When there ae no unplanned inventory changes, the economy in a short run equilibrium and in a long nun equilibrium O a may or may not be, is O b. is, is not Oc. is; may or may not be O d. is; is also Starting from a long run equilibrium, if a sudden decrease in household weaith causes a shift in AD, the economy will experience: O a. the same level of prices and lower real GDP in the short run. O b. higher prices and lowerreal GDP in the short nun. O e. lower prices and lower real GDP in the short run. Od. lower prices and the same level of GDP in the short run. Which of the following is NOT one af the reasons for the slow adjustment of input prices? O a. Menu costs Ob. Increased productivity O c. Inventories Od. Long-term contracts

When there ae no unplanned inventory changes, the economy in a short run equilibrium and in a long nun equilibrium O a may or may not be, is O b. is, is not Oc. is; may or may not be O d. is; is also Starting from a long run equilibrium, if a sudden decrease in household weaith causes a shift in AD, the economy will experience: O a. the same level of prices and lower real GDP in the short run. O b. higher prices and lowerreal GDP in the short nun. O e. lower prices and lower real GDP in the short run. Od. lower prices and the same level of GDP in the short run. Which of the following is NOT one af the reasons for the slow adjustment of input prices? O a. Menu costs Ob. Increased productivity O c. Inventories Od. Long-term contracts

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which event does not affect the long-run level of real GDP ? O The available knowledge and skills in the economy increases. O A severe hurricane destroyed factories. O The country experiences widesprcad technological advancements. O Firms and workers expect the price level to rise.
PAE Expenditure Line PAE=500+ 9Y 6000 5900 5500 5450 5000 500 45 5000 5500 6000 Y Refer to the figure above. Based on the Keynesian cross diagram, short-run equilibrium output equals: Select one: Oa. 5450 b. 5900 C. 5500 d. 5000
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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.
"Fracking" is a relatively new technology that allows drillers to extract significantly larger quantities of natural gas from existing deposits than was previously possible. How is this discovery likely to affect the economy? (Hint: Think about whether this will have a short-run or long-run effect.) This discovery will likely: O increase both SRAS and LRAS, leading to a long-term increase in output and decrease in prices. O increase AD but decrease both SRAS and LRAS, leading to an uncertain change in long- term output and a decrease in prices. decrease both SRAS and LRAS, leading to a long-term decrease in output and increase in prices. O increase AD, SRAS, and LRAS, leading to a long-term increase in output and an uncertain change in prices.
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D Question 8 When the government lowers income taxes, consumption is O stimulated; rightward shift of O stimulated; movement down along O reduced; leftward shift of O reduced; movement up along Question 9 An increase in the price of a nonlabor input such as oil will cause a movement up the SRAS curve. a leftward shift in the SRAS curve. a rightward shift in the SRAS curve. no change regarding the SRAS curve. , causing a the AD curve.
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If planned aggregate expenditure in an economy can be written as: PAE = 10,000 + .6 Y, what is the short-run equilibrium level of output in this economy? %3D Select one: O a. 10,000 b. 75,000 c. 16,666.67 O d. 25,000
Use the following figure to answer the next question. Price Level P MHURBODDES 0 E 40 18 X DOBO GODD a 4 9 OA) low unemployment OB) expansion OC) hyperinflation OD) stagflation 9 AS₁ Q₁ Q₂ Q3 Real Domestic Output AS₂ AD₁ AD₂ In the figure, AD2 and AS2 represent the original aggregate supply and demand curves. If Q3 is full-employment output, then AD2 and AS₁ best represent a period of
In order to shift the vertical aggregate supply curve to the left, which of the following would have to occur? O expansion of potential GDP O increase in productivity flexible wage and price adjustments O breakdown of key market institutions
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