The short - run aggregate supply curve slopes upward. According to the sticky - wage theory of the short - run aggregate supply curve, if workers and firms expected prices to rise by 4 percent, but instead they rise by 2 percent, then a. employment falls and production rises. b. employment rises and production falls. c. both employment and production rise. d. both employment and production fall.

The short - run aggregate supply curve slopes upward. According to the sticky - wage theory of the short - run aggregate supply curve, if workers and firms expected prices to rise by 4 percent, but instead they rise by 2 percent, then a. employment falls and production rises. b. employment rises and production falls. c. both employment and production rise. d. both employment and production fall.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section23.4: The Aggregate-supply Curve

Problem 4QQ

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Similar questions

16. Why is the aggregate supply curve completely vertical in the long run? A. Short-run business cycles do not affect short-run output. B. Aggregate supply is impossible to illustrate in the long run. C. A country’s total output will always be constant. D. A country’s total output is not affected by price in the long run.
4.
4.1 Why does the short-run aggregate supply curve slope upward? 4.2 Explain why the long-run aggregate supply curve is vertical. Then, (verbally and graphically) explain how each of the following events would affect the long-run aggregate supply curve. a. A lower price levels b. A decrease in the labor force c. A decrease in the quantity of capital goods d. Technological change
Q35 The positive relationship between short-run aggregate supply and the price level indicates that, in the short run, Select one: a. firms produce more output as the price level rises. b. the money wage rate increases when moving along the short-run aggregate supply curve. c. lower price levels are more profitable for firms. d. firms produce more output as the price level falls.
All of 5.2 and 5.3 please. I don’t really know how to explain nor how to show.
Explain about the following graphs:
28. Which of the following is a determinant of the height of the aggregate supply curve? Select one: a. Consumption. b. Costs of production. c. Investment. d. The trade balance. e. Government expenditure.
4. Explain whether each of the following events shifts the short-run aggregate-supply curve, the aggregate-demand curve, both, or neither. For each event that does shift a curve, note the direction. • Households decide to save a larger share of their income. • Florida orange groves suffer a prolonged period of below-freezing temperatures. Increased job opportunities overseas cause many people to leave the country. A pandemic causes 500,000 deaths and millions infected. • .
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 left
11. Using aggregate demand, short-run aggregate supply, and long-run aggregate supply curves, explain the proc- ess by which each of the following economic events will move the economy from one long-run macroeconomic equilibrium to another. Illustrate with diagrams. In each case, what are the short-run and long-run effects on the aggregate price level and aggregate output? a. There is a decrease in households' wealth due to a decline in the stock market. b. The government lowers taxes, leaving households with more disposable income, with no correspond- ing reduction in government purchases.
A change in the expected price level shiftsa.the aggregate-demand curve.b.the short-run aggregate supply-curve,but not the long- run aggregate supply-curve.c.the long-run aggregate supply-curve,but not the short- run aggregate supply-curve.d.both the short-run and the long-run aggregate supply-curve
Which of the following is consistent with the theory of aggregate supply? a. An increase in the expected price level shifts the short-run aggregate-supply curve to the left, and an increase in the actual price level shifts the short-run aggregate supply to the left. b. An increase in the expected price level shifts the short-run aggregate-supply curve to the right, and an increase in the actual price level shifts the short-run aggregate supply to the right. c. An increase in the expected price level shifts the short-run aggregate-supply curve to the left, and an increase in the actual price level does not shift the short-run aggregate supply. d. An increase in the expected price level shifts the short-run aggregate-supply curve to the right, and an increase in the actual price level does not shift the short-run aggregate supply. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of…