A decrease in the price level will: (a) shift the AS curve to the left. (b) shift the AD curve to the left. (c) shift the AS curve to the right. (d) leave both the AD curve and the AS curve unchanged.
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Q.1.17 A decrease in the price level will:
(a) shift the
(b) shift the AD curve to the left.
(c) shift the AS curve to the right.
(d) leave both the AD curve and the AS curve unchanged.
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- A decrease in the price level will:(a) shift the AS curve to the left.(b) shift the AD curve to the left.(c) shift the AS curve to the right.(d) leave both the AD curve and the AS curve unchanged.In general, an increase in the price level results in a movement downward along the AD curve. movement upward along the AE curve. downward shift of the AE curve. upward shift of the AD curve.According to the AS-AD model, which of the following is true about output when there is an increase in the AD and no other change? (Select all that are true) There is a decrease in output in the short run There is an increase in output in the long run There is an increase in output in the short run There is no change in output in the long run There is no change in output in the short run There is a decrease in output in the long run
- Q2 An increase in the aggregate price level, P, will most likely have which of the following effects? Select one: a. an upward shift in the LM curve. b. a rightward shift in the IS curve. c. a downward shift in the LM curve. d. a leftward shift in the IS curve.Consider just the AD curve. Suppose consumption (C) broadly increases across the entire economy. This will cause a. a movement along the AD curve b. the AD curve to shift outward c. the slope of the AD curve to get steeper d. a decrease in the price level of the economyAn increase in the aggregate price level, P, will most likely have which of the following effects?Select one:a. an upward shift in the LM curve.b. a rightward shift in the IS curve.c. a downward shift in the LM curve.d. a leftward shift in the IS curve.
- Q.1.10 Strikes across a wide range of industries in South Africa in the first half of 2020 can be illustrated in the AD‐AS model as a: (2) (a) Leftward shift of the AD curve; (b) Rightward shift of the AD curve; (c) Leftward shift of the AS curve; (d) Rightward shift of the AS curve.An increase in the expected price level shifts the short-run aggregate supply curve to the right and an increase in the actual price level shifts SRAS to the left right and an increase in the actual price level does not shift the SRAS left, and an increase in the actual price level shifts SRAS to the right left and an increase in the actual price level shifts SRAS to the leftThe Keynesian view of the AD/AS model states that when beginning from potential output equilibrium, any decrease in AD will : Group of answer choices a Decrease real output and decrease prices b Decrease real output and increase prices c Decrease real output and do not affect prices d Increase real output and decrease prices
- Suppose that in 2005, nominal wages decrease in Torania. Show how this event will change equilibrium output and price level by shifting either the SRAS or AD curve.According to the two graphs, a decrease in the aggregate price level would cause a shift from: a. A to B b. B to C c. C to B (WRONG ANSWER) d. A to CSuppose an economy is initially in equilibrium at its potential level of output. As a result of an unexpected pandemic, the AD curve suddenly shifts to the left by a horizontal distance equal to $304 billion. How much will the output fall as a result of this shift in demand? (Calculate your answer in billions of CAD and write it without units. E.g., write 1 for $1 billion.