positive AD shock. In the short run, the price level and output In the long run, the price level and output O a. Decreases; decreases; decreases further; decreases further. O b. Decreases; decreases; decreases further; returns to potential output. O c. Increases; increases; increases further; increases further. O d. Increases; decreases; increases further; returns to potential output. O e. Increases; increases; increases further; returns to potential output.
please give correct answer and urgently. I will give POSITVE rating if you give correct answer. don't give answer if you aren't sure about answer
Please give exact answer of question with explanation of correct option and incorrect option and take like
Question 4 Refer to the information provided in Figure 12.1 below to answer the questions that follow. Not yet answered Marked out of 1.00 AD P Flag question AD AD Aggregate output (Y) Figure 12.1 Refer to Figure 12.1. Suppose the economy is at Point A. A can cause a movement to Point D. Select one: O a. decrease in the price level O b. increase in the price level increase in aggregate demand O d. decrease in aggregate demand Price level