Q: If the short-run aggregate supply curve intersects the aggregate demand curve to the right of…
A: The potential level of GDP is the level which can be achieved by the economy through the efficient…
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A: Aggregate demand is the total spending on domestically made goods and services in an economy.…
Q: A change in which one of the following factors would shift the aggregate supply curve? Multiple…
A: Answer: Option A (Government regulation) Explanation: Government regulation such as an increase in…
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Q: The short-run aggregate supply curve will shift up if-------. Select one: a. government spending…
A: The short-run aggregate supply curve is an upward sloping curve. While the long-run aggregates…
Q: A long-run equilibrium occurs when aggregate demand and aggregate supply are in equilibrium ____ a)…
A: In the long run, the actual GDP of an economy and the associated price levels are determined by…
Q: Europe and Asia both fall into deep economic recessions. What impact will this have on U.S.…
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Q: With respect to your knowledge of the economic impact of the coronavirus outbreak, explain how the…
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Q: Suppose an economy is in long-run equilibrium when housing prices increase causing household wealth…
A: In the above diagram, due to an economy is in long-run equilibrium when housing prices increase…
Q: True or false The aggregate supply curve is vertical in the long run at the full-employment level…
A: According to the given question Answer is TRUE
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A: Aggregate demand is the composition of consumption, investment, government spending, and net…
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Q: In the upward-sloping segment of the aggregate supply curve, a. producers can hire more workers…
A: The aggregate supply is total supply by all producers. The supply slopes upward signifying positive…
Q: A supply shock might lead to stagflation, if it shifts the short-run aggregate supply curve to the…
A: Aggregate supply refers to the total amount of all the goods and services supplied in an economy…
Q: When the aggregate supply curve is price of factors of production is fixed, with little or no upward…
A: Aggregate supply curve represents the total supply of goods and services by all firms in an…
Q: Suppose firms become very optimistic about future business conditions and invest heavily in new…
A: If firms become very optimistic about future business conditions and invest heavily in new capital…
Q: an increase in the price level cause the aggregate supply curve to shiftto anotherupply schedule.…
A: We are going to use AD-AS dynamics to answer this question.
Q: The aggregate supply curve is probably better thought of as a price/output response curve. Select…
A: Aggregate supply refers to the total value of goods and services available for purchase at a…
Q: Aggregate Supply Curve may shift to right due to improvement in technology
A: An rise in technology causes all AS curve to move rightward. A reduction in technology causes all AS…
Q: When aggregate supply curve shifts to the right because oil prices are decreasing, then: Group of…
A: In AD/AS diagram a shift in Aggregate Supply curve to the right will result in price level to fall…
Q: ) What is the equation of the long-run aggregate supply curve? The income velocity of money is…
A: Over the long haul, the aggregate supply curve is entirely upward, mirroring financial analysts'…
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Q: If for whatever reason, in the short run output is above potential output, over time, as prices…
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Q: If there is a temporary decrease in Aggregate Supply due to supply chain problems, • Prices will…
A: In this model the AD (aggregate demand) expresses the equilibrium in the goods and the money market.…
Q: A decrease in the availability of an important major resource such as oil shifts aggregate supply…
A: AS(aggregate supply) curve moves backwards or shifts to the left when there is a rise in the cost or…
Q: In the short run, the decrease in consumption spending due to the increase in saving shifts the…
A: Aggregate demand (AD) is the sum total amount of commodities and services demanded in an economy at…
Q: The upward slope of the short-run aggregate supply curve is based on the assumption that: 1)…
A: When talking about aggregate demand and aggregate supply, the slope of thise curves depends upon…
Q: increase in the amount of capital that firms purchase would initially shift: Question 52 options:…
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Q: An increase in price expectations shifts the long-run aggregate-supply curve to the left True/False
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Q: Suppose the United States passes a law that requires large businesses to provide one year of paid…
A: Factors affecting aggregate supply curve:- 1) Cost of Raw material:- Change in cost of raw material…
Q: MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the…
A: (Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Which of the following is most commonly used to monitor short-run changes in economic activity?…
A: Economic activity refers to those activity which leads to production in the economy.
