Which of the following would cause the aggregate price level to fall and the equilibrium level of real GDP to increase in the short run? Question 12 options: a) the short-run aggregate supply curve shifts left b) aggregate demand shifts right c) aggregate demand shifts left d) the short-run aggregate supply curve shifts right

Which of the following would cause the aggregate price level to fall and the equilibrium level of real GDP to increase in the short run? Question 12 options: a) the short-run aggregate supply curve shifts left b) aggregate demand shifts right c) aggregate demand shifts left d) the short-run aggregate supply curve shifts right

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter5: Introduction To Macroeconomics

Section: Chapter Questions

Problem 3.3P

See similar textbooks

Similar questions

Multiple choice Question one3 Carefully explain what is happening in the following market. Indicate the impact , if any on demand, supply,price and quantity. Chose from the following what will happen to each ; increase towards equilibrium, no impact,excess supply, change in price uncertain, decrease equilibrium quantity, increase equilibrium price, change in quantity uncertain, decrease towards equilibrium, decrease equilibrium price, shift outward to right, shift inwards to left , excess demand , increase towards equilibrium. 1a) In Academics year 2020/21 , the university of the west indies mandated that all students must take principles and economics as a core requirement for their major. Concurrently , the university bookshop made their order for the principle and economics text books based on the number of registered students in the last academic year (2019/2020).1b) The price of input for the production of BrandX handbags have increased .Concurrently, taste and preferences has…
Suppose our economy is in macroeconomic equilibrium (also called "general equilibrium") with an upward-sloping aggregate supply curve and a downward-sloping aggregate demand curve. An increase in aggregate demand will: Question 5 options: a) Increase aggregate supply. b) Decrease the price level. c) Causes the aggregate supply to shift to the right. d) Increase real GDP. e) Reduce the number of discouraged workers in the unemployment rate.
Answer the following questions on the basis of the following three sets of data for the country of North Vaudeville: (A) (B) (C) Price Price Price Level Real GDP Level Real GDP Level Real GDP 110 225 110 275 100 200 100 225 100 250 100 225 95 225 95 225 100 250 90 225 90 200 100 275 a. Which set of data illustrates aggregate supply in the immediate short run in North Vaudeville? (Click to select) ▼ The short run? (Click to select) V The long run? (Click to select) V b. Assuming no change in hours of work, if real output per hour of work increases by 5 percent, what will be the new levels of real GDP in the right column of B? Instructions: Enter your answers rounded to 1 decimal place. At a price level of 110: At a price level of 100: At a price level of 95: At a price level of 90: Does the new data reflect an increase in aggregate supply or does it indicate a decrease in aggregate supply? (Click to select)
Your company sells wristwatches in three separate markets: China, Japan and Korea. The demand curves are 9c = 50 9j = 75 - - qk 100 4 2 Pc P₁ · Pk. a) Calculate and plot the inverse demand curve for each market. b) Calculate your aggregate demand curve. c) Calculate and plot your inverse aggregate demand curve.
Assume that, in the market for iron, all of the supply comes from iron mining firms, which own mines that contain limited quantities of iron. Most of the demand comes from steel manufacturers. Suppose that a new economic report predicts that world economic growth will greatly exceed previous projections, causing the price of iron to double in a year. What effect does this have upon the current market for iron? Select 2 correct answer(s) Question options: Supply shifts left. Supply shifts right. Demand shifts left. Demand shifts right. SELECT 2 ANSWERS PLEASE!
Which of the following will increase the Aggregate Demand curve or shift it to the right? The government passes a big infrastructure improvement spending bill O Interest rates rise The raises personal income taxes The U.S. population experiences a significant contraction in population, decreasing the number of people working and consuming. Question 2 Which of the following will decrease the aggregate supply curve or shift it to the left? New international sanctions on Iranian oil raise the price of oil globally and oil is an input in production of many goods and services A 10 percent across the board reduction in personal income tax rates Business taxes fall A new networking technology increases productivity all over the economy
Show the effect this shock has on the market for almonds by shifting the demand curve, supply curve, or both. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per ton) 40 32 32 Supply Demand 24 24 16 8 0 8 16 24 Demand QUANTITY (Thousands of tons) 32 40 Supply One of the growers is pleased with the price increase caused by the pests because she believes it will lead to increased revenue. Using elasticities, you will be able to determine whether this price change will lead to a rise or fall in total revenue in this market. Using the midpoint method, the price elasticity of demand for almonds between the price levels of $20 and $28 per ton is between these two points, demand is . Thus, you can conclude that the grower's claim is due to the pestilence. meaning that because total revenue will Confirm your previous…
Answer the following questions on the basis of the following three sets of data for the country of North Vaudeville: (А) (В) (C) Price Price Price Level Real GDP Level Real GDP Level Real GDP 110 285 100 210 110 235 100 260 100 235 100 235 95 235 100 260 95 235 90 210 100 285 90 235 a. Which set of data illustrates aggregate supply in the immediate short run in North Vaudeville? |(Click to select) V The short run? (Click to select) ♥ The long run? (Click to select) V b. Assuming no change in hours of work, if real output per hour of work decreases by 10 percent, what will be the new levels of real GDP in the right column of A? Instructions: Enter your answers rounded to 1 decimal place. At a price level of 110: At a price level of 100: At a price level of 95: At a price level of 90: Does the new data reflect an increase in aggregate supply or does it indicate a decrease in aggregate supply? (Click to select)
1)Potential output is the same as long-run aggregate supply. Select one: True False 2)An increase in the price level will cause a decrease in the aggregate amount of output supplied. Select one: True False
Question 14 Use the following chart to answer questions 14–18. Suppose that in normal years demand is represented by Case 2, and supply is represented by Case B. In a normal year, what is the price of wapanzo beans? Question 14 options: a) $3 per pound b) $4 per pound c) $2 per pound d) $1 per pound Question 15 Suppose that in normal years demand is represented by Case 2, and supply is represented by Case B. In a normal year, what is the equilibrium quantity of wapanzo beans? Question 15 options: a) 8 million pounds b) 4 million pounds c) 6 million pounds d) 2 million pounds Question 16 Suppose that in normal years demand is…
Consider the market supply of peanut butter. Complete the following table by indicating whether an event will cause a movement along the supply curve for peanut butter or a shift of the supply curve for peanut butter, holding all else constant.
Explain the concept of excess demand in macroeconomics. Also, explain the role of open market operation in correcting it. (Kinly explain with diagram)