Which of the following events would not involve a supply shock that would shift the aggregate supply curve?   (i) The Cosatu union disintegrates and the minimum wage is abolished. (ii) African bank plc’s bad debt creates a financial crisis and that leads to reduction in money supply. (iii) 2016 drought destroys half of the crops farmed. (iv) A tax on sugar is levied on companies that produce sugary beverages.

Q: As a response to the recent hike in inflation, the Bank of England has increased the repo…

A: Political considerations such as parliamentary cycles, opinions among the public, and special…

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A: In the economy, a long-run equilibrium is considered as the full-employment level where economy is…

Q: The following event has occurred:  The U.S. government has issued tax rebates to households.  This…

A:

Q: Which of the following scenarios would result in a decrease in Aggregate Demand? A) The congress…

A: Aggregate Demand is the sum of consumption expenditure, government spending, investment spending and…

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A: A stock market rise increases the overall confidence of the people, and the economy increases. There…

Q: QUESTION 10 A recession is a period during which aggregate output increases. True False

A: A recession refers to a period in which there is a consistent reduction in the aggregate output (Y)…

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A: The corona virus pandemic resulted in severe lock downs in the major as well as developing…

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A: To assess the dynamic changes in output and inflation after various macroeconomic events, a dynamic…

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A: Supply is the total quantity of products and services that the manufacturers produce to sell in the…

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A: Both aggregate demand and supply will cause the change in price level and real GDP in the short run.…

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A: Government spending is spending by the public sectors on goods and services such as education,…

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A: Aggregate demand refers to the total expenditure incurred by all the sectors of the economy in a…

Q: Assume that the stock market increases by 5% this month.  As a result   Question 6 options:   a)…

A: Stock market increases by 5% means that value of people's wealth rises.

Q: d) If the price level were to rise, the short- run aggregate supply curve in the next period will…

A: Aggregate supply is the total quantity of goods and services produced and available in the market.

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A: Here, the aggregate demand function of United States is given as: AD= 5000 + 0.7Yd

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A: Given diagram shows the condition of market Equilibrium.

Q: question 3 Consider the AS-AD and three-equations models of a closed economy discussed in the…

A: The expressions for Aggregate Demand and Aggregate Supply are: AS = Y = C + S, where C = Consumption…

Q: 1. Which of the following will shift the Aggregate Demand curve to the left? (Select All that Apply)

A: Aggregate demand is the total demand for final goods and services produced domestically.  Aggregate…

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A: Government efforts to boost productivity and efficiency in the economy are known as supply-side…

Q: may cause a shift of the long-run aggregate supply curve. A major earthquake O A price shock A…

A: The long-run aggregate supply curve denotes the economy's potential GDP.

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A: Aggregate demand is the sum of Consumption, Investment, government spending and net export.  At…

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A: In an economy, full capacity level of output is also known as potential Output level that can be…

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A: Due to pandemic all countries in the world affected economically as well as financially. Most of the…

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A: Aggregate demand is the total demand of goods and services demanded by people in the economy.…

Q: x Economists m

A: FALSEEvidence for demand-side explanation:Dramatic drop in spending: Consumer spending, business…

Q: For each of the following Aggregate Supply Models, show that Y = Y +a (P - P), stating clearly all…

A: The three models of aggregate supply are discussed as follows:

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A: This can be defined as a situation in an economy in which all the economic activity starts…

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A: The short-run aggregate supply (SRAS) curve represents the positive relationship between the price…

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A: Aggregate demand refers to the total value of goods and services that are demanded at a specific…

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A: When the actual degree of economic output is lower than the economy's potential output, it creates a…

Q: A vertical long-run aggregate supply curve shows that: (a) wages and prices are sticky. (b) changes…

A: the vertical AS curve means that the at each level of price we have the same level of output or…

Q: Consider an economy that is initially in long-run equilibrium. Assume that the long- run aggregate…

A:

Q: QUESTION 1 To determine the price level and aggregate output, the aggregate demand and aggregate…

A: "Aggregate demand is the demand of all finished goods and services produced in a year in the…

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A: If the oil price rises, then the cost of production will increase. Therefore, the supply of…

Q: The Recovery: Utilizing the Aggregate Demand/Aggregate Supply framework describe what has happened…

A: The AD/AS framework, also known as the Aggregate Demand/Aggregate Supply framework, is a…

Q: An increase in oil prices will shift the aggregate

A: Answer to the question is as follows :

Q: During the Great Recession, aggregate demand and long-run aggregate supply. a) decreased; decreased…

A: The correct option is a. During the great recession, aggregate demand decreased and long-run…