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- the equilibrium price level and the equilibrium level of real GDP are jointly determned by the intersection of the economy's aggregate supply and ggregate demand schedule true falseif european economies experience a period of sustained recession and the US does not, what will happen in the US a. an increase in aggregate deman b. increase in aggregate supply c. decrease in aggregate demand d. decrease in aggregate supplyAssume there is no change in aggregate supply and no change in government policy, an increase in consumer confidence will ______ unemployment and price level will _______.
- Suppose the economu is operating at less than full employment. an increase in aggregate demand will result in: A. An increase in the general price level and perhaps an increase in the general price level B. A decrease in the general price level and perhaps a decrease in aggregate demand C. An increase in aggregate output and perhaps a decrease in the general price level D. An increase in the general price level and perhaps a decrease in aggregate outputWhich items describe long-run aggregate supply (LRAS), and which ones describe short-run aggregate supply (SRAS)? Long-Run Aggregate Supply The unemployment rate, u, may be above or below the natural rate. Unemployment is at the natural rate, u*. All prices can change. Short-Run Aggregate Supply + Only some prices can change. The economy's output may be above or below the full-employment level, Y*. The economy's output, Y, is at the full- employment level.Assume an economy operates in the intermediate range of its aggregate supplycurve. For each of the following changes in conditions, state the direction of theeffect on: aggregate demand, aggregate supply, price level, real GDP.(a) A decrease in government expenditure in infrastructure(b) A severe recession occurs in a country which has been a major importer of thenation’s exports.(c) The federal government increases business taxes with diagram
- Suppose the economy experiences a "supply shock" due to a fall in oil prices. As a result, the economy experiences a/an ___________in the price level and a/an _______in the level of output(GDP) Group of answer choices Decrease; decrease Increase; increase Decrease; increase Increase; decreasDetermine the effect on aggregate demand/ Short Run Agrregate supply of each of the followingevents. Explain whether it represents a movement along the aggregate demand/ Short run Aggregatesupply curve (up or down) or a shift of the curve (leftward or rightward).a) News of a worse-than-expected job market next yearb) A rise in the consumer price index (CPI) leads producers to increase output.c) A rise in legally mandated retirement benefits paid to workers leads producers to reduceoutput.d) As a result of an increase in the value of the dollar in relation to other currencies, Americanproducers now pay less in dollar terms for foreign steel, a major commodity used in production.e) An increase in the quantity of money by the Federal Reserve increases the quantity of moneythat people wish to lend, lowering interest rates.f) Greater union activity leads to higher nominal wages.g) A fall in the aggregate price level increases the purchasing power of households’ and firms’money holdings. As…The steeper the short run aggregate supply curve? Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.
- Aggregate supply curve slopes upward to the right because of sticky profits. True or False. TrueFalseIf an increase in aggregate expenditures results in no increase in real GDP we can surmise that the: Select one: price level has fallen. MPC equals 1. economy is already operating at full employment. there is demand-pull inflation. economy is in a deep recession.18 - : If aggregate demand increases in an economy while aggregate demand is constant in the short run, which of the following statements is correct for the new equilibrium point?A) price decreases and national income increasesB) price rises national income risesC) price increases and national income does not changeD) price goes up and national income goes downE) price decreases and national income decreases.19 - : In which of the following expressions is the equation of change given correctly?A) MV=VK B) MT=PV C) MV=PT D) MP=VY E) MV=P
