Figure 34-2 PRICE LEVEL LRAS B QUANTITY OF OUTPUT AD₂ AD. SRAS, SRAS Refer to Figure 34-2. If the economy is in long-run equilibrium, a favorable shift in short-run aggregate supply curve would move the economy from A to B. B to C. ○ C to D. ○ D to A
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- Which of the following causes the short-run aggregate supply curve to shift to the right? A. a positive technological change B. an increase in the expected price of an important natural resource C. a higher expected future price level D. a decrease in the capital stock Which of the following causes the short-run aggregate supply curve to shift to the left? A. an increase in the labor force B. an increase in productivity OC. an increase in the expected price of an important natural resource D. a positive technological changeWhat effects would each of the following have on aggregate demand or each case use a diagram to show the expected effects on the equilibrium price level and level of real output. Assume that all other things remain constant. aggregate supply? In a. A widespread fear of depression on the part of consumers. AD curve (right, left), output (up, down) and price level (up, down) (assuming no ratchet effect). b. The expectation of rapid inflation. AD curve (right, left), output (up, down) and price level (up, down). с. A sizable increase in labor productivity (with no change in nominal wages). AS curve (right, left), output (up, down) and price level (up, down). d. Depreciation in the international value of the dollar. AD curve (right, left) (increased net exports); AS curve (right, left) (higher input prices)3. Explain whether each of the following events will increase, decrease, or have no effect on longrun aggregate supply in your country. a. There is an increase in immigration into your country. b. Your government introduces a minimum wage above the market-clearing wage rate. c. Intel invents a new and more powerful computer chip. d. A severe flood damages factories.
- Which of the following statements will not parallel shift the aggregate supply curve? A. A reduction in business taxes. B. A reduction in the price of imported oil. C. An increase in labor productivity. D. A reduction in the general level of prices Please do fast ASAP fastThe graph below depicts an economy where a decline in aggregate demand has caused a recession. Assume the government decides to conduct fiscal policy by increasing government purchases to reduce the burden of this recession. Fiscal Policy 180 LRAS AS 160 140 120 100 80 60 40 AD 20 AD, 100 200 300 400 500 600 700 800 900 Real GDP (billions of dollars) Inctructions: Enter your answers as a whole number. Price LevelHow does the increase in U.S energy production and the subsequent reduction in the reliance on imported oil affect the U.S Aggregate demand and/or short run aggregate supply curve(s) ? Examine the potential impact on real GDP and the average price level in the U.S.
- An improvement in the level of technology in an economy will result in An upward movement along the aggregate supply curve An outward shift of the aggregate supply curve O A downward movement along the aggregate supply curve An inward shift of the aggregate supply curveFigure 34-3 PRICE LEVEL a a a LRAS Y, Y₂ QUANTITY OF OUTPUT SRAS. SRAS. AD Refer to Figure 34-3. Starting from point B and assuming that aggregate demand is held constant, in the long run the economy is likely to experience a falling price level and a falling level of output, as the economy moves to point C. falling price level and a rising level of output, as the economy moves to point A. rising price level and a falling level of output, as the economy moves to point A. Orising price level and a rising level of output, as the economy moves to point C.Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, a shift in neither curve, or shift in both curves. If a shift is caused, indicate which curve shifts, and in which direction it shifts. What happens to aggregate output and the price level in each case? 4. The wages rate decreases.
- es/118790/quizzes/952344/take OS D SU My ASU ASU CANVAS Question 2 Which of the following would cause a shift in the short-run aggregate supply curve, but no change in the long-run aggregate supply curve? O an increase in the size of the labor force an increase in the wage rate an increase in the quantity of capital O all of the above would shiftboththe long-run aggregate supply curve and the short-run aggregate supply curve. Question 3 Which of the following would NOT lead to a shift in the long- run aggregate supply curve? O An increase in the money supply. 1Price level (P) LRAS SRAS2 SRAS, В A AD2 AD, Real GDP (7) Based on the graph, a decrease in Point D to Point A could cause the economy to move from government spending exports on apples restrictions from the Environmental Protection Agency on car production in the U.S. inflation the demand for consumer goods Question 8 Suppose housing values fell during the recession of 2008. Therefore, O the price level will fall as the aggregate demand curve shifts to the left.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