If policymakers decrease aggregate demand, then in the short run the price level Answer falls and unemployment rises. and unemployment fall. and unemployment rise. rises and unemployment falls.
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If policymakers decrease aggregate demand, then in the short run the price level
Answer
falls and
and unemployment fall.
and unemployment rise.
rises and unemployment falls.
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- Which of the following is likely to occur if an increase in legal immigrants significantly reduces the wages of workers, ceteris paribus? A. Aggregate supply will decrease (shift left). B. Aggregate supply will increase (shift right). C. Aggregate demand will increase (shift right). D. Aggregate demand will decrease (shift left).Cyclical unemployment is caused by the recession to expansion. Osupply; moving to the right Odemand; moving to the right Odemand; moving to the left supply; moving to the left for labor during an economy moving fromA looseningloosening of the labor market will cause A. the aggregate supply curve to shift down. B. the aggregate supply curve to shift up.the aggregate supply curve to shift up. C.the aggregate demand curve to shift left.the aggregate demand curve to shift left. D.the aggregate demand curve to shift right. When the labor market is? tight, A. wages? fall, and the aggregate supply curve shifts down. B.wages? rise, and the aggregate supply curve shifts down. C.wages? rise, and the aggregate supply curve shifts up. D.wages? fall, and the aggregate supply curve shifts up.
- The percentage change in the overall level of prices in an economy is called a. contraction.What happens when the minimum wage increases, in the short run? Select one: a. Aggregate demand shifts left, the price level falls, and real output falls b. Aggregate supply shifts down, the price level falls, and real output increases c. Aggregate supply shifts up, the price level rises, and real output decreases d. Aggregate demand shifts right, the price level rises, and real output risesTo decrease output the government could adopt policies that :Select one a. increase aggregate supply and decrease .aggregate demand b. decrease aggregate supply and .aggregate demand c. decrease aggregate supply and increase .aggregate demand d. increase aggregate supply and aggregate .demand
- Which of the following would cause the Aggregate Quantity Demanded to increase? a. An increase in the price level causing a decrease in the purchasing power of the consumers' wealth b. A decrease in the price level causing an increase in the market rate of interest c. An increase in the price level causing an increase in the purchasing power of the consumer's wealth d. A decrease in the price level causing a decrease in the market rate of interest e. None of the aboveHow do people typically respond to higher real interest rates? by saving less by paying more taxes by saving more by consuming moreIf the aggregate demand is 300 + 50P and the aggregate supply is 100 + 60P calculate the value of P
- 4) An increase in the minimum wage will cause: A) a reduction in the equilibrium real wage. B) an increase in the natural rate of unemployment. C) an increase in the equilibrium real wage. D) a decrease in the natural rate of unemployment. E) no change in the natural rate of unemployment.a. What is the theorized relationship between the unemployment rate and the minimum wage in the static model of the labour market? b. How should the unemployment rate respond to a constant minimum wage in the static model of the labour market?Describe how different parts of the economy may have experienced shifts and changes in supply and demand. Provide at least 4 examples.