Which of the following would make the price level increase and real GDP decrease?

a. aggregate demand shifts right.

b. long-run aggregate supply shifts right

c. aggregate demand shifts left

d. long-run aggregate supply shifts left

Expert Solution

Ans. d. long - run aggregate supply shifts left

When long - run aggregate supply curve shifts left, given the aggregate demand curve, the price level increases and the real GDP decreases.

Note: the reason of the leftward shifts of aggregate supply curve

1) decrease in workforce ( number of labors )

2) increase in the natural rate of unemployment

Rahul Sunny answered 2 years ago

Which of the following, other things the same, would make the price level decrease and real GDP increase?

Which of the following, other things the same, would make the price level decrease and real GDP increase? a. long-run aggregate supply shifts right b. aggregate demand shifts left c. aggregate demand shifts right d. long-run aggregate supply shifts left

Which of the following will increase both the price level and real GDP? Group of answer...

Which of the following will increase both the price level and real GDP? Group of answer choices A nationwide drought that drives up the prices of agricultural products A reduction in government spending for goods and services Greater optimism among business executives The aggregate demand curve is Group of answer choices Downward sloping because a reduction in the price level leads to a lower interest rate, causing consumption and investment spending to increase Downward sloping because a reduction in the...

(A) (B) (C) Price Level Real GDP Price Level Real GDP Price Level Real GDP 110...

(A) (B) (C) Price Level Real GDP Price Level Real GDP Price Level Real GDP 110 290 100 215 110 240 100 265 100 240 100 240 95 240 100 265 95 240 90 215 100 290 90 240 a. Which set of data illustrates aggregate supply in the immediate short-run in North Vaudeville? The data in (Click to select)CAB. Which set of data illustrates aggregate supply in the short run in North Vaudeville? The data in...

1 .Which of the following, other things the same, would make the price level decrease and...

1 .Which of the following, other things the same, would make the price level decrease and real GDP increase? a. long-run aggregate supply shifts right b. long-run aggregate supply shifts left c. aggregate demand shifts right d. aggregate demand shifts left 2. Other things the same, an increase in the price level induces people to hold a. less money, so they lend less, and the interest rate rises. b. less money, so they lend more, and the interest rate falls....

The price level will increase while real GDP decreases when:

The price level will increase while real GDP decreases when: aggregate demand decreases/shifts to the left short-run aggregate supply decreases/shifts to the left short-run aggregate supply increases/shifts to the right aggregate demand increases/shifts to the right

7. Which of the following explains an decrease in real GDP and a decrease in the...

7. Which of the following explains an decrease in real GDP and a decrease in the price level? A. All of the choices are correct B. an increase in Aggregate Supply C. None of the choices is correct D. a decrease in Aggregate Supply E. an increase in Aggregate Demand 10. How would a dramatic decrease in the value of the stock market shift the AD curve? What effect would this shift have on the equilibrium GDP and the price...

Analyse the effect of the following on GDP and the price level: a) A decrease in...

Analyse the effect of the following on GDP and the price level: a) A decrease in taxes, while excess capacity exists in the economy. b) Technological advancements which when applied to secondary and tertiary sectors improve productivity and overall output levels. c) A fall in interest rates, when the economy is approaching the peak stage of the business cycle. d)An increase in the price of oil which is key input into the production process of the manufacturing sector which represents...

Consider the following table for the U.S. Year Potential Real GDP Real GDP Price Level Federal...

Consider the following table for the U.S. Year Potential Real GDP Real GDP Price Level Federal Funds Rate 2006 $15.3 trillion $15.3 trillion 90.1 5.0% 2007 $15.6 trillion $15.6 trillion 92.5 5.0% 2008 $15.9 trillion $15.6 trillion 94.3 1.9% 2009 $16.1 trillion $15.2 trillion 95.0 0.2% 2010 $16.3 trillion $15.6 trillion 96.1 0.2% 2011 $16.5 trillion $15.8 trillion 98.1 0.1% 2012 $16.7 trillion $16.2 trillion 100.0 0.1% 2013 $17.0 trillion $16.5 trillion 101.6 0.1% 2014 $17.3 trillion $16.9 trillion 103.6...

11. Consider whether each of the following events is likely to increase or decrease real GDP....

11. Consider whether each of the following events is likely to increase or decrease real GDP. In each case, do you think the well-being of the average person in society most likely changes in the same direction as real GDP? Why or why not? a. A hurricane in Florida forces Disney World to shut down for a month. b. The discovery of a new, easy-to-grow strain of wheat increases farm harvests. c. Increased hostility between unions and management sparks a...

An oil price _______ is a sudden increase or decrease in the nominal or real price...

An oil price _______ is a sudden increase or decrease in the nominal or real price of oil. This is an example of a ________ -side shock. Fill in the blanks

Question