The Great Depression showed that the short-run aggregate supply curve and the aggregate demand curve 1. can never lead to deflation. 2.can intersect at output levels below full employment. 3.must always intersect at full employment. 4.must intersect at output levels above full employment.

Q: Indicate whether the descriptions that follow are short-run aggregate supply curves, long-run…

A: Short-run aggregate supply curve:- The amount of overall production that will be generated at each…

Q: What economic problem is shown in the graph provided?    a. Recession b. Inflation c. Economic…

A: Aggregate demand (AD) is the overall demand of goods and services by an economy in a period of time.…

Q: Starting with a short run and long run equilibrium, assume a war breaks out, then," a.government…

A: Short-run equilibrium occurs at the intersection point of the short-run aggregate supply (SRAS) and…

Q: equilibrium. IT e is a nevW economy is computer chip introduced which is 5x faster and 10x cheaper…

A: When the aggregate amount of output demanded equals the aggregate amount of output supplied, an…

Q: 1. The aggregate supply (AS) - aggregate demand (AD) model can be used to analyze short run economic…

A: In economics, understanding the differentiation between the short run and the long run is critical.…

Q: The economy is in long-run equilibrium when a. Aggregate demand intersects short-run aggregate…

A: When the economy is operating at potential Gross Domestic Product, the unemployment rate is at the…

Q: True or false The aggregate supply curve is vertical in the long run at the full-employment level…

A: According to the given question Answer is TRUE

Q: Which of the following would most likely shift the aggregate demand curve to the left? OA Increased…

A: Meaning of Aggregate Demand and Aggregate Supply: The term aggregate demand refers to the…

Q: m price level will fall, and the equilibrium level of GDP will fall.   B. Aggregate demand will…

A: 1. When consumers and businesses tend to have negative expectations about the future level of…

Q: Question 42 The total of all planned production for the entire economy is known as O aggregate…

A: Aggregate demand and aggregate supply are the two factors that lead to determination of price level…

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: Cyclical unemployment is caused by the recession to expansion. Osupply: moving to the right Odemand;…

A: Cyclical unemployment occurs due to the changes in unemployment due to economic expansions and…

Q: Price level (GDP price index, 2005 = 100) 140 + 130 120+ 110 100 + AD ADo 90 AD2 11.5 12.0 12.5 13.0…

A: The movement along the AD curve would be due to : Change in the price level Change in real GDP So…

Q: If aggregate supply decreases, then inflation _______________ and unemployment _______________.…

A: Aggregate supply is the the quantity of the goods and services produced in an economy and the price…

Q: _______ of unemployment during ________ make it easier for workers to ________ wages. High levels; a…

A: When talking about unemployment and wage rate, it can be said that when labor demand exceeds labor…

Q: Suppose that political instability in the Middle East interrupts the supply of oil. The and prices…

A: Short Run Aggregate Supply (SRAS):The principal effect of an oil supply disruption is on short-term…

Q: Structural unemployment issue will remain there under a. Keynesian zone of aggregate supply b.…

A: Structural unemployment will remain under keynesian aggregate supply because firms may not hire more…

Q: Moving along the potential GDP line, when the price level changes, the i. real wage rate stays at…

A: This can be defined as a concept that shows the power of purchasing of products and services from…

Q: Aggregate demand will shift to the right, if: Selected Answer: B. the aggregate price level…

A: Aggregate demand is the sum of current output demands by each of the economy's buying sectors. It…

Q: The model of aggregate demand/aggregate supply... A) Identifies the potential GDP and price level…

A: The answer is - B) Identifies the equilibrium GDP and price level as well as the gap between the…

Q: Price level 70 80 90 100 Real GDP demanded (billions of 2009 dollars) 825 750 675 600 Real GDP…

A: The equilibrium is reached where the aggregate demand and aggregate supply are equal.

Q: The experience of the 1970s taught economists that changes in:   a. both aggregate demand and…

A: 1970s witnessed a series of macroeconomic disasters as inflation and unemployment spiralled to…

Q: 1.The economy of Country X is in equilibrium at full employment. (a) Draw a correctly labeled graph…

A: Equilibrium in an economy is the point where the aggregate supply of that economy is equal to the…

Q: Time 1.During an expansion GDP is (increasing/decreasing) O Increasing O Decreasing

A: Business cycle explains the ups and downs in the economy over a period of time. It shows cyclical…

Q: The short-term aggregate supply curve is the relationship between the amount of real GDP supplied…

A: Since you have posted multiple questions. But according to answering guideline, we are supposed to…

Q: c) The unemployment rate is the number of Group of answer choices people looking for work divided by…

A: The unemployment rate is the number of (group answer choices):- People looking for work divided by…

Q: a. How does real wage influence the labor market that ever aggregate supply (LRAS) and short run…

A: The aggregate supply of a country is the total amount of goods and services it produces and sells.…

Q: 2. During recessions, output a and unemployment both fall b. and unemployment both rise c. rises,…

A: 2) Recession refers to a massive decrease in economic activities, which is usually caused by…

Q: Explain the macroeconomics in the context of following; a. Aggregate supply and demand b. Shifts in…

A: Macroeconomics is studied to learn about to broader components of an economy, such as AD-AS,…

Q: If the economy goes into a recessionary gap, a) What will be the effect on the labor market? b) What…

A: Introduction Recessionary gap is the difference between real GDP and potential GDP. Here actual…

Q: Exhibit 14-2 Price Level A B Real GDP In Exhibit 14-2, which curve represents short-run aggregate…

A: The total quantity (Q) of goods and services that all firms in an economy are willing and able to…

Q: Refer to Figure. If the economy starts at c and 1, then in the short run, where does a decrease in…

A: Taxation imposed on goods results in higher investment as common people find it beneficial to invest…

Q: 5.2 Explain why the long-run aggregate supply curve is vertical. Then, explain how each of the…

A: You have asked multiple questions. We will answer the first question for you. If you want any…

Q: If the short-run aggregate supply curve (SRAS) is horizontal, then an increase in aggregate demand…

A: The correct option for the above-mentioned question is (c).

Q: Economics    Which of the following will reduce the price level and real output in the short run?…

A: In economics, the short run refers to a period of time during which some factors of production are…

Q: Which items describe long-run aggregate supply (LRAS), and which ones describe short-run aggregate…

A: LRAS or Long-Run Aggregate Supply:- Reflects the economy's potential output at full employment.-…

Q: The national economy goes up and down like a roller coaster over time Real GDP Inflation…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Long run macroeconomic equilibrium occurs when a.         aggregate demand equals short run…

A: The potential output refers to the output level that gets produced when all resources of the economy…

Q: Which of the following will increase both the​ short-run and​ long-run aggregate supply​ curves? A.…

A: A supply curve is a curve shows the relationship between the price of a good and the services and…

Q: Suppose that aggregate supply deceases while aggregate demand held constant. a. What happens to the…

A: "A short-run aggregate supply curve (depicts the amounts of total output supplied in an economy at…

Q: Suppose that the E.U. economy goes into an expansion. Canadian real GDP​ ________ and Canadian…

A: The expansion in the economy occurs when the economic activities are given a boost in the…

Q: A vertical long-run aggregate supply curve shows that: (a) wages and prices are sticky. (b) changes…

A: the vertical AS curve means that the at each level of price we have the same level of output or…

Q: The long-run aggregate supply curve reflects the amount of potential production when we are in full…

A: In an economy, macroeconomics deal with variables that Influence the economy as a whole and give…

Q: The aggregate supply shifts to the right if: A. supplies of resources increase. B. investment…

A: The aggregate supply curve movements to one side as productivity increases or the cost of key…