Suppose our exports to Canada fall because of their recession. On impact, our will shift downward. Eventually, our will shift downward and the new equilibrium tt will be ADT; AST; higher O b. AST; ADT;; higher OC. AST; ADTt; lower O d. ADT; ASTt; lower

Suppose our exports to Canada fall because of their recession. On impact, our will shift downward. Eventually, our will shift downward and the new equilibrium tt will be ADT; AST; higher O b. AST; ADT;; higher OC. AST; ADTt; lower O d. ADT; ASTt; lower

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose our exports to Canada fall because of their recession. On impact, our
will shift downward. Eventually, our
will shift
downward and the new equilibrium Tt will be
O a. ADT; ASīt; higher
O b. AST; ADt; higher
AST; ADTt; lower
O d. ADT; AST; lower

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Question 6 Which of the following characteristics is NOT consistent with an upward-sloping AS curve? O when forecasted future prices increase, the AS curve shifts upward. a rise in the firms' pricing power will lead to a rise in the aggregate price. the AS curve passes through a point that corresponds to the natural level of national income and stable price. O as inflation rises output growth falls
Question 35 Suppose real estate analysts expect that 100,000 homes will be needed in a particular community by 2014. If the current number of homes in the community is only 50,000, we can expect to see a significant increase in the demand for investment. True O False
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With the passage of time, which of the following will help direct this economy in Figure 10-21 toward its potential long-run rate of output (e1 to E2)? Figure 10-21 Price Level ti LRAS E₂ SRAS, SRAS: AD₂ AD₁ Y, Y₁ Goods and Services (Real GDP) Output is initially less than long-run capacity O lower interest rates that will stimulate AD and lower resource prices that will increase SRAS O higher interest rates that will reduce aggregate demand and higher resource prices that will reduce SRAS lower interest rates and higher resource prices, both of which will stimulate aggregate demand O higher interest rates that will reduce SRAS and lower resource prices that will stimulate aggregate demand
In 2001, the United States was in recession. Which of the following things would you not expect to have happened? Select one: O increased layoffs and firings a higher rate of bankruptcy O increased claims for unemployment insurance O increased investment spending
When the economy enters a recession, your employer is_ to reduce your wages because unlikely; lower wages 1) reduce productivity and morale likely; output prices 2) always fall during recession unlikely; output and 3) input prices generally fall during recession likely; aggregate 4) demand is vertical in the long run
Price level LRAS AS1 Figure 12.8 C B A ASO AS₂ AD₁ ADO E Y2 Yo Y₁ Aggregate output ($ billion) AD₂ Refer to Figure 12.8. This economy cannot continue to produce Y₁ (or at point B) because O the price of raw material will increase, shifting the aggregate demand curve to AD2. O all of the above O the price of raw material and wages will increase shifting the aggregate supply curve to AS₁. O the price of inputs will decrease, shifting the aggregate supply curve to AS2.
Which of the following would cause the Aggregate Supply curve to move from AS to AS2 in the graph below? A) A general increase in energy and labor cost for businesses. B) A general decrease in labor cost for businesses. C) An increase in productivity. D) A federal government increase in spending.
below is a SRAS euqation. Y=200+ 0.4(P−10) - If the long-run equilibrium output changed to 250, how would the output level change: Decrease, Increase,or No change? - Additionally, if the equilibrium output stayed at 200 but if the expected price changed to 8, how would the output level change: Decrease, Increase, or No change