Price Level O AS₁ a ASO O b c Real GDP Refer to the figure above. If aggregate supply is AS, and aggregate demand is ADo. then: a surplus of real output of gh would f represents a price level that would result in a surplus of real output of ac f represents a price level that would result in a shortage of real output of ac f represents a price level that would result in a surplus of real output of a at any price level above g. a shortage of real output would occur occur

Price Level O AS₁ a ASO O b c Real GDP Refer to the figure above. If aggregate supply is AS, and aggregate demand is ADo. then: a surplus of real output of gh would f represents a price level that would result in a surplus of real output of ac f represents a price level that would result in a shortage of real output of ac f represents a price level that would result in a surplus of real output of a at any price level above g. a shortage of real output would occur occur

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Price level Potential output SRAS P3 PI P2 Real GDP Y1 Y3 Refer to Exhibit 10.1, which shows the short-run aggregate supply (SRAS) curve of an economy. At a price of P2, firms will O supply less than potential output. O supply more than potential output. O supply potential output. O increase prices. O decrease prices.
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plz answer correct explain Aasp Dont answer by pen pepar
An improvement in the level of technology in an economy will result in An upward movement along the aggregate supply curve An outward shift of the aggregate supply curve O A downward movement along the aggregate supply curve An inward shift of the aggregate supply curve
The long-run aggregate supply curve relates the aggregate price level to real GDP O in the short run. after factor prices are fully adjusted to eliminate output gaps. O when the wage level is not responding to the output gaps. when technology is improving the labour productivity.
Assume this economy is currently producing full-employment real GDP of B at a current price level of E. What would happen in the short run if wages increase?
Real wage X Figure 5: The supply side of the economy Output WS PS Consider Figure 5, which represents the supply side of the economy. Which point on the diagram, matches this description of what is happening: Real wages are on a rising trend
Along the long-run aggregate supply curve, the level of Real GDP supplied with increases in the price level. O does not change O increases O decreases slightly O decreases dramatically
Consider the graph below. Suppose that the economy is at point A Price Level LRAS SRAS A AD + Y (GDP) Currently, this economy Select in the long run, what will happen in this economy? The ISelect) curvets) will ISelect) because ISelect The price level will Select) GDP will (Select)
Refer to Figure 12-3. Suppose the economy is at point C. If investment spending decreases in the economy, where will the eventual long-run equilibrium be? Figure 12-3 Price level (GDP deflator, 2000100) OA O O B C D LRAS SRAS, SRAS * AD₁ AD₂ 0 None of the above Real GDP (trillions of 2000 dollars)
f Country X is currently at full employment. A fall in future profit will reduce SAS and hence increase price and real GDP. reduce LAS and hence raise price but reduce real GDP. reduce AD and hence raise price and real GDP. reduce AD and hence reduce price and real GDP.
In the AD-AS model with an upward-sloping AS-curve, a decrease in oil prices will Multiple Choice O O O increase prices and output in the long run decrease prices and increase output in the short run increase prices and decrease output in the long run decrease prices and output in the short run decrease prices but have no effect on output in the short run