Q7550250050 100 150 200 250 300 350 400QUANTITY OF OUTPUTThe following table lists several determinants of short-run aggregate supply.Fill in the table by indicating the changes in the determinants necessary to decrease short-run aggregate supply.Change Needed to Decrease ASInflation expectationsHuman capitalTechnology 6. Determinants of aggregate supplyThe following graph shows a decrease in short-run aggregate supply (AS) in a hypothetical economy where the currency is the dollar. Specifically, theshort-run aggregate supply curve shifts to the left from AS₁ to AS2, causing the quantity of output supplied at a price level of 100 to fall from $200billion to $150 billion.200AS₂1751501251007550PRICE LEVEL250050100IIIIIIIIIIIII150200s250AS₁300350400

The curve that depicts various quantities of goods and services being supplied at various price…

The following table lists several determinants of short-run aggregate supply. 4 Fill in the table by indicating the changes in the determinants necessary to decrease short-run aggregate supply. Change Needed to Decrease AS Inflation expectations Human capital Technology

The following table lists several determinants of short-run aggregate supply. 4 Fill in the table by indicating the changes in the determinants necessary to decrease short-run aggregate supply. Change Needed to Decrease AS Inflation expectations Human capital Technology

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Which of the following statements are true? Which are false? Explain why the false statements are…

A: The aggregate supply is the complete amount of products expected to be distributed by enterprises in…

Q: Suppose the Fed doubles the growth rate of the quantity of money in the economy. In the long run,…

Q: What is the primary cause of demand-pull inflation? an event that causes the short-run aggregate…

A: In macroeconomics, the SRAS and AD curve are key ideas. An essential instrument for analyzing an…

Q: Of all the influences on production plans, which influences are constant along the aggregate supply…

A: Aggregate supply depicts the relationship among the quantity of real GDP supplied and the price…

Q: Decide if the following events are Micro, shifting supply or demand, or Macro, shifting AD or AS.…

A: The branch of economics which studies the behaviour of individuals is called microeconomics.…

Q: Using aggregate demand and aggregate supply, graph the effects on the price level and GDP of each of…

A: "Since you have asked a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Which of the following would cause the long run aggregate supply to decrease? O. A civil war in the…

A: Aggregate supply refers to total supply of goods and services that is produced in an economy at a…

Q: Which of the following would lead to a shift of the long-run aggregate supply? a. increased capital…

A: A long-run aggregate supply is a vertical supply curve at the potential output level as it denotes…

Q: The following graph shows an increase in short-run aggregate supply (AS) in a hypothetical economy…

A: Aggregate supply is the quantity of goods supplied by all the firms in the economy at different…

Q: Which affect both the long-run and short-run aggregate supply curves? Choose all that apply. Group…

A: The LRAS curve and the SRAS curve depict the total output produced in an economy (Q) and the price…

Q: Question 8 Which of the following shifts both short-run and long-run aggregate supply left? a. a…

A: The SRAS curve represents the relationship between the P and the Q that firms are willing and able…

Q: Refer to the figure below. The aggregate supply curve shifting from AS1 t Price level РА Po - C…

A: Here, we have to find when aggregate supply curve shifting from AS1 to AS2 .

Q: Which of the following statements are true based on the previous graphs? Check all that apply. The…

A: The natural unemployment rate reflects the rate of unemployment corresponding to the potential level…

Q: Assume that nominal wages increase by 3% in the economy. As a result, we observe Question 32…

A: Nominal wages are money wages paid to workers or salaries paid to workers, which would result in the…

Q: Which of the following factors affect the Long-Run Aggregate Supply curve? Choose all that apply.…

A: The Long-Run Aggregate Supply (LRAS) curve shows the potential output of an economy in the long run,…

Q: Assume the Federal Reserve triples the growth rate of the quantity of money in circulation. In the…

A: Potential level output is the maximum output that an economy can produce using the given level of…

Q: Which of the following factors affect the Long-Run Aggregate Supply curve? Choose all that apply.…

A: The link between an economy's overall output and the price level over the long run, assuming all…

Q: LAS SAS2 130 D SASI 120 SASO 110 A. 100 AD2 90 AD1 ADO 14 15 16 17 18 19 Real GDP (trillions of 2009…

