Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 33, Problem 5QCMC
To determine
The cause of stagflation.
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Students have asked these similar questions
Aggregate Demand will increase if:
A. Imports fall.
B. Investment falls.
C. Consumption falls.
D. Exports fall.
Stagflation is caused by aa. leftward shift in the aggregate-demand curve.b. rightward shift in the aggregate-demand curve.c. leftward shift in the aggregate-supply curve.d. rightward shift in the aggregate-supply curve.
2. How does each of the following affect the aggregate demand curve?
a. Government spending increases.
b. The amount of taxes collected decreases.
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
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- From 2006 to 2008 there was a dramatic fall in the price of houses. If this fall made people feel less wealthy, then it would have shifted a. aggregate demand left. b. aggregate demand right. c. aggregate supply left. d. aggregate supply right.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_forwardConsider each of the following events and then figure out how each of these events will affect the aggregate demand curve. a. An increase in the price level will cause a b. An increase in government purchases will cause a c. An increase in state income taxes will cause a d. An increase in interest rates will cause a e. A faster income growth in other countries will cause a the aggregate demand curve. the aggregate demand curve. the aggregate demand curve. the aggregate demand curve. the U.S. aggregate demand curve.arrow_forward
- If the price level rises, what happens to aggregate supply? Aggregate supply _______. A. doesn't change, but the quantity of real GDP supplied increases B. decreases C. increases D. doesn't change, but the quantity of real GDP supplied decreasesarrow_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_forwardWhich does not increase aggregate demand?Select one: a.lower income taxes. b.lower value of Canadian dollar. c.consumers become more optimistic. d.lower interest rates. e.technological innovations.arrow_forward
- What is the relationship between the price level and the following components of aggregate demand? a. There is (a negative/ no / a positive) relationship between the price level and consumption. b. There is (a negative/no/ a positive) relationship between the price level and investment. c. There is (a negative/no/ a positive) relationship between the price level and government spending. d. There is (a negative/no/ a positive) relationship between the price level and net exports.arrow_forwardWhich of the following leads to a rightward shift in the aggregate demand? a. General price level fall b. Rise in government spending c. General price level rise d. Fall in government spendingarrow_forwardAggregate demand will shift to the right, if: Selected Answer: B. the aggregate price level increases. Answers: A. there is an increase in taxes. B. the aggregate price level increases. C. there is a decrease in money supply. D. the government purchases increase.arrow_forward
- The aggregate supply shifts to the right if: A. supplies of resources increase. B. investment increases. C. wage rates increase. D. consumption increases.arrow_forwardThe 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_forwardA 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.arrow_forward
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