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- The graph above refers to a significant increase in individual income taxes, taking them to their highest level in 50 years. Which of the following is likely to result? a) macroeconomic supply will decrease in the short run b) the economy will experience lower economic growth c) inflationary pressures will be mild d) cyclical unemployment will decreaseA decrease in the price level will:(a) shift the AS curve to the left.(b) shift the AD curve to the left.(c) shift the AS curve to the right.(d) leave both the AD curve and the AS curve unchanged.A stock market bust leads to a decrease in wealth in the economy. What happens to equilibrium price and RGDP in the economy? 1) Equilibrium price and equilibrium RGDP increase. 2) Equilibrium price and equilibrium RGDP decrease. 3) Equilibrium price will rise and equilibrium RGDP will fall. 4) Equilibrium price will fall and equilibrium RGDP will rise.
- Choose the correct match of each of the following economic concepts: A Unemployment caused by a decrease in the demand for some goods and services B The equilibrium point is to the left of the full employment point graphically C The inverse of the marginal propensity to consume (MPC) D Total Leakages exceeds Total Injections The Multiplier The equilibrium point is the same as the full employment point graphically E v National income equilibrium E Total Injections exceeds Total Leakages Ev Inflationary Gap G The equilibrium point is to the right of the full employment point graphically Structural Unemployment | Increases with the increase in the marginal propensity to save (MPS) |Unemployment resulting when workers change their jobs |Increases with the increase in the marginal propensity to consume (MPC) K Total Leakages equals Total Injections Unemployment that appears during the downturn of the business cycle A Moving to another question will save this response. « < Question 16 ch…The inverse supply function for pizza is: pS = 1 + QS %3D The demand function for pizza is: pD = 19 - 200 %3D How many fewer pizzas are bought and sold with a $6 tax on consumption? Answer:How would the long-run equilibrium output change if the price level fell? Decrease, Increase or No change?
- Equilibrium output only occurs when 1) government budget is balanced 2) there are no output gaps 3) there is no tendency for output to change 4) the level of imports is equal to the level of exportsf Country X is currently at full employment. A fall in future profit will reduce SAS and hence increase price and real GDP. reduce LAS and hence raise price but reduce real GDP. reduce AD and hence raise price and real GDP. reduce AD and hence reduce price and real GDP.At the point of full employment Select One: a) Production can be increased with a fall in prices b) Aggregate demand will no longer increase c) Production can be increased with increased prices only d) The producers get maximum profit e) Aggregate demand continues to fall
- Consider an imaginary price index, the Undergraduate Price Index (UPI), created to represent the annual purchases made by a typical undergradute. The following table contains information on the market basket for the UPI and the price of each good in 2020, 2021, and 2022. The cost of each good in the basket as well as the basket’s total cost are given for 2020. Perform these same calculations for 2021 and 2022, and enter the results in the following table. Quantity in Basket 2020 2021 2022 Price Cost Price Cost Price Cost (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) Streaming services 1 64 64 104 134 Iced coffees 150 2 300 2 2 Textbooks 10 80 800 85 105 Notebooks 8 2 16 2 4 Energy drinks 40 3 120 4 5 Total cost 1,300 Price index 100 Suppose this price index uses 2020 as the base year. In the last row of the table, calculate and…The U.S. macroeconomy is in a short-run equilibrium at Q1 and P1. What is going to happen in the long-run? P Р1 QN Q₁ SRAS1 AD Q This is a diagram with price on the vertical axis and quantity on the horizontal axis. There is a place marked on the horizontal axis with a QN. There is an upward sloping line labelled SRAS and a downward sloping line labelled AD. The place these two lines intersect is labelled Q1 on the horizontal axis and P1 on the vertical axis. Q1 is to the right of QN. O The aggregate demand curve will shift left leading to falling prices and falling output. O SRAS curve will shift left leading to rising output and rising prices. OSRAS curve will shift left leading to rising prices and falling output.In the long run, an increase in government purchases will raise the price level, but not production or employment. True or false
