Q: Which one of the following variables is not held constant along a given aggregate demand curve?…
A: The AD-AS model has value in macroeconomics since it represents the link involving aggregate demand…
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A: In an economy, unplanned Inventory refers to the amount of goods and services that are not planned…
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A: The long run aggregate supply curve shifts rightwards when there is an increase in the quantity of…
Q: Which of the following would cause the aggregate supply curve to increase... O Throughout the…
A: Aggregate supply refers to the total amount of goods and services supplied in the economy at given…
Q: PRICE LEVEL P₂ P₁ 4 B Y, Y₂ QUANTITY OF OUTPUT SRAS AD The shift of the short-run aggregate-supply…
A: In macroeconomics, the AS curve is a key idea. An essential instrument for analyzing an economy's…
Q: An increase in aggregate demand will cause the unemployment rate to _______, the GDP growth rate to…
A: Aggregate demand refers to the total demand for goods and services in the economy by all the…
Q: f the price level and the money wage rate rise by the same percentage, what happens to the quantity…
A: When there is an increase in the price level and the money wage rate to be unchanged, the real wage…
Q: Between a trough and a peak, the economy goes through a(n) Ohyperinflation. bust. recession.…
A: DISCLAIMER “Since you have asked multiple questions, we will answer the first question for you. If…
Q: Assume an economy operates in the intermediaterange of its aggregate supply curve. State…
A: The aggregate supply curve shows the positive relationship between price and the total quantity of…
Q: ow is it possible for the economy to have an inflationary gap? a. GDP is falling at full…
A: Answer to the question is as follows:
Q: In the aftermath of the Great Recession, the Beveridge cuve in the US... A. ...has shifted to the…
A: The Beveridge curve is a graphical representation of the relationship between the unemployment rate…
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Q: Bob is laid off his job because of a recession. A. seasonal B. frictional O C. structural O D.…
A: Unemployment is a term referring to individuals who are employable and actively seeking a job but…
Q: 2. Show a AD-AS graph inflation in the short run and the shift in the SAS necessary to eliminate it.
A: Let us take cost-push inflation: A rise in the cost of inputs/raw materials used to produce goods…
Q: Aggregate price level P₂ P₁ Po Select one: LRAS a. P₁-Po. b. P₂ - P. C. P₂ - Po. d. Y₁ - Yp Yp Y₁…
A: Aggregate demand is the sum of consumption, investment, government spending and net export. This…
Q: . When the economy is in a recession:a. tax eceipts decrease, transfer payments increase, and al GDP…
A: The recession refers to deficient demand in the economy, or demand that is not enough in the economy…
Q: INFLATION RATE LRAS AD SRAS REAL GOP GROWTH RATE Suppose a change in fiscal policy causes the AD…
A: This can be defined as a concept that shows the total demand for the products and services in a…
Q: An increase in long-run aggregate supply can be expected to the natural rate of unemployment, have…
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Q: What impact does full employment have on the economy?
A: We can say that When all the labor resources in an economy are utilized in an optimum manner or in…
Q: Price level P OC. d to c. OD. fto e. P P₁ Long-run AS 10 16 Y₁ Short-run AS, Short-run AS, Y₁ (A) AD…
A: The John Maynard Keynes model emphasizes the importance of government in guiding economic…
Q: Assume an economy operates in the intermediate range of its aggregate supply curve. For each of the…
A: The economies around the world operate with the motive of increasing the economic growth, and the…
Q: the government wants to reduce unemployment, government spending should be--- and/or taxes…
A: *Answer: increased; decreased The increase government spending increases jobs and decreases in…
Q: Which of the following shifts aggregate demand to the left? Select one: O a. an increase in imports…
A: The aggregate demand is the collective demand, i.e. the total demand of goods and services in the…
Q: In the short run, the aggregate quantity supplied of real GDP OA. decreases if the price level…
A: The total amount of an economy's output after accounting for price fluctuations is its real GDP. By…
Q: Assume the economy has horizontal AS curve. A rightward shift of the AD curve will result in OA. an…
A: Aggregate demand (AD) is the total amount of goods and services that all sectors of the economy are…
Q: KE The economy's AS curve will shift downward in the short run if there is: A. an improvement in…
A: Aggregate demand is the sum of consumption, investment, government spending and net export. At…
Q: A recessionary gap can be closed by wages that shift the A. falling; LRAS curve to the right B.…
A: A situation whereby the real GDP of a country is lesser than the GDP level at full employment is…
Q: Real Expenditures (Billions) 17,500 13,000 Potential GOP AE 4 12.000 14.000 16,000 16.000 20.000…
A: The aggregate spending schedule shows how much a country's cumulative budgeted expenditures are at…
Q: Consumer Spending increased by 5% last month, Based on this data, which of the following will likely…
A: Consumer spending is a component of aggregate demand, meaning increase in consumption spending leads…
Q: Why does an inflationary output gap lead to increased price levels? O a. Demand is too high O b.…
A: An inflationary gap is defined as the amount by which the actual GDP of the economy exceeds the…
Q: 7. Draw the long-run aggregate supply curve when potential GDP is $17.5 trillion. Label it. As we…
A: Potential GDP is a theoretical measure of an economy's maximum production capacity, assuming full…
Q: The lowest part of a recession is referred to as its. O a. Peak O b. Depression O. Boom Od. Trough
A: Business cycle can be seen in the following diagram
Q: Price Level AD Yu YY Rea National Income 4. Referring to the above diagram, which of the following…
A: From the diagram it can be seen that AD and AS are intersecting each other where the AS is seen to…
Q: Which of the following events increases aggregate supply? A. A decrease in potential GDP B. A rise…
A: There are multiple factors which could increase the aggregate supply in the short run i.e.…
Q: 3. Price level Y, SAS1 SASO Real output Refer to the graph shown. A movement from A to C is most…
A: Aggregate demand refers to the total quantity of goods and services that all sectors of an economy,…
Q: Which of the following statements is correct? The aggregate price level is a subject of concem in…
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Q: An increase in taxes when the economy is above full employment OA. increases; falls B. increases;…
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Q: Explain why the NBER reported that the 2008 recession began before real GDP had fallen for two…
A: To determine the real GDP the NBER committee calculated the the real GDP and the real GDI (gross…
Q: GDP totaled 12.8 trillion. here was a -2.4 % change from 2008's GDP of 13.2 trillion. The…
A: With GDP in 2009 is -2.4 % less than GDP in 2008, the economy is experiencing contraction in…
Q: Which of the following could potentially cause a recession? O AD increases, and wages are sticky. AD…
A: Recession is a period when real GDP is decreasing.
