The long-run aggregate supply curve shifts right if the capital stock decreases. O the government increases some environmental regulations that limit production methods. there is good weather for growing crops. None of the answers is correct.

Q: Which cost of production is the most influential in short-run aggregate supply and how does the…

A: Aggregate Supply The aggregate supply is the relationship between an economy's price level and…

Q: A change in which one of the following factors would shift the aggregate supply curve? Multiple…

A: Answer: Option A (Government regulation) Explanation: Government regulation such as an increase in…

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: Draw lines for the long-run aggregate supply curve. Explain its shape and what can cause it to move…

A: Macroeconomics is the study of the entire economy, which necessitates juggling many different ideas,…

Q: Which of the following would cause an increase in the price level in the long run? Choose one:A.…

A: Price level refers to the monetary value of a goods or services that is sold in the market. In a…

Q: What happens when interest rates increase? SAND

A: Interest rate plays an important role in the consumption and investment decisions of people and…

Q: Give an example of an event which causes the economy to go from point D to point B in the long run.

A: The above graph shows the short run and long run equilibrium of an economy.

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 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 aggregate supply curve shows the relationship between real GDP and the average price level. a.…

A: Aggregate Supply  The total output of finished products and services produced by the domestic…

Q: The long-run aggregate supply curve shifts right if   immigration from abroad increases. the capital…

A: The long-run aggregate supply curve shows the potential output of the economy in the long run. It…

Q: Which of the following shifts aggregate supply to the right?   a. a decline in the price of…

A: The model of AD-AS describes the factors that determine the total demand and total supply in the…

Q: Which range of aggregate supply would represent an economy where prices are rising as output…

A: The aggregate supply of a country's economy is its output of goods and services. The four production…

Q: The Canadian government increases its expenditure on goods and services in a time of war or…

A: The measure that depicts the final value of goods and services within an economy during a specified…

Q: 2. Short-run Aggregate Supply and the Phillips Curve Suppose that the economy is populated by two…

A: As per the given information Firms set their prices as per sticky price and flexible price θ…

Q: Which of the following would shift the long-run aggregate supply curve to the right?a. a decrease in…

A: The long-run aggregate supply curve represents the total amount of goods and services supplied in an…

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: How does the aggregate demand and aggregate supply looks in the long run. Explain with the help of a…

A: Aggregate demand: It is the sum total of the final value of all the goods and services that have…

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

A: The total supply of goods and services produced in an economy within an aspect time period is called…

Q: If the price level rises and the money wage rate  rises by the same percentage, what happens to the…

A: Answer: The quantity of real GDP will not change and there will be an upward movement along the…

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: How does an increase in aggregate demand affect output, unemployment, and the price level in the…

A: AD(aggregate demand) curve, shifts to the right(increases) when its components rise. The components…

Q: Which of the following are assumed to remain unchanged along a given short-run aggregate supply…

A: The aggregate supply curve depicts the quantity of real GDP that is supplied by the economy at…

Q: When identifying inputs that expand the circular flow and increase aggregate supply, economists do…

A: Circular flow model explains how an economy functions. It analyses the way goods, services and money…

Q: Changes in what four variables will shift the long run aggregate supply curve?

A: (Q) Changes in what four variables will shift the long run aggregate supply curve?

Q: Which only affects short run aggregate supply? Choose all that apply. Group of answer choices…

A: The aggregate supply refers to the total supply of all finished commodities produced in an economy…

Q: Changes in short-run aggregate supply can be caused by changes in: Selected Answer: C. government…

A: Following equation is used to determine SRAS  Y = Y* + α(P-Pe) Y* natural level of output  P  Price…

Q: Explaining short-run economic fluctuations

A: Aggregate demand curve is a downward sloping curve indicating the negative relationship between…

Q: Why does the short-run aggregate supply curve slope upward to the right? If the prices of both (a)…

A: Aggregate supply is the total amount of services and commodities that firms in an economic plan to…

Q: Are all prices in the economy equally inflexible? Which ones show large amounts of short-run…

A: In economics, short-run flexibility refers to the ability of a firm or industry to adjust its…

Q: Suppose that the economy is at long-run equilibrium. If there is a sharp decline in the stock market…

A: Financially, those for migration contend that settlers help the economy by expanding the work supply…

Q: The long-run aggregate supply curve shifts right if Answer immigration from abroad increases. the…

A: The aggregate supply refers to the total quantity of all the goods, and services produced in an…

Q: The government passes a law that all employees must double the wage they are paying their workers.…

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

Q: In the aggregate demand and aggregate supply model, when does the aggregate quantity of goods…

A: In AD/AS model, the aggregate demand curve will increase or shift to the right when any of the…