With reference to the relevant four-quadrant diagram, and
assuming no change in long-run exchange rate expectations, use
Harvey's exchange rate model to discuss the potential impact on
interest rates, exchange rates and employment of a fiscal
stimulus.
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.
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...
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?
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?
An increase in price expectations shifts the Phillips
curve upward and
makes the inflation unemployment trade-off less favourable.True or
false?(+explanation)
9. A Change in the Autonomous Consumption: What are the
short-run and long-run effects of an increase in autonomous
consumption on output, the interest rate and the price level? Use
an IS-LM graph and an aggregate demand graph to support your
answer. Include a brief explanation in your answer and be sure to
properly label your graphs.10. A Change in Government Spending: What are the short-run and
long-run effects of a decrease in government spending on output,
the interest rate...
The long-run aggregate supply curve shifts right at the same
time as
A.wages increase.
B.the production possibilities curve shifts inward.
C.the inflation rate increases.
D.the production possibilities curve shifts outward.