The Australian economy is initially in long-run equilibrium. The import price of industrial machinery, which it uses for production, now falls. In the short run: the aggregate demand curves shifts left and the short-run aggregate supply curve shifts right. the aggregate demand curve does not shift and the short-run aggregate supply curve shifts right. the aggregate demand curve shifts left and the short-run aggregate supply curve does not shift. the aggregate demand curve shifts right and the short-run aggregate supply curve does not shift. the aggregate demand curve does not shift and the short-run aggregate supply curve shifts left.

The Australian economy is initially in long-run equilibrium. The import price of industrial machinery, which it uses for production, now falls. In the short run: the aggregate demand curves shifts left and the short-run aggregate supply curve shifts right. the aggregate demand curve does not shift and the short-run aggregate supply curve shifts right. the aggregate demand curve shifts left and the short-run aggregate supply curve does not shift. the aggregate demand curve shifts right and the short-run aggregate supply curve does not shift. the aggregate demand curve does not shift and the short-run aggregate supply curve shifts left.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section23.4: The Aggregate-supply Curve

Problem 4QQ

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Question

Question 2

The Australian economy is initially in long-run equilibrium. The import price of industrial machinery, which it uses for production, now falls. In the short run:

		the aggregate demand curves shifts left and the short-run aggregate supply curve shifts right.
		the aggregate demand curve does not shift and the short-run aggregate supply curve shifts right.
		the aggregate demand curve shifts left and the short-run aggregate supply curve does not shift.
		the aggregate demand curve shifts right and the short-run aggregate supply curve does not shift.
		the aggregate demand curve does not shift and the short-run aggregate supply curve shifts left.

Definition Definition Total supply of goods and services in an economy at a certain price level in a specific time period.

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Question 18
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