Price level (GDP deflator, 2012=100)What happens in the economy when firms are no longer able to meet the demand for their output?Draw an aggregate demand curve. Label it AD.135-Draw an aggregate supply curve. Label it AS.125-Draw a point at the short-run macroeconomic equilibrium. Label it 1.Draw a point on the AS curve at which firms are unable to meet the demand for their output. Label it 2.115-PricesWhen firms are unable to meet the demand for their output,105-A. short-run aggregate supply is greater than long-run aggregate supply;rise95-O B. the quantity of real GDP demanded is greater than the quantity of real GDP supplied;riseC. aggregate demand is greater than short-run aggregate supply;85+18.019.020.021.022.0riseReal GDP (trillions of 2012 dollars)D. the quantity of real GDP supplied is greater than the quantity of real GDP demanded;>>> Draw only the objects specified in the question.fallClick the graph, choose a tool in the palette and follow the instructions to create your graph.MacBook AirDDDIIF10F9F8888F7F6吕0F5F4F3F2escF1&23$8!@53412YWERQtabつKG

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What happens in the economy when firms are no longer áblé to meet the demand f1ör their Butput Draw an aggregate demand curve. Label it AD. 135 Draw an aggregate supply curve. Label it AS. 125 Draw a point at the short-run macroeconomic equilibrium. Label it 1. Draw a point on the AS curve at which firms are unable to meet the demand for their output. Label it 2. 115 Prices When firms are unable to meet the demand for their output, 105 O A. short-run aggregate supply is greater than long-run aggregate supply: rise O B. the quantity of real GDP demanded is greater than the quantity of real GDP supplied3; rise 95- OC. aggregate demand is greater than short-run aggregate supply: 85+ 18.0 20.0 21.0 220 19.0 Real GDP (trillions of 2012 dollars) rise O D. the quantity of real GDP supplied is greater than the quantity of real GDP demanded; >>> Draw only the objects specified in the question fall

What happens in the economy when firms are no longer áblé to meet the demand f1ör their Butput Draw an aggregate demand curve. Label it AD. 135 Draw an aggregate supply curve. Label it AS. 125 Draw a point at the short-run macroeconomic equilibrium. Label it 1. Draw a point on the AS curve at which firms are unable to meet the demand for their output. Label it 2. 115 Prices When firms are unable to meet the demand for their output, 105 O A. short-run aggregate supply is greater than long-run aggregate supply: rise O B. the quantity of real GDP demanded is greater than the quantity of real GDP supplied3; rise 95- OC. aggregate demand is greater than short-run aggregate supply: 85+ 18.0 20.0 21.0 220 19.0 Real GDP (trillions of 2012 dollars) rise O D. the quantity of real GDP supplied is greater than the quantity of real GDP demanded; >>> Draw only the objects specified in the question fall

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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R T 3. Price level B K SAS 1 SASO Real output C. an increase in aggregate demand. D. a decrease in aggregate demand. IUO Refer to the graph shown. A movement from A to C is most likely to be caused by: A. an increase in input prices. B. a decrease in input prices. NG
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Which of the following could potentially cause a recession? O AD increases, and wages are sticky. O AD increases, and wages are flexible. O AD falls, and wages are flexible. AD decreases, and wages are sticky.
Which of the following would cause the Aggregate Supply curve to move from AS to AS2 in the graph below? Price Level 150 140 130 120 110 100 90 80 70 60 0 5 10 15 Real GDP ($ billion) AS -AD-AS2 O A federal government increase in spending. O A general increase in energy and labor cost for businesses. O An increase in productivity. O A general decrease in labor cost for businesses. 20 25
ans ences rations If in Year 1 the price level was 100 and real GDP was $20 trillion and in Year 2 the price level was 105 and real GDP was $21 billion, then the predominant change that occured in Year 2 was OA a decrease in aggregate demand. B. an increase (shift to the right) in short-run aggregate supply. OC. a decrease (shift to the left) in short-run aggregate supply OD. an increase in aggregate demand.
Suppose now the government passes a law that significantly increases the minimum wage. This change in policy will cause the natural rate of unemployment to which will: • Shift the long-run aggregate supply curve to the right O Not impact the long-run aggregate supply curve O Shift the long-run aggregate supply curve to the left Complete the following table by determining how each event impacts the position of the long-run aggregate supply (LAS) curve. Direction of LRAS Curve Shift A government-sponsored training program increases the skill level of the workforce. Many workers leave to pursue more lucrative careers in foreign economies. A scientific breakthrough significantly increases food production per acre of farmland.
Price level Potential output SRAS P3 PI P2 Real GDP Y1 Y3 Refer to Exhibit 10.1, which shows the short-run aggregate supply (SRAS) curve of an economy. At a price of P2, firms will O supply less than potential output. O supply more than potential output. O supply potential output. O increase prices. O decrease prices.
3. What is the difference between the long-run aggregate supply (LRAS) and the short-run aggregate supply (SRAS) curves? Give examples of factors that decrease SRAS. Which way does the SRAS curve shift?
Which of the following causes the short-run aggregate supply curve to shift to the right? O A. an increase in the expected price of an important natural resource B. a positive technological change O C. a higher expected future price level O D. a decrease in the capital stock
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Suppose the government reduces the corporate income tax rate. This will increase the return to firms for investing, which should investment and cause in capital in the long run. Show the long-run effect of this reduction in corporate tax rates on long-run aggregate supply. 1.) Use the line drawing tool to show the effect on long-run aggregate supply, Properly label this lino, 2.) Use the point drawing tool to show the new long-run equilibrium on the graph. Label this point 'B'. Carefully follow the instructions above, and only draw the required objects. The long-run impact of a reduction in corporate tax rates would be OA a decrease in long-run potential output while actually reducing inflation.. OB. an decrease in long-run potential output while creating additional upward movements in prices. OC. an increase in long-run potential output while actually reducing inflation OD. an increase in long-run potential output while creating additional upward movements in prices. Price Level, P…