Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Question
Chapter 10, Problem 2CQ
(a)
To determine
Identify an increase in real wage rate impact on short-run
(b)
To determine
Identify the impact on the short-run aggregate supply due to a natural disaster that destroyed half of the orange trees.
(c)
To determine
Identify the impact on the short-run aggregate supply due to an increase in the expected rate of inflation in the future.
(d)
To determine
Identify the impact on the aggregate demand as an increase in the world price of oil, a major import.
(e)
To determine
Identify the impact on the short-run aggregate supply as huge rainfall during the growing season in an agricultural state.
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Economics: Private and Public Choice (MindTap Course List)
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- When does macroeconomic equilibrium occur? Multiple Choice When exports equal imports. When the aggregate supply equals the long-run Aggregate Supply When the aggregate demand equals the long-run Aggregate Supply. When the aggregate quantity demanded is equal to the aggregate quantity supplied.arrow_forwardFor each scenario, please decide whether there will be a short-run aggregate supply increase or short-run aggregate supply decrease or No Change( not all terms will be used) A) Changes in the healthcare market cause employers to pay significantly more for health insurance they provide employees.______ B) The price of lumber, a commodity, rises drastically due to the effect of heavy winter weather in the American Northwest, where much of the world's lumbe is grown._____ C) The production of a new type of blade for their combine harvesters, a tractor used to harvest crops, has allowed wheat farmers, like Herbert, to increase productivity by 40%. _______arrow_forwardUsing aggregate demand and aggregate supply, graph the effects on the price level and GDP of each of the following. Draw a large graph and label all axes, initial and final equilibrium points, direction of shift if any, all curves and lines, equilibrium values on the x- and y-axes. State the conclusion in words. a. A cut in income taxes b. An increase in military spending c. A drop in export demand by foreign purchasers d. An increase in imports e. A decline in business investment spendingarrow_forward
- Which of the following is likely to result from a rapid rise in aggregate demand? Select one: a. Static living standards b. Increased unemployment c. Rising prices d. Surplus on the balance of paymentsarrow_forwardWhich of the following would shift the long-run aggregate supply curve to the right?a. a decrease in the rate of inflationb. an increase in the growth rate of spendingc. a severe drought that decreases crop production and as a result raises pricesd. the invention of a new computer chip that makes assembly production twice as fastarrow_forwardWhich of the following shifts aggregate supply to the right? a. a decline in the price of imported natural resources b. a technological advance c. an older labor force that leaves jobs less frequently d. All of the above are correct.arrow_forward
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- QUESTION 2 Explain whether each of the following events will increase, decrease or have no effect on long-run aggregate supply. a) Malaysia experiences a wave of immigration. b) Intel invents a new and more powerful computer chip. c) Tenaga Nasional Berhad (TNB) invests in new electricity transmission technology. d) A severe flood damages factories in Pahang.arrow_forwardI want answers for a,b,carrow_forwardWhich of the following would shift the U.S. aggregate demand to the right? A world economic recession. Canada reduced the demand for U.S. products. European countries increased the demand for U.S. products. S. companies increased the imports of oil.arrow_forward
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