5. Statistics show that from 2017 to 2018, unemployment decreased while inflation also decreased. Which of the following is a valid reason behind these changes? Aggregate supply curve shifted to the right, which caused the price level to decrease and national output to increase Aggregate supply curve shifted to the left, which caused the price level to increase and national output to decrease Aggregate demand curve shifted to the right, which caused the price level and national output to increase Aggregate demand curve shifted to the left, which caused the price level and national output to decrease

5. Statistics show that from 2017 to 2018, unemployment decreased while inflation also decreased. Which of the following is a valid reason behind these changes? Aggregate supply curve shifted to the right, which caused the price level to decrease and national output to increase Aggregate supply curve shifted to the left, which caused the price level to increase and national output to decrease Aggregate demand curve shifted to the right, which caused the price level and national output to increase Aggregate demand curve shifted to the left, which caused the price level and national output to decrease

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter26: The Neoclassical Perspective

Section: Chapter Questions

Problem 21P: Use Table 26.3 to answer the following questions. Sketch an aggregate supply and aggregate demand...

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Similar questions

If aggregate supply is vertical, what role does aggregate demand play in determining output? In determining the price level?
Suppose the economy is operating at potential GDP when It experiences an increase in export demand. How might the economy increase production of exports to meet this demand, given that the economy is already at full employment?
On a microeconomic demand curve, a decrease in price causes an increase in quantity demanded because the product in question is now relatively less expensive than substitute products. Explain why aggregate demand does not increase for the same reason in response to a decrease in the aggregate price level. In other words, what causes total spending to increase if it is not because goods are now cheaper?
Use Table 26.3 to answer the following questions. 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?
Suppose the Federal Reserve begins to Increase the supply of money at an Increasing rate. What Impact would that have on GDP, unemployment, and inflation?
Table 24.4 describes Santhers economy. Plot the AD/AS curves and identify the equilibrium. Would you expect unemployment in this economy to be relatively high or low? Would you expect prices to be a relatively large or small concern for this economy? Imagine that input prices fall and so AS shifts to the right by 150 units. Identify the new equilibrium. How will the shift in AS affect the original output, price level, and employment?
42. Suppose that there is a temporary fall in aggregate supply due to a drought. Whathappens in the long-run?(A) Higher prices cause permanent tensions, leading long-run aggregate supply to shiftleft, resulting in a lower natural rate of output.(B) Over time, as the drought conditions fade, aggregate supply rises and returns tothe original natural rate of output.(C) Aggregate demand shifts right, so that prices are higher but long-run output isunchanged.(D) If the person you’re dating enjoys Taylor Swift, dump them immediately