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A: Shift in aggregate demand will have effects on both price level and real GDP.
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Q: 19. What sequence of events results from a decrease in aggregate demand? PI, inventories Į, firms…
A: A decrease in aggregate demand leads to a result of sequence which is explained in the next step.
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- 19. Which action would cause the aggregate supply curve slope to change in the short run? A. high income taxes B. changes in profit C. shortages in a specific market D. free marketExplain the concept of excess demand in macroeconomics. Also, explain the role of open market operation in correcting it. (Kinly explain with diagram)1. Write the definition of Macroeconomics with example? 2. Describe the concept of aggregate demand and aggregate supply? 3. In macroeconomy how and where we will get the equilibrium level with the help of aggregate demand and aggregate supply?
- 1. Write the definition of Macroeconomics with example? ANSWER: 2. Describe the concept of aggregate demand and aggregate supply? ANSWER: 3. In macroeconomy how and where we will get the equilibrium level with the help of aggregate demand and aggregate supply? ANSWER:1. Aggregate supply definitions 1. The short-run aggregate supply curve shows: a. The relationship between the price level and aggregate expenditure b. What happens to the level of real GDP suppliers are willing and able to produce in an economy as the overall price level changes, during a period in which output prices can change but input prices are fixed c. How firms respond to changes in interest rates d. What happens to output in an economy when the government spends more money 2. Which of the following are assumed to remain unchanged along a given short-run aggregate supply curve? Check all that apply. Real GDP Input prices The position of the aggregate demand curve The technology available to firms 3. The natural rate of unemployment refers to: a. The unemployment rate that occurs when an economy’s real GDP is equal to its potential output b. The unemployment that arises due to purely seasonal factors, such as unemployed lifeguards in the…In 2006, the economy of Aptonville had an aggregate demand and aggregate supply according to the following schedule: Price Level Aggragate Demand Shortrun Aggragate Supply 90 $1325 $1085 100 $1300 $1140 110 $1275 $1195 120 $1250 $1250 130 $1225 $1305 140 $1200 $1360 150 $1175 $1415 What was Aptonville’s short-run equilibrium output in 2006?
- 2. The Aggregate Supply (AS) curve slopes upward to reflect the profit motive of businesses. So, why are there two versions of the AS curve( i.e. short run and long- run). Discuss.(a) In the short run, the aggregate supply curve is (b) In the long run, the aggregate supply curve is Part 2 Which of the following explain the shape of the short-run aggregate supply curve? Choose one or more: OA. inflexible input prices OB. money illusion OC. international trade effects OD. menu costs O E. wealth effectsWhat is ? 1-)Required Reserve 2-)Aggregate Supply 3-)Aggregate Dernand
- Assume that the stock market increases by 5% this month. As a result Question 6 options: a) the aggregate demand curve shifts right b) the aggregate demand curve shifts left c) the short-run aggregate supply curve shifts right d) the short-run aggregate supply curve shifts leftPrice Level Aggregate Supply Aggregate Demand 90 3,000 3,500 95 3,000 3,000 100 3,000 2,500 105 3,000 2,200 110 3,000 2,100 Table 1. Sketch an aggregate supply and aggregate demand diagram. What is the equilibrium output and price level? If aggregate demand shifts right, what is equilibrium output? If aggregate demand shifts left, what is equilibrium output? In this scenario, would you suggest using aggregate demand to alter the level of output or to control any inflationary increases in the price level?3. Currently, there is world-wide shortage of computer microchips.Determine the effects on: a. Supply of Toyota automobiles made in Ontario. b. Supply of peanuts grown in SouthwesternOntario. c. Demand for automobiles in Canada. d. GDP in Canada. e. Short-run aggregate demand and aggregate supply in Canada’s economy.