Question
In: Economics
1) In the long run, the short-run aggregate supply curve shifts to eliminate any existing output...
1) In the long run, the short-run aggregate supply curve shifts to eliminate any existing output gaps. Depict the parallel shift of the short-run aggregate supply curve that occurs in the long run.
2) Following a reduction in consumer spending, in the long run, what is the value of real GDP in this economy?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
What shifts the short run aggregate supply curve? What is the shape of the long run...
What shifts the short run aggregate supply curve?
What is the shape of the long run aggregate supply curve and why
is it that way?
What does potential output mean and what is happening when the
economy is at potential output?
10. The long-run aggregate supply curve shifts right if
10. The long-run aggregate supply curve shifts right if a. Immigration from abroad increases b. The capital stock increases c. Technology advances d. All of the above are correct 11. Which of the following would cause prices to decrease and real GDP to increase in the short run? a. Short-run aggregate supply shifts right. b. Short-run aggregate supply shifts left. c. Aggregate demand shifts right. d. Aggregate demand shifts left. 12. Which of the following is not a reason the New York Federal Reserve Bank president always gets to vote at...
In the short run, an increase in government purchases, a. shifts the aggregate supply curve to...
In the short run, an increase in government purchases,
a. shifts the aggregate supply curve to the right
b. increases real GDP
c. shifts the aggregate demand curve to the left
d. decreases the price level
Which of the following shifts the short-run, but not the long-run, aggregate supply right?
56. Which of the following shifts the short-run, but not the long-run, aggregate supply right? A. a decrease in the price level B. a decrease in the expected price level C. a decrease in the capital stock D. a decrease in the savings rate 57. Which of the following would cause prices and real GDP to rise in the short run? A. Short-run aggregate supply shifts right. B. Short-run aggregate supply shifts left. C. Aggregate demand shifts right. D. Aggregate demand shifts left.
Draw a diagram with an aggregate demand curve, a short-run aggregate supply curve, and a long-run...
Draw a diagram with an aggregate demand curve, a short-run
aggregate supply curve, and a long-run aggregate supply curve, for
an economy facing a recessionary gap. a) If the government does not
intervene to close this gap, describe what will happen to this
economy over time. Illustrate with a diagram. b) Describe the
policies that the government could use to return the economy to
long-run macroeconomic equilibrium, when it is facing a
recessionary gap. Illustrate with a diagram. c) What...
Draw a diagram with an aggregate demand curve, a short-run aggregate supply curve, and a long-run...
Draw a diagram with an aggregate demand curve, a short-run
aggregate supply curve, and a long-run aggregate supply curve, for
an economy facing a recessionary gap. a) If the government does not
intervene to close this gap, describe what will happen to this
economy over time. Illustrate with a diagram. b) Describe the
policies that the government could use to return the economy to
long-run macroeconomic equilibrium, when it is facing a
recessionary gap. Illustrate with a diagram. c) What...
) Explain whether each of the following events shifts the short-run aggregate supply curve, the aggregate...
) Explain whether each of the following events shifts the
short-run aggregate supply curve, the aggregate demand curve, both,
or neither. For each event that does shift a curve draw a diagram
to illustrate the effect on the economy (you don’t have to send me
the graphs, but you should draw them on scratch paper for
practice).
Households decide to save a larger share of their income.
Florida orange groves suffer a prolonged period of
below-freezing temperatures.
Increased job opportunities...
1. Explain why the long-run aggregate supply (LRAS) curve is vertical while the short-run aggregate supply...
1. Explain why the long-run aggregate supply (LRAS)
curve is vertical while the short-run aggregate supply (SRAS) curve
slope upwards. List and discuss briefly the variables that could
cause the LRAS and the SRAS curves to shift. For each variable,
identify whether an increase in that variable will cause the curves
(LRAS and SRAS curves) to shift to the right or to the left.
2. What are the main roles of the Reserve Bank of
Australia (RBA)? How does the...
Using the aggregate demand-aggregate supply diagram, briefly explain 1. the Short-Run and Long-Run effects (on output...
Using the aggregate demand-aggregate supply diagram, briefly
explain
1. the Short-Run and Long-Run effects (on output and prices) of
an Increase in money supply.
2. the Short-Rin and Long-Run effects (on output and prices) of
a negative demand shock
3. how stabilizing monetary policy deal with an adverse supply
shock.
Course relate to Macroeconomics ch. 10 Introduction to Economic
Fluctuations
The short-run aggregate supply curve shows: a. What happens to output in an economy as the...
The short-run aggregate supply curve shows:
a. What happens to output in an economy as the actual price
level changes, holding all other determinants of real GDP
constant
b. How firms respond to changes in interest rates
c. The relationship between the price level and aggregate
expenditure
d. What happens to output in an economy when the government
spends more money
Which of the following are assumed to remain unchanged along a
given short-run aggregate supply curve? Check all that...
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