Question

In: Economics

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.

c.

more money, so they lend more, and the interest rate falls.

d.

more money, so they lend less, and the interest rate rises.

Expert Solution

1): B is right option

long-run aggregate supply shifts left

Aggregate Supply Curve is defined as total amount of goods and services that all industries in the economy will produce at every given price level / The sum of the supply curves of all the industries in the economy

2) :-B is right option

less money, so they lend more, and the interest rate falls

I am little confuse in 1 question SO if b is Wrong then its may A is right option

If you are satisfied with a answer plz Upvote thank you

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

Other things the same, which of the following is correct? a. A decrease in the price...

Other things the same, which of the following is correct? a. A decrease in the price level causes the dollar to appreciate. Aggregate demand shifts right. b. A decrease in the price level causes the dollar to depreciate. Aggregate demand shifts right. c. If speculators lose confidence in the American economy, the dollar appreciates. Aggregate demand shifts right. d. If speculators lose confidence in the American economy, the dollar depreciates. Aggregate demand shifts right.

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

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

Which of the following would cause a decrease in the price of a good? a. an...

Which of the following would cause a decrease in the price of a good? a. an increasing shift in the demand for good and no shift in supply b. an increasing shift in the supply of a good and no shift in demand c. an increasing shift in the demand for good and a decreasing shift in supply d. a decreasing shift in the supply of a good and no shift in demand

Other things being equal, which of the following could decrease the average cost of producing automobiles...

Other things being equal, which of the following could decrease the average cost of producing automobiles in the United States? A. An increase in wages paid to automobile workers. B. A decrease in the average product of automobile workers. C. An increase in the price of steel. D. An increase in the price of automobiles. E. An increase in the average product of automobile workers. The law of diminishing marginal returns implies that A. the marginal product of labor in...

Other things remaining the same, as Australian imports decrease, the quantity of a.Australian dollars supplied increases....

Other things remaining the same, as Australian imports decrease, the quantity of a.Australian dollars supplied increases. b.Australian dollars demanded decreases. c.foregin currency demanded decreases. d. foreign currency supplied decreases.

Which of the following would be correct assuming that interest rates decrease? A. The price of...

Which of the following would be correct assuming that interest rates decrease? A. The price of a bond will decrease while the reinvestment income will increase. B. The price of a bond will decrease while the reinvestment income will decrease. C. The price of a bond will increase while the reinvestment income will decrease. D. The price of a bond will increase while the reinvestment income will increase. E. none of the above is correct. Which of the following is...

Which of the following will cause a decrease in market price? a. A decrease in the...

Which of the following will cause a decrease in market price? a. A decrease in the number of sellers of the good b. A technological improvement in the production of the good c. An increase in the cost inputs for production of the good d. The imposition of a binding price floor in the market

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...

Which of the following would cause the aggregate price level to fall and the equilibrium level...

Which of the following would cause the aggregate price level to fall and the equilibrium level of real GDP to increase in the short run? Question 9 options: a) the short-run aggregate supply curve shifts left b) aggregate demand shifts left c) the short-run aggregate supply curve shifts right d) aggregate demand shifts right