A: Demand-Pull Inflation: Demand-pull inflation is a period of inflation that arises from rapid growth…

Q: Which of the following is consistent with the theory of aggregate supply? a. An increase in the…

A: Aggregate supply refers to the sum of all the goods and services produced and sold at a particular…

Q: In 2003, the economy of Microtania had an aggregate demand and aggregate supply according to the…

A: Short-run equilibrium output occurs at the intersection of aggregate demand and short-run aggregate…

Q: Complete the table by indicating the change in each determinant necessary to increase aggregate…

A: The curve that depicts various quantities of goods and services being demanded by individuals at…

Q: What is the effect of an increase in the price level on the? short-run aggregate supply? curve?…

A: Aggregate supply refers to the overall supply of goods and services by an economy in a period of…

Q: Which of the following events will increase the long-run aggregate supply? a decrease in the general…

A: Long-Run Aggregate Supply : LRAS represents the total quantity of goods and services an economy can…

Q: Inflation rate In 2013, Prussia's aggregate demand curve was determined by the equation M + = 4%. A…

A: Aggregate demand represents the value of the total demand for goods and services in the economy. The…

Q: Assume that you live in a country that is a major importer of Russian oil. How will the Russian…

A: In the scenario you've described, being a major importer of Russian oil, your nation would likely be…

Q: Determine whether each of the following would cause a shift of the aggregate demand curve, a shift…

A: Aggregate demand curve shows quantity demanded for final goods at different price level. The…

Q: The following graphs show the state of an economy that is currently in Tong-run equilibrium. The…

A: Long Run Aggregate Supply function depicts the changes in output as a function of changes in prices…

Q: Complete the sentences with the correct term. Some options can be used more than once, and some may…

A: Inflation is the overall increase in the general price level in an economy. It, in a way, represents…

Q: Direction of LRAS Curve Shift The government allows more immigration of working-age adults who find…

A: Long run aggregate supply curve is the ability of an economy to produce goods and services to met…

Q: Now adjust the graph to show the new long-run equilibrium. What causes the economy to move from its…

A: The AD-AS framework, also known as the Aggregate Demand-Aggregate Supply framework, is a…

Q: 8. The sources of inflation During World War I and World War II, the U.S. government spent large…

A: The equilibrium is established where the aggregate demand and aggregate supply. The change in demand…

Q: What three factors affect long-run aggregate supply? A. Natural Resources, Technology, and…

A: In the long run there are three factors that affect aggregate supply.

Q: Which of the following causes the aggregate supply curve to shift inward? a. Increase in quantity of…

A: Aggregate demand refers to the total demand for goods and services. Moreover, there is an inverse…

Q: The short-run aggregate supply curve shows how ________ cause output to rise. Answer A. increases in…

A: The short run aggregate supply curve is a graphical representation which shows the relationship…

Q: If the dollar falls in value compared to other currencies, what will happen in the United States?…

A: When the dollar value depreciate compared to other currencies, then the US goods become less…

Q: Determine whether each of the following would cause a shift of the aggregate demand curve, a shift…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Which of these are consequences of an increase in long-run aggregate supply? an increase in…

A: Supply is defined as the stock of goods available on the market. The producers will produce goods on…

Q: What are the major factors causing a shift in aggregate demand (inward or outward)? What are the…

A: Answer: Aggregate demand: aggregate demand refers to the total demand for goods and services…

Q: Suppose the economy is in a situation of moderate unemployment, and then an exogenous increase of…

A: If the economy is in a situation of moderate unemployment in short run, it has ability to employ…

Q: Which of the following events increases aggregate supply? A. A decrease in potential GDP B. A rise…

A: There are multiple factors which could increase the aggregate supply in the short run i.e.…

Q: Assume the short-run aggregate supply curve can be expressed algebraically as: Y = 4,500 + 3,000π…

A: Short-run aggregate supply: Y = 4500 + 3000π Aggregate demand: Y = 5000 - 1000πWhere Y is output and…

Q: Everything else held constant, a change in workers' expectations about inflation will cause to…

A: If workers expect a change in future inflation, then it does have some implications.

