Which of the following are reasons the aggregate demand curve is downward sloping? Chelk all that apply. A higher price level decreases consumption through the substitution effect. A lower price level makes domestically produced goods less expensive than foreign goods. A higher price level decreases the real value of consumers' assets.

Which of the following are reasons the aggregate demand curve is downward sloping? Chelk all that apply. A higher price level decreases consumption through the substitution effect. A lower price level makes domestically produced goods less expensive than foreign goods. A higher price level decreases the real value of consumers' assets.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Which of the following statements will not parallel shift the aggregate supply curve? A. A reduction in business taxes. B. A reduction in the price of imported oil. C. An increase in labor productivity. D. A reduction in the general level of prices Please do fast ASAP fast
Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, a shift in neither curve, or a shift in both curves. If a shift is caused, indicate which curve shifts, and in which direction it shifts. What happens to aggregate output and the price level in each case? The price level changes. Consumer confidence increases. The supply of resources decreases.
An improvement in the level of technology in an economy will result in An upward movement along the aggregate supply curve An outward shift of the aggregate supply curve O A downward movement along the aggregate supply curve An inward shift of the aggregate supply curve
Which statements accurately explain the slope of the aggregate-demand curve? (choose all statements that are correct) O The Canadian exchange rate depreciates, so Americans import more wheat from Canada U with a sharp increase in the consumer price Index, there is a surge in demand for durable goods before their prices rise even furt O A rise in the rate of interest on Ahmed's saving account makes him feel wealthier so he invests in a new office computer O When the Euro appreciates against the Canadian dollar, Canadians shift some of their demand for services to imports from Europe O When interest rates fall, Jennifer decides to buy some new farm equipment O with prices down and wages fixed by contract, Rocky's gravel pit decides to lay off workers OJake feels wealthier because of the price drop, so he decides to buy a new pick-up truck
The aggregate demand curve shifts to the right when * Taxes are cut Government spending are reduced O Interest rate is increases Net exports are decreases A movement up a given aggregate demand curve is the resu
If households decide to save a larger portion of their income, what effect would this have on the output, employment, and price level in the short run? What about the long run?
Only a change in the price level can cause shifts in both the aggregate expenditure line and the aggregate demand curve. a. True b. False
Consider the graph below. Suppose that the economy is at point A Price Level LRAS SRAS A AD + Y (GDP) Currently, this economy Select in the long run, what will happen in this economy? The ISelect) curvets) will ISelect) because ISelect The price level will Select) GDP will (Select)
The following graph shows aggregate demand and short-run aggregate supply. Price level 1.) Use the line drawing tool to show the effect of an adjustment of workers and firms to a higher than expected price level. Properly label this line. SRAS, 2.) Use the point drawing tool to show the new equilibrium price level and real GDP. Label this point 'B'. Carefully follow the instructions above, and only draw the required objects. A ADO
Which of the following would be one of the factors that shift the aggregate demand curve? A change in: Domestic resource availability O Prices of imported resources O Property values O Productivity
Suppose an economy is initially in equilibrium at point m. The economy is likely to move to equilibrium at point k as a result of: Price Level LRAS SRAS2 (P) SRAS: k P2 P: m AD: Q: QN Real GDP (Q) Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a a decrease in consumer confidence. b an increase in personal income taxes. a decrease in the wage rate, d. an adverse (negative) supply shock.
Most 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