(Figure: Determining SRAS Shifts) If there is a decrease in input prices, the short-run aggregate supply curve will shift from SRASO to and the price level will shift to Aggregate Price Level (P) P₂ Po P₁ 0 SRAS1; P1 SRAS2: P2 SRAS₂ 1 Q₂ Qo Q₁ Aggregate Output (Q) SRASO AD SRAS,

(Figure: Determining SRAS Shifts) If there is a decrease in input prices, the short-run aggregate supply curve will shift from SRASO to and the price level will shift to Aggregate Price Level (P) P₂ Po P₁ 0 SRAS1; P1 SRAS2: P2 SRAS₂ 1 Q₂ Qo Q₁ Aggregate Output (Q) SRASO AD SRAS,

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

(Figure: Determining SRAS Shifts) If there is a decrease in input prices, the short-run
aggregate supply curve will shift from SRASO to _____ and the price level will shift to
Aggregate Price Level (P)
P₂
Po
P₁
0
SRAS₂
H
1
Q₂ Qo Q₁
Aggregate Output (Q)
SRAS1: P1
SRAS2: P2
SRASO
AD
SRAS₁

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"Fracking" is a relatively new technology that allows drillers to extract significantly larger quantities of natural gas from existing deposits than was previously possible. How is this discovery likely to affect the economy? (Hint: Think about whether this will have a short-run or long-run effect.) This discovery will likely: O increase both SRAS and LRAS, leading to a long-term increase in output and decrease in prices. O increase AD but decrease both SRAS and LRAS, leading to an uncertain change in long- term output and a decrease in prices. decrease both SRAS and LRAS, leading to a long-term decrease in output and increase in prices. O increase AD, SRAS, and LRAS, leading to a long-term increase in output and an uncertain change in prices.
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Please answer all parts Not a previously submitted question
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. 1
Which economic condition would most likely be experienced if aggregate supply shifts from AS to AS2 as in the graph below?
2.2. In macroeconomics, the immediate short run is known as a length of time when both input prices and output prices are fixed. In the short-run, input prices are fixed but output prices are variable. In the long run, input prices and output prices can vary. Describe the AS curve in the Immediate Short run. Describe the AS curve in the Short run. Describe the AS in the Long run.
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.
Confused and not sure how to answer
Figure: Determining SRAS Shifts 2) Aggregate Price Level (P) A Aggregate Output (Q) Which of these might cause this change in short-run aggregate supply? Businesses expect inflation to rise. Consumer incomes decrease. O Market power decreases as new business enter an industry. Unions successfully negotiate longer vacation times.