Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 20.A, Problem 4SQ
To determine
The SRAS when the nominal wages and salaries are fixed and there is a change in
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Which of the following would cause the aggregate supply curve to increase...
A) Energy prices such as gas and electricity have increased rapidly throughout the country.
B) The government has reduced its spending by more than 10% over the last 2 years
C) Consumers are more confident and spending more than before.
D) Throughout the economy, workers are using better equipment and output per hour is rising.
Which of the following would be most likely to produce a rightward shift in the long run aggregate supply curve (LAS)?
a) a decrease in the quantity of oil
b) an increase in the quantity and skills of the labour force
c) an increase in input prices
d) a decrease in the productivity of land
Which of these does NOT cause shifts in short run aggregate supply (SRAS)?
Nominal wages
Firms' stock prices
Commodity prices
Productivity (output per worker)
Chapter 20 Solutions
Economics For Today
Ch. 20.7 - Prob. 1YTECh. 20.A - Prob. 1SQPCh. 20.A - Prob. 2SQPCh. 20.A - Prob. 3SQPCh. 20.A - Prob. 4SQPCh. 20.A - Prob. 5SQPCh. 20.A - Prob. 6SQPCh. 20.A - Prob. 1SQCh. 20.A - Prob. 2SQCh. 20.A - Prob. 3SQ
Ch. 20.A - Prob. 4SQCh. 20.A - Prob. 5SQCh. 20.A - Prob. 6SQCh. 20.A - Prob. 7SQCh. 20.A - Prob. 8SQCh. 20.A - Prob. 9SQCh. 20.A - Prob. 10SQCh. 20.A - Prob. 11SQCh. 20.A - Prob. 12SQCh. 20.A - Prob. 13SQCh. 20.A - Prob. 14SQCh. 20.A - Prob. 15SQCh. 20.A - Prob. 16SQCh. 20.A - Prob. 17SQCh. 20.A - Prob. 18SQCh. 20.A - Prob. 19SQCh. 20.A - Prob. 20SQCh. 20 - Prob. 1SQPCh. 20 - Prob. 2SQPCh. 20 - Prob. 3SQPCh. 20 - Prob. 4SQPCh. 20 - Prob. 5SQPCh. 20 - Prob. 6SQPCh. 20 - Prob. 7SQPCh. 20 - Prob. 8SQPCh. 20 - Prob. 9SQPCh. 20 - Prob. 10SQPCh. 20 - Prob. 11SQPCh. 20 - Prob. 1SQCh. 20 - Prob. 2SQCh. 20 - Prob. 3SQCh. 20 - Prob. 4SQCh. 20 - Prob. 5SQCh. 20 - Prob. 6SQCh. 20 - Prob. 7SQCh. 20 - Prob. 8SQCh. 20 - Prob. 9SQCh. 20 - Prob. 10SQCh. 20 - Prob. 11SQCh. 20 - Prob. 12SQCh. 20 - Prob. 13SQCh. 20 - Prob. 14SQCh. 20 - Prob. 15SQCh. 20 - Prob. 16SQCh. 20 - Prob. 17SQCh. 20 - Prob. 18SQCh. 20 - Prob. 19SQCh. 20 - Prob. 20SQ
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Similar questions
- Which of the following are assumed to remain unchanged along a given short-run aggregate supply curve? Check all that apply. A. The position of the aggregate demand curve B. The price level C. Real GDP D. Input pricesarrow_forwardThe long-run aggregate supply curve is... A) Upward sloping at the potential GDP level B) Vertical at the potential GDP level C) Above the short-run aggregate supply curve D) Downward sloping like the aggregate demand curvearrow_forwardWhich of the following would not cause a shift in the long-run aggregate supply curve? a) An increase in the available capital b) An increase in the available technology c) An increase in price expectations d) An increase in the available labour e) All the abovearrow_forward
- Which statement about short-run aggregate supply is the most accurate? It is not affected in any manner by the price level. It reflects how much real GDP suppliers are willing and able to produce at different price levels. It shifts only when the employment levels increase. It is set at the natural rate of unemployment.arrow_forwardThe following graph represents the short-run aggregate supply curve (SRAS) based on an expected price level of 120. The economy's full- employment output level is $9 trillion. Major unions across the country have recently negotiated three-year wage contracts with employers. The wage contracts are based on an expected price level of 120, but the actual price level turns out to be 160. Show the short-run effect of the unexpectedly high price level by dragging the curve or moving the point to the appropriate position. PRICE LEVEL (CPI) 240 200 160 40 0 0 3 SRAS[120] 6 9 12 REAL GDP (Trillions of dollars) 15 18 SRAS[120] 0 (?) Interpret the change you drew on the previous graph by filling in the blanks in the following paragraph:arrow_forwardThe following graph represents the short-run aggregate supply curve (SRAS) based on an expected price level of 180. The economy's full- employment output level is $9 trillion. Major unions across the country have recently negotiated three-year wage contracts with employers. The wage contracts are based on an expected price level of 180, but the actual price level turns out to be 240. Show the short-run effect of the unexpectedly high price level by dragging the curve or moving the point to the appropriate position. PRICE LEVEL (CPI) 380 300 240 180 80 0 3 SRAS[180] 9 12 REAL GDP (Trillions of dollars) 15 18 0 SRAS[180] 0arrow_forward
- The following graph represents the aggregate supply (AS) curve based on an expected price level of 120. The economy's potential GDP level is $9 trillion. Major unions across the country have recently negotiated three-year wage contracts with employers. The wage contracts are based on an expected price level of 120, but the actual price level turns out to be 80. Show the short-run effect of the unexpectedly low price level by dragging the curve or moving the point to the appropriate position. Note: To move the curve, select and drag any part of the curve except the point. To move the point, select and drag the point along the curve. If you want to move both, first move the curve, and then move the point. The curve and point will snap into position, so if you try to move one of them and it snaps back to its original position, just try again and drag it a little farther. PRICE LEVEL 240 200 160 8 120 PRICE LEVEL 80 40 0 240 200 0 Interpret the change you drew on the previous graph by…arrow_forwardAssume that the long-run aggregate supply curve is vertical at Y= 3,000 while the short-run aggregate supply curve is horizontal at P = 1.0. The aggregate demand curve is Y = 2(MIP) and M = 1,500. ▪a. Is the economy is initially in long-run equilibrium?what are the values of P and Y? ▪b. If M increases to 2,000, what are the new short-run values of P and Y? ▪c. Once the economy adjusts to long-run equilibrium at M = 2,000, what are P and Y?arrow_forwardAssuming a stable short-run supply curve, what will happen if there is a shift in aggregate demand? a) Profits and output increase in the long-run. b) Unemployment decreases in the long-run. c) Profits and output decrease in the short-run. d) Unemployment increases in the short-run. e) Unemployment and prices move in opposite directions in the short-run.arrow_forward
- Please no hand written solutionarrow_forwardConsider the short run aggregate supply (SRAS) and the long run aggregate supply (LRAS) curves in the topic of economic fluctuations studied from the text. Which of the following is true? The SRAS curve has flexible output and the LRAS curve has constant prices The SRAS curve has constant prices and the LRAS curve has constant output The SRAS curve has constant output and the LRAS curve has constant prices The SRAS curve has flexible prices and the LRAS curve has constant outputarrow_forwardWhich of the following factors affect the Long-Run Aggregate Supply curve? Choose all that apply. Total Factor Productivity Human Capital Consumption Physical Capital Labor Government Expenditures Investment Technology Net Exportsarrow_forward
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