In the extended aggregate demand-aggregate supply model,O long-run equilibrium occurs wherever the aggregate demand curve intersects the short-runaggregate supply curve.O the long-run aggregate supply curve is horizontal.O the price level is the same regardless of the location of the aggregate demand curve.O long-run equilibrium occurs at the intersection of the aggregate demand curve, the short-runaggregate supply curve, and the long-run aggregate supply curve.

Aggregate demand refers to the overall demand level in an economy demanded by the consumers. The…

In the extended aggregate demand-aggregate supply model, O long-run equilibrium occurs wherever the aggregate demand curve intersects the short-run aggregate supply curve. O the long-run aggregate supply curve is horizontal. the price level is the same regardless of the location of the aggregate demand curve. O long-run equilibrium occurs at the intersection of the aggregate demand curve, the short-run aggregate supply curve, and the long-run aggregate supply curve.

In the extended aggregate demand-aggregate supply model, O long-run equilibrium occurs wherever the aggregate demand curve intersects the short-run aggregate supply curve. O the long-run aggregate supply curve is horizontal. the price level is the same regardless of the location of the aggregate demand curve. O long-run equilibrium occurs at the intersection of the aggregate demand curve, the short-run aggregate supply curve, and the long-run aggregate supply curve.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

A decrease in the price of foreign oil will affect the U.S. economy by O a. decreasing aggregate supply. O b. increasing aggregate demand. O c. increasing aggregate supply. O d. decreasing aggregate demand
Which of the following causes the short-run aggregate supply curve to shift to the right? O A. an increase in the expected price of an important natural resource B. a positive technological change O C. a higher expected future price level O D. a decrease in the capital stock
In the figure, as the price level increases the aggregate demand curve will Price level (GDP price index, 2012 = 100) A. not shift. O B. not shift, but the aggregate demand curve will change so that it is positively sloped. O C. shift from AD, to AD, O D. shift from AD, to AD, and then back to AD,. E. shift from AD, to AD3. AD2 AD3 AD1 Real GDP (trillions of 2012 dollars)
Question 29 Which of the following factors will not shift the long-run aggregate supply curve? O An increase in capital accumulation. An increase in available resources. An increase in the price level. An improvement in production technology.
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.
Question 14 The effects of a price level that is higher than expected are shown by O shifting the short-run aggregate supply curve right. moving to the left along a given short-run aggregate supply curve. shifting the short-run aggregate supply curve left. O moving to the right along a given short-run aggregate supply curve.
In order to shift the vertical aggregate supply curve to the left, which of the following would have to occur? O expansion of potential GDP O increase in productivity flexible wage and price adjustments O breakdown of key market institutions
In the intermediate range of an aggregate supply curve an increase in total demand will O cause unemployment and deflation. cause employment to fall, but the price level to rise. increase employment, output, and the price level. O increase employment and output but not the price level.
Starting at long run equilibrium, ceteris paribus, an increase in the costs of widely used factors of production would most likely O Increase short run aggregate supply and create an inflationary gap. O Decrease long run aggregate supply and create a recessionary gap. O Decrease short run aggregate supply and create a recessionary gap. O Decrease aggregate demand and create a recessionary gap.