Match the left to the right Shift to dotted line: then whole shift Shift the AS curve C, I, G, X Shift the AD curve AD curve and what causes the downward shape Total Output Total Input The Price Level does not decrease easily Productivity- Per Unit production Costs Ratchet effect Cost-push inflation Initial change in spending multiplier effect Real balances, real interest rate and foreign purchases Full employment level of output Equilibrium Total input cost Total output Change in resource prices, productivity and legal institutional environment

Match the left to the right Shift to dotted line: then whole shift Shift the AS curve C, I, G, X Shift the AD curve AD curve and what causes the downward shape Total Output Total Input The Price Level does not decrease easily Productivity- Per Unit production Costs Ratchet effect Cost-push inflation Initial change in spending multiplier effect Real balances, real interest rate and foreign purchases Full employment level of output Equilibrium Total input cost Total output Change in resource prices, productivity and legal institutional environment

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Match the left to the right
Shift to dotted line:
then whole shift
Shift the AS curve
CI, G, X
Shift the AD curve
AD curve and what causes
the downward shape
Total Output
Total Input
The Price Level does
not decrease easily
at
Productivity-
Per Unit production
Costs=
Ratchet effect
Cost-push inflation
Initial change in spending
multiplier effect
Real balances, real interest
rate and foreign purchases
Full employment level of output
Equilibrium
Total input cost
Total output
Change in resource prices,
productivity and legal
institutional environment

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Assume an ecomy operates in the intermediate range of its aggregate supply curve. State the direction of shif for the aggregate demand curve or aggregate supply curve for each of the following changes in conditions. What is the effect on the price level? On real GDP? On employment?
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The change in the macroeconomic balance was caused by: Answer Choice Group Increase in discount rate Appreciation of the national currency Decrease in government spending Decrease in discount rate
According to the AS-AD model, which of the following is true about output when there is an decrease in the SRAS and no other change? (Select all that are true) There is no change in output in the long run There is a decrease in output in the long run There is an increase in output in the short run There is an increase in output in the long run There is a decrease in output in the short run There is no change in output in the short run
Suppose when unemployment is at its natural rate the economy produces a level of real GDP equal to $70 billion. Using the purple points (diamond symbol) plot the economy's long-run aggregate supply (LRAS) curve on the graph PRICE LEVEL 8 124 R 3 100 " BE 10 TO OUTPUT is of da LRAS
For example, an increase in the money supply,(NORMINAL, REAL) a variable, will cause the price level, a (NORMINAL, REAL) variable, to increase but will have no long-run effect on the quantity of goods and services the economy can produce, a (REAL, NORMINAL) variable. The notion that an increase in the quantity of money will impact the price level but not the output level is known as (MONETARY, THE QUANITY, PRICE) .