48 Use the following graph to answer the next seven questions. The graph depicts aneconomy where aggregate demand and long-run aggregate supply (LRAS) havedecreased. Short-run aggregate supply (SRAS) is not shown; it has decreased, as well.Price leelLRAS JURASReal GDPOn the graph, we see that long-run aggregate supply decreased during the GreatRecession. This was because of a decline in housing prices and the subsequentfinancial crisis. Why did these factors cause long-run aggregate supply to decrease?a) They caused oil and gas prices to increase, causing inflation.O b) They caused household wealth and expected income to decline.OC) They caused permanent changes in the market for loanable funds.O d) They caused unemployment to remain at normal levels.O e) They caused deflation and an increase in the value of the dollar.

The graph given above depicts an economy where the aggregate demand and the long run aggregate…

Ral GDP the graph, we see that long-run aggregate supply decreased during the Great ession. This was because of a decline in housing prices and the subsequent ncial crisis. Why did these factors cause long-run aggregate supply to decrease? a) They caused oil and gas prices to increase, causing inflation.

Ral GDP the graph, we see that long-run aggregate supply decreased during the Great ession. This was because of a decline in housing prices and the subsequent ncial crisis. Why did these factors cause long-run aggregate supply to decrease? a) They caused oil and gas prices to increase, causing inflation.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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