Movement along the aggregate demand curve Shift of the aggregate demand curve Answer Bank a rise in taxes a rise in household expectations deflation the international trade effect a rise in the value of the domestic currency relative to foreign currencies a rise in business expectations a rise in the growth rate of domestic GDP relative to foreign GDP the interest rate effect inflation the wealth effect a rise in government purchases

Movement along the aggregate demand curve Shift of the aggregate demand curve Answer Bank a rise in taxes a rise in household expectations deflation the international trade effect a rise in the value of the domestic currency relative to foreign currencies a rise in business expectations a rise in the growth rate of domestic GDP relative to foreign GDP the interest rate effect inflation the wealth effect a rise in government purchases

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following table lists several determinants of aggregate supply. Fill in the table by indicating the changes in the determinants necessary to increase aggregate supply. Determinant Prices of Nonlabor Inputs Productivity Nominal Wage Rate Change Needed to Increase Short-Run Aggregate Supply
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prepare a list of events that would shift the aggregate supply curve leftward or rightward.
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The following events shift either aggregate demand, aggregate supply, both or neither. Using a diagram, illustrate the effect of the events on the economy. In particular, explain the effect of each event on price level, real GDP and equilibrium in the economy. A) A recent business survey reported that business confidence has declined. B) Government cuts the rate of personal income tax after a pandemic caused an economic slowdown. C) A recent flooding in a small rural region destroyed the potato crop. D) A booming economy in a neighbouring country has drawn many working age people (and their families) to emigrate there in search of jobs and better life.
The following graph shows an aggregate demand curve (AD) illustrating the inverse relationship between the price level and the quantity of Real GDP in the United States. During World War II, the United States increased military spending. Show the effect of the following scenario on the aggregate demand curve by dragging the curve or moving the point to the appropriate position. Note: Tool tip: To move the curve, click and drag any part of the curve. The curve will snap into position, so if you try to move it and it snaps back to its original position, just try again and drag it a little farther. PRICE LEVEL Aggregate Demand I I " I 1 REAL GDP AD AD (?)
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Suppose that an economy wants to boost available labor hours in order to increase aggregate supply. What is the best way to accomplish this?
If the economy’s labor force is increasing and also becoming more productive, what will happen to the aggregate supply curve?