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
(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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(Figure: Good Y and Good X) Suppose the budget constraint shifted from constraint 2 to constraint 1. What could have caused this change?
Quantity of
good Y
18
16
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Budget constraint 2
12-
10
8
Budget constraint 1
6
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2
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2 4 6 8 10 12 14 16 18 20 Quantity of good X
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a decrease in income
an decrease in the price of good X and no change in the price of Y
a decrease in income and an increase in the price of good X relative to that of good Y
an increase in income
a decrease in the price of good X relative to that of good Y
Chapter 10 Solutions
Economics: Private and Public Choice (MindTap Course List)
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