Q: Typically, when will the National Bureau of Economic Research (NBER) announce that the economy is…
A: Recession is a situation in the economy when there is a general decline in economic activity. For…
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Q: 8. In the economy, we found a recessionary gap of 50, relative to potential output of 4,800. Suppose…
A:
Q: The French economist Jean-Baptiste Say trans- formed the equality of total output and total…
A: OPTION C - Supply creates its own demand This is called the Say's Law. It says that if a good is…
When the economy goes into a recession. real GOP ---- and a. rises, rises b. rises, falls c falls. rises d. falls, falls |
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- Price level Figure 10-7 LRAS SRAS₂ SRASO J H SRAS ADO Real GDP Refer to Figure 10-7. Starting from long-run equilibrium at point F, at which of the following points would short-run equilibrium occur following a drought in the Midwestern states? O al O b. F OC.G O d.HQuestion 1 The economy Is at full emplayment when A there are more unemployedbtworkers than vacancCIe Ball unemployment Is cyClical C there are no unemplayment wUorkers Dallemploymentis frietional and lor structabral Question 2 Structioral Unemployment Isassociated with A short -term unemployment B general down turns in the economY C the changing of jobs ina dynamic economy D the changes intechnology that change required Question 3 Real GDP Is adjusted for inflation ATrue B False Queston 4 Including discouraged workers in the calculation unemployment rate would JA increase the reported rate B lower the reported rate not change the reported rate D chunge the reported rate butin an unpredictatPRICE LEVEL a a" a" LRAS Y, Y₂ QUANTITY OF OUTPUT 8 a. rising price level and a falling level of output, as the economy moves to point A. b. falling price level and a falling level of output, as the economy moves to point C. c. falling price level and a rising level of output, as the economy moves to point A O d. rising price level and a rising level of output, as the economy moves to point C. SRAS, SRAS Refer to Figure 34-3. Starting from point B and assuming that aggregate demand is held constant, in the long run the economy is likely to experience a AD
- If aggregate demand shifts left, then in the short run a. the price level and real GDP both rise. b. the price and real GDP both fall. c. the price level falls and real GDP rises. d. the price level rises and real GDP falls.The graph below shows an economy operating at equilibrium in both the short run and long run at its full employment level of output. a. Show what happens when this economy moves from its full-employment equilibrium into a period of stagflation. Use the graph to draw either a new AD curve or new AS curve to demonstrate stagflation in this economy Instructions: Use the tool provided "New Curve to plot the appropriate line. After placing the curve, click on "Select and choose whether to label the curve "AD" or "AS" from the dropdown menu. Aggregate Demand and Aggregate Supply Price Level LRAS Tools New Curve 0Most economists reason that an economy adjusts to inflationary and recessionary gaps slowly because are fixed in the short run. Consumer preferences Тахes Wages Supplies of most of the inputs
- When the economy goes into a recession, realGDP _________ and unemployment _________.a. rises; risesb. rises; fallsc. falls; risesd. falls; fallsI is economy IS In a recessIonary yap wrieı ure aciuai GUP IS Delow pouu DIIIIUI. b. Explain why wages rise when output is greater than potential but fall when output is less than potential. When there is a recessionary gap, if there is no intervention in the economy the level of actual unemployment will rise above the natural level of unemployment in the economy. Thus, there will be more competition among workers to find a job, which will put downward pressure on the level of wages. 1- c. For each situation, fill in the table by identifying whether the AS curve shifts up, down, or is stationary. Real GDP Rate of Shift of 760 770 780 7E0o a10 s20 B30o 840 B50 Situation (billions Wage of dollars) Change AS Curve A 760 3.0 % shifts down B 780 1.5 % shifts down 800 0.0 % is stationary D 820 1.0 % shifts up 845 2.0 % shifts up Level of GDP d. Use the multipoint drawing tool to plot and label the Phillips curve on a scale diagram for this economy. Use all and only the points provided in the…if european economies experience a period of sustained recession and the US does not, what will happen in the US a. an increase in aggregate deman b. increase in aggregate supply c. decrease in aggregate demand d. decrease in aggregate supply
- 12. If _____ is rising, it likely means that the economy is shrinking. A. consumer spending B. nominal GDP C. the Consumer Price Index D. the unemployment rateIf the price level and the money wage rate rise by the same percentage, what happens to the quantity of real GDP supplied? How does the economy move? If the price level and the money wage rate rise by the same percentage, the quantity of real GDP supplied _______ and there is a movement up along the _______. A. does not change; potential GDP line B. increases; aggregate supply curve C. decreases; potential GDP line D. does not change; aggregate supply curve Thanks!Stagflation is the combination of--------. Select one: a. a recessionary gap and a falling price level b. no recessionary or expansionary gap, but a rising price level c. an expansionary gap and a falling price level d. a recessionary gap and a rising price level
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