The quantity of aggregate output demanded will fall if Select one: a. net taxes are reduced. b. the price level increases. c. government spending increases. d. Aggregate supply increases.
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- 1. As the aggregate demand curve shifts to the right: A)the price level falls and real GDP rises. B) the price level and real GDP both fall. C) the price level and real GDP both rise. D) the price level rises and real GDP falls .When production costs rise, in the short run: When production costs rise, in the short run: A. the aggregate-supply curve shifts down to the right B. the aggregate-demand curve shifts down to the left C. the aggregate-demand curve shifts up to the right D. the aggregate-supply curve shifts up to the left E. both the aggregate-demand curve and the aggregate-supply curve shift to the leftWhich circumstance would contribute to a relatively flat slope of the short-run aggregate supply curve?(a) An increase in investment spending on residential construction causes an increase in wages for skilled carpenters.(b) An increase in foreign tourists coming to the United States causes an increase in prices of lodging at resort destinations.(c) A high number of vacancies in a shopping mall allows retail tenants to take on larger spaces with no increase in rent.(d) An increase in consumption spending on home furnishings allows furniture stores to reduce the number of promotional discounts offered.
- 1. If Aggregate Supply (Short-Run) increase while Aggregate Demand remains constant, which of the following occurs: (Select all that apply) A. Recession B. Unemployment does not change. C. Inflation D. Equilibrium Price Level decrease E. Unemployment decreases F. Equilibrium RGDP increases 2. Which of the following statements would increase the Aggregate Demand curve? (select all that apply) A. Decrease in Government Spending B. Household's wealth decrease. C. Increased fear that a recession will cause workers to lose their jobs. D. A 20% decrease in personal income tax rates. E. Consumer's wealth increase40.The Great Depression showed that the short-run aggregate supply and the aggregate demand curves: A. must always intersect at full employment. B.can never lead to deflation. C.can intersect at output levels below full employment. D.must intersect at output levels above full employment.Unemployment would decrease and prices would increase if a. aggregate supply shifted left. b. aggregate demand shifted right. c. aggregate supply shifted right. d. aggregate demand shifted left.
- Which of the following would cause the aggregate supply curve to increase... Group of answer choices The government has reduced its spending by more than 10% over the last 2 years Throughout the economy, workers are using better equipment and output per hour is rising. Consumers are more confident and spending more than before. Energy prices such as gas and electricity have increased rapidly throughout the country.From 2006 to 2008 there was a dramatic fall in the price of houses. If this fall made people feel less wealthy, then it would have shifted a. aggregate demand left. b. aggregate demand right. c. aggregate supply left. d. aggregate supply right.Aggregate Demand will increase if: A. Imports fall. B. Investment falls. C. Consumption falls. D. Exports fall.
- 3. A fall in the price level shifts the aggregate supply curve upward and decreases the quantity of real GDP supplied. Answer: Reason: Page 2 of 53. Explain how each of the following will affect aggregate demand. In each case, draw a diagram to show the effect on the aggregate demand curve. (c) The government passes legislation that increases the rate of corporate taxes. (d) Inflation leads the central bank to increase the base interest rate.