Q: In a time of crisis where there is a pandemic, policymakers try to encourage economic activity by…
A: The use of government spending and tax strategies to impact economic conditions, particularly…
Q: An increase in the price level causes the aggregate supply curve to shift to another supply…
A: Answer- False
Q: The aggregate supply shifts to the right if: A. supplies of resources increase. B. investment…
A: The aggregate supply curve movements to one side as productivity increases or the cost of key…
Q: "The oil price run - up of 2007 - 08 was caused by strong demand confronting stagnating world…
A: If the oil price rises, then the cost of production will increase. Therefore, the supply of…
Q: Since an increase in inflation reduces planned spending and short-run equilibrium output: the…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 1)Potential output is the same as long-run aggregate supply. Select one: True False
A: Hey, Thank you for the question. According to our policy, we can only answer 1 question per session.…
Q: improvements in productivity shift the aggregate supply curve outward. true false
A: The aggregate supply curve shows the total quantity of output real GDP that firms will produce and…
Q: With respect to your knowledge of the economic impact of the coronavirus outbreak, explain how the…
A: Aggregate supply is an economy's gross domestic product (GDP), the total amount a nation produces…
Q: Aggregate supply grows over time because of growing consumer and government spending. True or…
A: Aggregate supply(AS) shows a direct-relationship between the price(P) and the quantity(Q)…
Q: An improvement in the level of technology in an economy will result in An upward movement along the…
A: ANSWER An improvement in the level of technology in an economy will result in
Q: Assess the validity of the following statement: An increase in government spending, the target…
A: When talking about a change in government spending, it can be said that it is one of the components…
Q: Researchers in an oil producing country discover a cost effective method using existing levels of…
A: As given that, researchers in an oil producing country discover a cost effective method using…
An increase in resources available would decrease potential
True or False
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- An increase in worker productivity/output per hour will shift the short run aggregate supply curve to the right True / FalseAn increase in the price level causes the aggregate supply curve to shift to another supply schedule. True or FalseResearchers in an oil producing country discover a cost effective method using existing levels of capital and labour to extract large amounts of petroleum resources that were previously inaccessible. All else equal, which of the following will most likely occur. Select one: The long run aggregate supply curve will shift to the left The long run aggregate supply curve will shift to the right The aggregate demand curve will shift to the left The aggregate demand curve will shift to the right
- If there is a temporary decrease in Aggregate Supply due to supply chain problems, • Prices will fall and output will rise • Prices will rise and output will fall • Prices and output will rise • Prices and output will fall.A long-run equilibrium occurs when aggregate demand and aggregate supply are in equilibrium ____ a) below potential output b) at potential output c) above potential output d) at any level of outputexplain how generation dispatch in a competitive market causes the aggregate supply curve to reflect the so called merit order
- Chose one from Multiple choice. 3. Which of the following statements is true if there is an increase in aggregate demand while the economy is in equilibrium on a positively sloping short-run aggregate supply curve? a) Prices rise, national income does not change B) Prices decrease, national income does not change C) Prices go up and national income goes down. D) Prices decrease and national income decreases. E) Prices rise, national income risesThe aggregate supply curve is probably better thought of as a price/output response curve. Select one: True FalseAn increase in price expectations shifts the long-run aggregate-supply curve to the left True/False
- A decrease in the availability of an important major resource such as oil shifts aggregate supply left. True or FalseWhich of the following would cause the aggregate supply curve to decrease? better equipment and increasing output throughout the economy. a tax cut to businesses. an increase in investor confidence leads to more investment. a rapid increase in energy prices throughout the country.All else equal, which of the following will result in a recession in the short run? Select all the answers that apply. Select one or more: A leftward/upward shift in the short run aggregate supply curve A rightward shift in the aggregate demand curve A leftward shift in the aggregate demand curve A rightward/downward shift in the short run aggregate supply curve
