In the AD-AS model with an upward-sloping AS-curve, a decrease in oil prices will Multiple Choice O O O O increase prices and output in the long run decrease prices and increase output in the short run increase prices and decrease output in the long run decrease prices and output in the short run decrease prices but have no effect on output in the short run

In the AD-AS model with an upward-sloping AS-curve, a decrease in oil prices will Multiple Choice O O O O increase prices and output in the long run decrease prices and increase output in the short run increase prices and decrease output in the long run decrease prices and output in the short run decrease prices but have no effect on output in the short run

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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e. In this scenario, would you suggest using aggregate demand to alter the level of output or to control any inflationary increases in the price level?
Suppose that the economy is initially in long-run equilibrium with the price level of 800. Now suppose that the Aggregate Demand (AD) curve shifts left from AD1 (blue) to AD2 (green). 1200 ADX 1100- 1000 Price Level ADX 900- 800 700 600 50% RASI 400* 300- 200 100- LRAS 400 500 600 700 100 200 300 Real GDP What is the new price level in the short-run as a result of this shift? 800 900 1000 1100 120 a
Please draw on top of graph
AD AD AD, Real GDP Refer to the above diagram. An expansionary fiscal policy can best be represented by a: Multiple Choice shift in the aggregate demand curve from AD2 to AD1. shift in the aggregate demand curve from AD3 to AD2. Prex Price Level
Figure 34-3 PRICE LEVEL aaa" LRAS B Y, Y₂ QUANTITY OF OUTPUT SRAS. SRAS AD Refer to Figure 34-3. In Figure 34-3, point B represents a short-run equilibrium and a long-run equilibrium. short-run equilibrium, and Point A represents a long-run equilibrium. long-run equilibrium, and Point A represents a short-run equilibrium. long-run equilibrium, and Point C represents a short-run equilibrium.
E1
Market Watch, May 24, 2018 discusses, "what happens if the oil rally turns into an 'oil shock' ". Graphically show the short- and long-term impact of this using the AD-AS model.
Give typing answer with explanation and conclusion
which makes sense to bubble in?
On the graph, label your starting AD line as AD 2019. Draw a new AD line showing the change to AD due to the pandemic. Label your starting SRAS line as SRAS 2019. Draw a new SRAS line showing the change to supply due to the pandemic.Label the new short-run equilibrium RGDP and Price Level. Does output (i.e. RGDP) increase or decrease in your model? Does the price level increase or decrease in your model? According to the AD-AS model when RGDP falls the unemployment rises and vice versa. Does your graph indicate an increase or decrease in the unemployment rate
"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.
9. Economic fluctuations II The following graph shows the aggregate demand curve (AD), the short-run aggregate supply curve (AS), and the long-run aggregate supply curve (LRAS) for a hypothetical economy. Initially, the expected price level equals the actual price level, and the economy experiences long-run equilibrium at a natural level of output of $110 billion. Suppose a bout of severe weather drives up agricultural costs, increases the costs of transporting goods and services, and increases the costs of producing goods and services. Use the graph to help you answer the questions about the short-run and long-run effects of the increase in production costs that follow. (Note: You will not be graded on any adjustments made to the graph.) Hint: For simplicity, ignore any possible impact of the severe weather on the natural level of output. LEVEL 130 125 120 115 110 LRAS AS AD AS ?