If aggregate demand increases while aggregate supply is constant in an economy in the short run, which of the following statements is correct for the new equilibrium point?    a) price goes down national income goes down  B) price falls, national income rises  NS) price goes up national income does not change  D) price goes up national income goes down  TO) price goes up national income goes up

Q: 6. Why the aggregate supply curve slopes upward in the short run In the short run, the quantity of…

A: According to the sticky wage theory, changes in organisation performance or the state of the economy…

Q: Questio When is a country said to move into a recession? a) If actual output falls below the…

A: A recession is classified as a significant reduction in overall economic activity that lasts more…

Q: In the short run, the decrease in foreign spending on domestic goods associated with the recession…

A: Long run equilibrium occurs when aggregate demand equals short-run aggregate supply at a point on…

Q: 2. In the space below, insert the names for X and Y axis, graph LRAS and AD (Aggregate Demand) line,…

A: Equilibrium is where AD = LRAS  AD = Aggregate demand LRAS = Long run aggregate supply   When AD =…

Q: The tables below show the aggregate demand and two aggregate supplies for the economy of Zandu.…

A: According to Neo-Classical theory, supply generates demand on its own. According to the neoclassical…

Q: 7. Determinants of short-run aggregate supply The following graph shows a decrease in short-run…

A: The total supply of goods and services that firms in a national economy intend to sell over a…

Q: 9. The economy is currently in the long-run macroeconomic equilibrium. a) Using a graph, show the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: If residents are myopic, an increase in “worthless” government spending, financed by higher current…

A: If residents are myopic, they concern too much about present rather than the future.  If the…

Q: Complete the table by indicating the change in each determinant necessary to increase aggregate…

A: Aggregate demand (AD): It represents the total amount of demand for all finished goods and services…

Q: [Extended dynamic analysis and reflection] Petrol prices have recently jumped, and this appears to…

A: Oil prices, like gasoline prices, have an important influence in determining production costs and,…

Q: 32

A: We know that Immigration refers to the international movement of people to a country of which they…

Q: 7. Determinants of aggregate supply The following graph shows a decrease in short-run aggregate…

A: Aggregate supply : Aggregate supply, commonly referred to as total output, is the whole quantity of…

Q: The following table shows the real output demanded and supplied at various price levels in a…

A: The equilibrium level in macro economy is achieved at the level where AD=SRAS=LRAS. This is called…

Q: Economics Learning Center Online Classes - Final Mock Exam (1) Price Level (Index Value) Real…

A: Here, the given table shows the quantity demanded and quantity supplied of real output at different…

Q: 7. Provide the three major factors that can cause a shift in aggregate supply, that is, explain the…

A: We will answer the first question since the exact one was not specified. Please submit a new…

Q: 2. Aggregate supply (AS) denotes the relationship between the holding the price of that firms choose…

A: The Aggregate Supply Curve is one of the most fundamental concepts when studying Macroeconomics. The…

Q: Interest rates Domestic currency value relative to the foreign currency Consumer expectations about…

A: Aggregate demand is composed of consumption spending, investment spending, government purchases, and…

Q: 21. Assuming Mexico, one of the major trading partners with the United States, starts experiencing…

A: When the economic growth in an economy slows down we can state that there exists an economic…

Q: 1) ...... shows the relationship between price level and quantity of real GDP demanded by…

A: Real GDP (Gross Domestic Product) implies the total value of all products and services produced…

Q: The long-run aggregate supply curve is O a) the same as the short-run aggregate supply curve. O b)…

A: The long-run aggregate supply (LRAS) curve depicts the maximum level of output that an economy can…

Q: Which of the following is considered a negative supply side shock? A an improvement in technology an…

A: While supply can refer to anything that is in high demand and sold in a competitive market, it is…

Q: What will the new price equal? 300 400 600 800

A: Macroeconomics examines the working, composition, and dynamics of an economy. To comprehend and…

Q: 1. Graph aggregate supply (AS) curve and aggregate demand (AD) curve. 2. At price level = 160, what…

A: Surplus is the situation where aggregate supply is higher than aggregate demand.

