Question

14.

Suppose a country’s population is growing due to immigration. In the long run, output will ________ due to ________.

remain unaffected; price adjustment

increase; an increase in short-run aggregate supply

increase; an increase in long-run aggregate supply

increase; an increase in both long-run and short-run aggregate supply

increase; an increase in aggregate demand

24.

Which of the following would cause an upward movement along the aggregate demand curve?

The value of the dollar increases.

There is an increase in expected income.

There is an increase in the expected price level.

An increase in the price level increases the value of real wealth.

An increase in housing prices increases the value of real wealth.

Answer 1

Answer: 14: Suppose a country’s population is growing due to immigration. In the long run, output will ________ due to ________.

increase; an increase in both long-run and short run aggregate supply

the increase in population will lead to increase in the aggregate demand in the economy it will be fulfilled by the increase in supply. Production level will increase, employment and investments will rise which will increase the output in the economy.

answer: 24 : cause an upward movement along the aggregate demand curve:

There is an increase in the expected price level.

The movement along the aggregate demand curve is caused by the changes in price level. When price increases there is upward movement and when price level decreases there is downward movement along the demand curve.

When price increases it leads to decrease in the value of real wealth

*please go through the options of 24th question again