Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 33, Problem 3QCMC
To determine
The impact of change in expected price level.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A change in the expected price level shifts
a. the aggregate demand curve.
b. the short-run aggregate supply curve, but not the long-run aggregate supply curve.
c. the long-run aggregate supply curve, but not the short-run aggregate supply curve.
d. both the short-run and the long-run aggregate supply curves.
When production costs rise, in the short run:
When production costs rise, in the short run:
A. the aggregate-supply curve shifts down to the right
B. the aggregate-demand curve shifts down to the left
C. the aggregate-demand curve shifts up to the right
D. the aggregate-supply curve shifts up to the left
E. both the aggregate-demand curve and the aggregate-supply curve shift to the left
Increases in the quality of inputs that do not affect the quantity of those inputs, increase
A. short - run aggregate supply but not long - run aggregate supply.
B. aggregate quantity supplied.
C. long - run aggregate supply but not short - run aggregate supply
D. both long - run aggregate supply and aggregate quantity supplied.
E. both long - run aggregate supply and short - run aggregate supply.
Chapter 33 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
Ch. 33.1 - Prob. 1QQCh. 33.2 - Prob. 2QQCh. 33.3 - Prob. 3QQCh. 33.4 - Prob. 4QQCh. 33.5 - Prob. 5QQCh. 33 - Prob. 1QRCh. 33 - Prob. 2QRCh. 33 - Prob. 3QRCh. 33 - Prob. 4QRCh. 33 - Prob. 5QR
Ch. 33 - Prob. 6QRCh. 33 - Prob. 7QRCh. 33 - Prob. 1QCMCCh. 33 - Prob. 2QCMCCh. 33 - Prob. 3QCMCCh. 33 - Prob. 4QCMCCh. 33 - Prob. 5QCMCCh. 33 - Prob. 6QCMCCh. 33 - Prob. 1PACh. 33 - Prob. 2PACh. 33 - Prob. 3PACh. 33 - Prob. 4PACh. 33 - Prob. 5PACh. 33 - Prob. 6PACh. 33 - Prob. 7PACh. 33 - Prob. 8PACh. 33 - Prob. 9PACh. 33 - Prob. 10PA
Knowledge Booster
Similar questions
- The quantity of aggregate output demanded will fall if Select one: a. net taxes are reduced. b. the price level increases. c. government spending increases. d. Aggregate supply increases.arrow_forwardWhat would be the effect of an unexpected increase in the price of oil on a graph showing aggregate demand and short-run aggregate supply that is initially in equilibrium? The effect of an unexpected increase in the price of oil will be for the A. aggregate demand curve to shift down. B. aggregate demand curve to shift up. C. short-run aggregate supply curve to shift up. D. short-run aggregate supply curve to shift down. The new equilibrium will be where A. the new short-run aggregate supply curve interects the original aggregate demand curve. B. the original short-run aggregate supply curve interects the original aggregate demand curve. C. the new short-run aggregate supply curve interects the original short-run aggregate supply curve. D. the new short-run aggregate supply curve interects a new aggregate demand curve.arrow_forwardAn increase in consumer confidence in a country will result in a 1.shift of the aggregate demand curve to the right. 2.shift of the aggregate demand curve to the left. 3.movement up the aggregate demand curve to a lower aggregate output. 4.movement down the aggregate demand curve to a higher aggregate output.arrow_forward
- Which of the following is consistent with the theory of aggregate supply? a. An increase in the expected price level shifts the short-run aggregate-supply curve to the left, and an increase in the actual price level shifts the short-run aggregate supply to the left. b. An increase in the expected price level shifts the short-run aggregate-supply curve to the right, and an increase in the actual price level shifts the short-run aggregate supply to the right. c. An increase in the expected price level shifts the short-run aggregate-supply curve to the left, and an increase in the actual price level does not shift the short-run aggregate supply. d. An increase in the expected price level shifts the short-run aggregate-supply curve to the right, and an increase in the actual price level does not shift the short-run aggregate supply. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of…arrow_forward4. Draw an ADAS graph at equilibrium. Suppose there is widespread fear of a recession. Which curve will shift? Draw the new equilibrium. Video Helparrow_forwardIf the economy is operating way below capacity, an increase in aggregate demand causes a big change in the and small change in Select one: a. aggregate demand; aggregate supply b. price level; output C. output; price level d. aggregate supply; aggregate demandarrow_forward
- The effect of an increase in the price level on the aggregate-demand curve is represented by a a. movement to the left along a given aggregate-demand curve. b. shift to the right of the aggregate-demand curve. c. shift to the left of the aggregate-demand curve. d. movement to the right along a given aggregate-demand curve.arrow_forwardEurope and Aisa both fall into deep economic recessions. What impact will this have on the U.S. aggregate demand? A. None B. U.S. aggregate demand shifts will be offset by aggregate supply shifts C. U.S. aggregate demand will decrease D. The U.S. aggregate demand curve will shift to the rightarrow_forwardA change in the expected price level shiftsa.the aggregate-demand curve.b.the short-run aggregate supply-curve,but not the long- run aggregate supply-curve.c.the long-run aggregate supply-curve,but not the short- run aggregate supply-curve.d.both the short-run and the long-run aggregate supply-curvearrow_forward
- Explain why the long-run aggregate-supply curve is vertical. Explain three theories for why the short-run aggregate-supply curve slopes upward. What variables shift both the long-run and short-run aggregate-supply curve? What variable shifts the short-run aggregate-supply curve but not the long-run aggregate-supply curve ?arrow_forward1) Define aggregate demand and aggregate supply. 2) Give three reasons why the aggregate demand curve slopes downward. 3) Give three reasons why the aggregate supply curve slopes upwards.arrow_forwardA change in which of the following would shift the short-run aggregate-supply curve but not the long-run aggregate-supply curve? a)the labor force b)the expected price level c)the capital stock d)the state of technologyarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co