Question 6OFigure 13-3 shows the relationship between real GDP and the price level in an economy. In the figure,Figure 13-3Price LevelO a. curve CO b. curve BO c. curve EO d. curve AO e. curve DADReal GDPناBCEMoving to the next question prevents changes to this answer.represents long-run aggregate supply?

Macroeconomic analysis provides a thorough picture of an economy's financial situation. It detects…

O Figure 13-3 shows the relationship between real GDP and the price level in an economy. In the figure, Figure 13-3 Price Level a. curve C Ob. curve B O c. curve E d. curve A O e. curve D A Real GDP C Moving to the next question prevents changes to this answer. represents long-run aggregate supply?

O Figure 13-3 shows the relationship between real GDP and the price level in an economy. In the figure, Figure 13-3 Price Level a. curve C Ob. curve B O c. curve E d. curve A O e. curve D A Real GDP C Moving to the next question prevents changes to this answer. represents long-run aggregate supply?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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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)
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Question 1 Which of the following is not a reason for the downward slope of the aggregate demand curve? O a. Interest-rate effect O b. Net exports effect O c. Government spending effect O d. Real balances effect
changes in step with the price level to Long run aggregate supply is the relationship between the quantity of real GDP supplied and the price level when the maintain full employment O A. interest rate O B. real wage rate O C. money wage rate O D. quantity of money Short-run aggregate supply is the relationship between the quantity of supplied and the when the money wage rate, the prices of other resources, and potential GDP remain constant O A. potential GDP, price level O B. real GDP, price level O C. nominal GDP, exchange rate O D. real GDP, interest rate
29) Suppose that from 2017 to 2018, unemployment went from 7.2 to 5.6% and inflation went from 2.17 to 1.1%. An explanation of these changes might be that the O long-run aggregate supply curve shifted to the left. O interest rates increased O consumer spending increased O overnment decreased federal expenditures O price of steel decreased
33. Refer to Figure 4. As the_____decreases, the amount of ____demanded by all sectors of the economy_____
Price Level LAS SAS, SAS, AD SAS, AD, AD, Real Output Refer to the graph. Suppose the economy is at SAS, and AD₂. What is a possible way the economy can return to potential output? What dynamic price level feedback effect could prevent the return to potential output? How would the dynamic price level feedback effect show up in the graph? O A decrease in asset prices in the economy; a decrease in asset prices would further decrease AD; a shift in AD from AD2 to AD3 O A decrease in material costs in the economy; a decrease in material costs would decrease AD; a shift in AD from AD2 to AD1 A decrease in wages in the economy; a decrease in wages would further decrease AD; a shift in AD from AD2 to AD3 A decrease in wages in the economy; a decrease in wages would further decrease AD; a shift in AD from AD2 to AD1
6. Why the aggregate supply curve slopes upward in the short run In the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. Several theories explain how this might happen. For example, the sticky-wage theory asserts that output prices adjust more quickly to changes in the price level than wages do, in part because of long-term wage contracts. Suppose a firm signs a contract agreeing to pay its workers $15 per hour for the next year, based on an expected price level of 100. If the actual price level turns out to be 90, the firm's output prices will , and the wages the firm pays its workers will remain fixed at the contracted level. The firm will respond to the unexpected decrease in the price level by v the quantity of output it supplies. If many firms face similarly rigid wage contracts, the unexpected decrease in the price level causes the quantity of output…
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