Q: The following graph shows a hypothetical economy in long-run equilibrium at an expected price level…

A: AD (aggregate demand) is the sum of C(consumption), I(investment ), G(government spending), and net…

Q: Suppose for reasons unrelated to your income, you decide to spend $1000 (in real terms) more this…

A: The changes in the aggregate demand causes the shifts of the aggregate demand curve. The aggregate…

Q: 9. Which of the following explain why the Aggregate Supply curve is upward sloping?     a) As the…

A: Aggregate demand refers to the overall quantity of goods or services that an economy demand over a…

Q: - A bad economy is starting to drag down wages for millions of workers. The average weekly  wage of…

A: A decrease in the minimum wage and the average weekly wage may have different short-term effects on…

Q: U.S. aggregate demand and long-run aggregate supply decreased during the Great Recession. This…

A: Great recession is a situation in which the demand and supply decreased to its lowest point.

Q: (a) Price can affect the aggregate supply curve (AS). Can you identify factors other than price that…

A: Aggregate supply (AS) refers to the total quantity of goods and services that producers in an…

Q: 1. The short-run aggregate supply curve shows:   a. The relationship between the price level and…

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

Q: 2) Suppose a country devalues its currency. If the country's demand for imports is the price…

A: Meaning of Price Elasticity of Demand: The price elasticity of demand refers to the situation…

Q: 1. Aggregate supply definitions The short-run aggregate supply curve shows: What happens to output…

A: Aggregate supply refers to the total quantity of goods or services that a nation produce in a period…

Q: 1.) If consumption falls, Keynesians believe unemployment will ________ for everyone, while…

A: Austrian economist Friedrich Hayek believed that the New Deal wasn’t sustainable. He felt that…

Q: PRICE LEVEL Aggregate Demand REAL GDP AD AD

A: International cooperation is vital to commercial ideals. Specialization is encouraged by the notion…

Q: Question 10: Assume an economy operates in the intermediate range of its aggregate supply curve. For…

A: Free goods don’t require resources to produce them as they are available freely in nature. Therefore…

Q: 8. Economic fluctuations I The following graph shows the economy in long-run equilibrium at the…

A:

Q: PRICE LEVEL 10 100 LRAS 95 AS AD 90 85 80 6 75 75 70 65 60 60 65 70 75 80 85 OUTPUT (Billions of…

A: The aggregate demand refers to the total demand for all the goods and services produced in an…

Q: The short-run aggregate supply curve shows: O The relationship between the price level and aggregate…

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

Q: What are the determinants for aggregate demand and aggregate supply? How would an ideal aggregate…

A: The link between the quantity of a commodity that producers want to sell at various prices and the…

Q: (1) Draw a generic Aggregate Supply (AS) and Aggregate Demand (AD) curve on a set of axes. Label…

A: Goods market is in equilibrium where aggregate demand and aggregate supply intersect at certain…

Q: Fill in the table by indicating the changes in the determinants necessary to increase short-run…

A: The total amount of products and services that all businesses in an economy are prepared and capable…

Q: Suppose the aggregate demand and short-run aggregate supply schedules for an economy whose potential…

A: Recessionary Gap occurs when Real GDP is less than the Potential GDP. Due to recessionary gap,…

Q: The following table lists several terminants of aggregate supply. Complete the table by indicating…

A: The aggregate supply curve depicts the total quantity of goods and services produced at different…

Q: 34) Unemployment would increase and prices would decrease if aggregate demand shifted left aggregate…

A: When the aggregate demand is decreasing, it shifts leftward and the price level decreases. Since the…

Q: Again, the following graph shows the economy in long-run equilibrium at the expected price level of…

A: The economy is in long-run equilibrium initially at the price level of $120 and an output level of…

Q: 15. Suppose a developing country receives more machinery and capital equipment as forei…

A: The Long Run Aggregate Supply (LRAS) curve is a graphical representation of the relationship between…

Q: As the price level rises, the purchasing power of households' real wealth will This phenomenon is…

A: The AD or Aggregate demand curve shows different combinations of the price level (P) and output…