The figure above shows the aggregate supply (AS), aggregate demand (AD), and potential GDP (YP). Assuming that there are no shocks to the economy, which point represents the long-run equilibrium? Question 3Answer a. Point C b. None of the indicated points c. Point B d. Point A

The figure above shows the aggregate supply (AS), aggregate demand (AD), and potential GDP (YP). Assuming that there are no shocks to the economy, which point represents the long-run equilibrium? Question 3Answer a. Point C b. None of the indicated points c. Point B d. Point A

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

The figure above shows the aggregate supply (AS), aggregate demand (AD), and potential GDP (Y_P).

Assuming that there are no shocks to the economy, which point represents the long-run equilibrium?

Question 3Answer

Point C

None of the indicated points

Point B

Point A

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Similar questions

1. The long-run aggregate supply curve reflects the amount of potential production when we are in full employment.Answer: True False 2. Long-term macroeconomic equilibrium occurs when short-term aggregate supply intercepts aggregate demand and long-term aggregate supply at the same point.Answer: True False 3. An economic cycle is the periodic but irregular movement of ups and downs in production; and is measured by fluctuations in nominal GDP.Answer: True False
I just want the answer of 9(d). there is no need to answer a,b,c.
Which only affects short run aggregate supply? Choose all that apply. Group of answer choices Inflationary expectations Input prices Saving Technology Number of resources
Find the attached file.
Macroeconomics - Keynesian Math
On the graph, label your starting AD line as AD 2019. Draw a new AD line showing the change to AD due to the pandemic. Label your starting SRAS line as SRAS 2019. Draw a new SRAS line showing the change to supply due to the pandemic.Label the new short-run equilibrium RGDP and Price Level. Does output (i.e. RGDP) increase or decrease in your model? Does the price level increase or decrease in your model? According to the AD-AS model when RGDP falls the unemployment rises and vice versa. Does your graph indicate an increase or decrease in the unemployment rate
Note: The hand written solution is not allowed.
Oil price shocks have an evident impact on the short run aggregate supply curve. With the help of a graph demonstrate how rising oil prices affect the SRAS and explain what other factors can cause this shift.
Assuming a stable short-run supply curve, what will happen if there is a shift in aggregate demand? a) Profits and output increase in the long-run. b) Unemployment decreases in the long-run. c) Profits and output decrease in the short-run. d) Unemployment increases in the short-run. e) Unemployment and prices move in opposite directions in the short-run.
Suppose the economy is initially at K. Which of the following statements best explains how the economy responds to restore long-run macroeconomic equilibrium? Select one: a. Over time, the aggregate demand curve will shift to the right until long-run equilibrium is restored at J and the gap is closed. b. Rising unemployment puts pressure on nominal wages to fall. The SRAS curve shifts right to SRAS1 closing the gap at H. c. In response to rising prices, firms will increase production moving along SRAS2 until long- run equilibrium is restored at J and the gap is closed. d. Rising unemployment puts pressure on nominal wages to fall. Firms employ more workers moving along SRAS2 until long-run equilibrium is restored at J and the gap is closed.
Please answer all parts Not a previously submitted question
Solutions for c,d and e