Question

Q75
50
25
0
0
50 100 150 200 250 300 350 400
QUANTITY OF OUTPUT
The following table lists several determinants of short-run aggregate supply.
Fill in the table by indicating the changes in the determinants necessary to decrease short-run aggregate supply.
Change Needed to Decrease AS
Inflation expectations
Human capital
Technology

6. Determinants of aggregate supply
The following graph shows a decrease in short-run aggregate supply (AS) in a hypothetical economy where the currency is the dollar. Specifically, the
short-run aggregate supply curve shifts to the left from AS₁ to AS2, causing the quantity of output supplied at a price level of 100 to fall from $200
billion to $150 billion.
200
AS₂
175
150
125
100
75
50
PRICE LEVEL
25
0
0
50
100
II
II
II
II
I
II
I
I
150
200
s
250
AS₁
300
350
400

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Which only affects short run aggregate supply? Choose all that apply. Group of answer choices Inflationary expectations Input prices Saving Technology Number of resources
What effects would each of the following have on aggregate demand or aggregate supply? Justify your answer. In each case use a diagram to show the expected effects on the equilibrium price level and real output level in the economy. Assume that all other things remain constant and prices are inflexible downward. (a) A reduction in interest rates at each price level (b) A sizable increase in labor productivity. (c) The nation’s currency appreciates against its major trading partners .
What effects would each of the following have on aggregate demand or each case use a diagram to show the expected effects on the equilibrium price level and level of real output. Assume that all other things remain constant. aggregate supply? In a. A widespread fear of depression on the part of consumers. AD curve (right, left), output (up, down) and price level (up, down) (assuming no ratchet effect). b. The expectation of rapid inflation. AD curve (right, left), output (up, down) and price level (up, down). с. A sizable increase in labor productivity (with no change in nominal wages). AS curve (right, left), output (up, down) and price level (up, down). d. Depreciation in the international value of the dollar. AD curve (right, left) (increased net exports); AS curve (right, left) (higher input prices)
The graph shows the aggregate demand (AD) curve and the long-run aggregate supply (LRAS) curve for a hypothetical economy. Suppose that the economy observes an increase in the human capital of workers, causing productivity to rise. Show the effect of this change by shifting one of the curves in the graph. LRAS How will this change affect the rate of inflation? Inflation will fall Inflation will rise, Inflation will be unchanged. AD How will this change affect the growth rate? Real GDP growth rate The growth rate will decrease. The growth rate will increase. The growth rate will be unchanged.
QUESTION 9 The graph below reflects a significant increase in world oil prices. What will the impact on aggregate supply most likely lead to? Price Level P₂ P₁ Y2 Yi AS' AS AD Real National Income a. an increase in economic growth b. an increase in input prices c. a decrease in the natural unemployment rate d. less inflationary pressures
39 Which of the following will cause a shift in the short-run aggregate supply curve? a.An increase in government spending b.A change in expected inflation c.Unanticipated inflation d.A change in investment e.A decrease in government spending
1) What effects might each of the following have on aggregate demand/aggregate supply? In each case use a diagram to illustrate the effect, explain why shifts occurred, and state the impact of each event on the price levels, the unemployment rate, and real GDP. a. Congress passes into law a $1.5 billion cut in personal income taxes. b. Significant technological advances in the renewable energy sector decrease the price of all electricity by 50% c. Increases in consumer confidence lead to a positive demand shock.
If investment as a fraction of GDP rose substantially and then stayed at a high level, what would be the effect on aggregate supply over time? It will shift both the SRAS and LRAS right. It will shift the SRAS right, but not the LRAS. It will shift the LRAS to the left, but not the SRAS. It will shift both the SRAS and the LRAS left.
The downward-sloping aggregate demand curve indicates that, ceteris paribus: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. there is an inverse relationship between demand and the average level of prices. a b a greater quantity of real GDP will be demanded at higher price levels than at lower price levels. C d a decrease in the price level leads to an increase in the quantity demanded of real GDP. inflation and output are directly related.
Figure 9-2 Price Level LRAS RGDP, RGDPR RGDP SRAS, SRAS AD Refer to Figure 9-2. Which of the following is indicated by a shift from SRASO) to SRAS 1? Question 23 options: cost-push inflation increasing SRAS demand-pull inflation increasing aggregate demand