Which of the following would be most likely to shift the long-run aggregate supply curve (LRAS) to the right?O favorable weather conditions that increased the size of this year's grain harvestan increase in resource prices relative to product pricesan increase in labor productivity as the result of improved computer technology and expansion of the Internetan increase in the cost of security as the result of terrorist activities

Answer is 'an increase in labor productivity as the result of improved computer technology and…

Answered: Which of the following would be most…

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

Assume an economy operates in the Keynesian (horizontal) range of its aggregate supply curve. For each of the following changes in conditions, state the direction of the effect on Aggregate demand, aggregate supply, price level and real GDP 1. A decrease in government expenditure in infrastructure 2. A severe recession occurs in a country, which has been a major importer 3. The federal government reduces business taxes 4.The central bank increases the cash interest rate.
(Figure: Determining SRAS Shifts) If there are advances in technology, the short-run aggregate supply curve will shift from SRAS to and the price level will shift to Aggregate Price Level (P) P₂ Po Q SRAS2; P1 SRAS1; P1 SRAS2; P2 SRAS1; PO SRAS2 Q₂ Qo Q₁ Aggregate Output (Q) SRASO AD SRAS₁
The upward slope of the short-run aggregate supply curve is based on the assumption that: 1) Nominal wages and other resource costs do not respond to price level changes 2) Nominal wages and other resource costs do respond to price level changes 3) Nominal wages are greater than real wages 4) Nominal wages are less than real wages A fall in prices of imported resources will cause aggregate: 1) Supply to increase 2) Demand to increase 3) Supply to decrease 4) Demand to decrease
An increase in resources available would decrease potential GDP and the long-run aggregate supply curve. True or False
Austria is one of the largest exporters of oil. At the end of 2019, the global price of oil fell substantially. For this question, treat oil as a final good, not an input into production. Begin at long-run equilibrium. this is all one question please answer everything! Now assume that the government did not intervene and instead allowed the economy to self-correct. As a result of the self-correction, AD ( increased,decreased,remained the same,changed ambiguously) SRAS ( increased,decreased,remained the same,changed ambiguously) LRAS ( increased,decreased,remained the same,changed ambiguously) GDP ( increased,decreased,remained the same,changed ambiguously)relative to before the crisis, unemployment relative to before the crisis, and the price level ( increased,decreased,remained the same,changed ambiguously)relative to before the crisis.( increased,decreased,remained the same,changed ambiguously)
This graph shows an increase in aggregate supply in a hypothetical economy where the currency is the dollar. Specifically, the short-run aggregate supply curve (SRAS) shifts to the right from SRAS1 to SRAS2, causing the quantity of output supplied at a price level of 125 to rise from $250 billion to $350 billion.
Which of the following will not cause Australia's Aggregate Demand curve to shift to the right? Consumers increase the proportion of their spending that is spent on imports Tax rates are decreased There is an increase in government spending The Australian dollar depreciates
Which of the following shifts the aggregate supply and the potential GDP curve to the left? a decrease in immigration a decrease in the price level a decrease in the money supply a decrease in the expected price level
Which of the following could cause the US economy to go into a recession? a) a declining stock market and an increase in unemployment b) an increase in pessimism by consumers and businesses c) All of the choices are correct d) a decrease in Aggregate Demand e) None of the choices is correct
Which of the following would shift the U.S. aggregate demand to the right? European countries increased demand for US products A world economic recession US companies increased imports of oil Canada reduced the demand for US products
Refer to Table 8.9. The equilibrium level of aggregate output is Select one:
A sudden increase in consumer spending will shift the aggregate demand curve to the right and lower the price level/inflation and increase the level of GDP output. True /False

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS