Price level LRAS2 LRAS1 120 110 100 B A SRAS2 SRAS1 AD Y** Y* Real GDP (Y) Question 32 After the event happens, (a) which curve(s) shift(s) to which direction? [Select] (b) does real GDP increase, decrease, or remain unchanged? [Select] (c) does full-employment output increase, decrease, or remain unchanged? [Select] (d) what is the price level in long run after the event? [Select] (e) which point is the long run equilibrium after the event? [Select] Question 33 (This is a bonus question. This question is worth 2 points.) Which of the following scenarios can be best depicted by the graph above? ○ A disaster has occurred destroying a lot of physical capital. ○ Oil prices fall temporarily. ● Consumer confidence increases. O Household wealth increases.

Price level LRAS2 LRAS1 120 110 100 B A SRAS2 SRAS1 AD Y** Y* Real GDP (Y) Question 32 After the event happens, (a) which curve(s) shift(s) to which direction? [Select] (b) does real GDP increase, decrease, or remain unchanged? [Select] (c) does full-employment output increase, decrease, or remain unchanged? [Select] (d) what is the price level in long run after the event? [Select] (e) which point is the long run equilibrium after the event? [Select] Question 33 (This is a bonus question. This question is worth 2 points.) Which of the following scenarios can be best depicted by the graph above? ○ A disaster has occurred destroying a lot of physical capital. ○ Oil prices fall temporarily. ● Consumer confidence increases. O Household wealth increases.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter26: The Neoclassical Perspective

Section: Chapter Questions

Problem 21P: Use Table 26.3 to answer the following questions. Sketch an aggregate supply and aggregate demand...

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