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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The graph shows an economy at full employment. Show the effect of an increase in the quantity of money. Draw either a new aggregate demand curve labeled AD, or a new aggregate supply curve labeled AS₁. Draw a point at the new macroeconomic equilibrium. To restore full employment, the money wage rate will O A. rise and aggregate supply decreases; rises OB. riseand aggregate demand decreases; falls OC. fall and aggregate demand decreases; falls OD. fall and aggregate supply decreases; rises The price level 140- 130- 120- 110- 100- 90- 80- Price level (GDP price index, 2009=100) Potential GDP 110 ADO 500 ASO 600 700 800 Real GDP (trillions of 2009 dollars) >>> Draw only the objects specified in the question. 900 1000 1100
> O Question 8 Which of the following changes would NOT shift the short-run aggregate supply curve? A an occurance of natural disaster. B C D a rise in the rental cost. a decrease in the labour cost. a fall in the price level. Question 9 O Et H P W
In 2013, Prussia's aggregate demand curve was determined by the equation M + 1-4% A change in aggregate demand means that in 2014, Prussia's aggregate demand curve was determined by the equation Using this information, draw Prussia's old and new dynamic aggregate demand curves on the graph Which of the factors could have resulted in the change irn aggregate demand seen between 2013 and 2014? 13 AD 2013 an improvement in technology O an increase in imports O higher consumer confidence O a decrease in oil prices 12 AD 2014 10 8 5 4 3 2 4 -3 2 1 0 1 2 3 4 5 6 78 9 10 Real GDP growth rate
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In the above figure; when the economy is in a longr run equabrium, the price level will be 90 . 110. 120, 100
The economy is in long run equilibrium. Congress’s passage of new laws significantly increasing the regulation of business. It is assumed that everything else stays constant. What do we expect in aggregate demand, short run aggregate supply aggregate supply in short run? And what happens in long run, and long run equilibrium price level and output? Explicitly state what happens to equilibrium price level and output in both short run and long run and how economy corrects from short run to long run.
2. The slope and position of the long-run aggregate supply curve Which of the following factors will influence the position of the long-run aggregate supply curve? Check all that apply. O The amount of available natural resources O The price level O The inflation rate O The quantity of physical capital Suppose the economy produces real GDP of $70 billion when unemployment is at its natural rate. On the following graph, use the purple line (diamond symbol) to plot the economy's long-run aggregate supply (LRAS) curve. 132 128 LRAS 124 120 116 112 108 104 100 50 60 REAL GDP (Billions of dollars) 10 20 30 40 70 80 PRICE LEVEL
The economic shutdown after the Covid-19, there was a decrease in Aggregate Demand (AD) and a decrease in Aggregate Supply (AS). What was the short-run impact on real GDP? That is, what happened to the short-run equilibrium real GDP (Y)? Based on real GDP, what happened to unemployment? In the long-run equilibrium, what happens to the long-run price level?
Draw a short-run aggregate supply curve. Label it. As we move up along the short-run aggregate supply curve, O A. potential GDP increases OB. the money wage rate, the prices of other resources, and potential GDP remain constant OC. the money wage rate and the prices of other resources change by the same percentage OD. the real wage rate, the prices of other resources, and potential GDP remain constant 150 140- 130- 120- 110- 100- Click the graph, choose a tool in the palette and follow the instructions to create your graph. 90- Price level (GDP deflator, 2009=100) 12.0 12.5 13.0 13.5 14.0 14.5 Real GDP (trillions of 2009 dollars) >>> Draw only the objects specified in the question. WX 11.5 trend rise in velocity. Evi
Price Level O B Price Level Quantity of Output Quantity of Output Refer to the Figure 14-1. In the short run, what would result from a favourable shift in aggregate supply? O a. It would move the economy from A to B. O b. It would move the economy from B to C. Oc. It would move the economy from C to D. O d. It would move the economy from D to A.
The following graph shows the economy in long-run equilibrium at the expected price level of 120 and the natural level of output of $600 billion. Suppose firms become pessimistic about future business conditions and cut back on investment spending. Shift the short-run aggregate supply (AS) curve or the aggregate demand (AD) curve to show the short-run impact of the business pessimism. 240 AS AD AS O PRICE LEVEL 200 160 120 80 40 AD
The economy is depicted in the graph to the right. a. Suppose, there are new discoveries of key raw materials. Which of the following best describes the result of this event? O A. The short-run aggregate supply curve shifts out while the long-run aggregate supply curve shifts in. OB. Both the short-run and long-run aggregate supply curves shift outward. OC. The short-run aggregate supply curve shifts inward while the long-run aggregate supply curve shifts outward. OD. Both the short and long-run aggregate supply curves shift inward. b. Complete the diagram. 1.) Using the line drawing tool, draw the new long-run aggregate supply curve representing this shock. Label it as LRAS,. 2.) Using the 3-point curved line drawing tool, draw the new SRAS representing this shock. Label it 'SRAS,'. Carefully follow the instructions above, and only draw the required objects. to search O