Fill-in-the-Blank: The economy self-corrects for a short-run recession through __________ wages and prices.

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…

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…

Q: Starting with a short run and long run equilibrium, assume a war breaks out, then," a.government…

A: Short-run equilibrium occurs at the intersection point of the short-run aggregate supply (SRAS) and…

Q: Which of the following is most commonly used to monitor short-run changes in economic activity?…

A: The real GDP is most commonly used to monitor short-run changes in economic activity. While…

Q: Stagflation is caused by an increase in cost-push inflation. The increase in costs can be caused by…

A: Given the statement is Stagflation is caused by an increase in cost-push inflation. The increase in…

Q: Europe and Asia both fall into deep economic recessions. What impact will this have on U.S.…

A: Aggregate demand refers to the amount of sales proceeds which an entrepreneur actually expects from…

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

Q: A decrease in government spending will decrease aggregate demand (AD) and cause prices to decrease…

A: Aggregate demand is the composition of consumption, investment, government spending, and net…

Q: Which of the following would decrease short run aggregate supply?

A: Short run aggregate supply curve is positively sloped as when prices rises, quantity supplied also…

Q: Multiple choice. 3. Which of the following statements is true if there is an increase in aggregate…

A: increase in aggregate demand while the economy is in equilibrium on a positively sloping short-run…

Q: The short-run aggregate supply curve is upward sloping because Select one: O a. a lower price level…

A: Aggregate supply is the total output of goods and services that the producers want to produce at…

Q: Which of the following explains why the long-run aggregate supply curve corresponds to the…

A: PPC demonstrates different amount of two commodities that a nation can produce with its available…

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: Members of Congress are interested in increasing the minimum wage from its current rate of $7.25 an…

A: A minimum wage law gives rise to unemployment in the economy as the wage set by the government is…

Q: If policymakers decrease aggregate demand, then in the short run the price level Answer falls and…

A: Aggregate demand is the sum of the demand for current output by each of the buying sectors of the…

Q: government increases spending on national defense. based on the statement above, explain the…

A: I will show the effect of the increased spending on the national defense by using the AD-AS model.…

Q: An increase in resources available would decrease potential GDP and the long-run aggregate supply…

A: The goods and services are produced with the help of the resources available in the economy. The…

Q: An increase in price expectations shifts the long-run aggregate-supply curve to the left True/False

A: # While making the final purchases, we often has to keep some reference points. Such reference…

Q: The Chinese economy is at full employment when the global economy goes into recession. Explain the…

A: Global recession: It refers to the level of unemployment at the global level. The increase in the…

Q: or False: The economy is currently in short-run equilibrium.

A: True  The economy is in short run equilibrium where SRAS = AD at 80 units of output and $ 100 price…

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: If wages and prices are fully flexible, output gaps will automatically close in The Ling-Run The…

A: Short run refers to the period of time where at least one factor of production is fixed. Long run…

Q: A country is currently in a recession. ( a. Illustrate this economy on a fully-labeled aggregate…

A: Recession refers to the situation where economic activities slow down and output growth is less than…

Q: A country is currently in a recession. ( a. Illustrate this economy on a fully-labeled aggregate…

A: Recession refers to the situation where economic activities slow down and output growth is less than…

Q: True or False? Looking along the aggregate demand curve, deflation will lead to a lower level of…

A: Aggregate demand shows inverse relationship between price and real GDP. It means decrease in price…

Q: If the price level rises and the money wage rate  rises by the same percentage, what happens to the…

A: Answer: The quantity of real GDP will not change and there will be an upward movement along the…

Q: Describe how different parts of the economy may have experienced shifts and changes in supply and…

A: Components that can move the call for bend for labor and merchandise, making an exchange quantity be…

Q: What happens when firms and workers underestimate future prices in the economy? Explain the answer…

A: Expectation about future price and actual price is plays a significant role in the growth of…

Q: If the government increases both taxes and government spending by $25 billion, the price level and…

A: Aggregate demand is composed of consumption spending, investment spending, government purchases and…

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: The short-run aggregate supply curve is upward sloping because Select one: a. lower taxes motivate…

A: The aggregate supply curve is the summation of all the individual supply curves in the economy. This…

Q: Assume the economy is in long-run equilibrium in 2019. Use the Aggregate Demand and Aggrecate Supply…

A: Since F part is missing, we'll be answering only C and D. Please resubmit the question with F part

Q: The real wealth effect explains why the aggregate supply curve is horizontal in the long run.…

A: The real wealth effect explains that if the price level decreases, then the purchasing power of the…

Q: Aggregate supply (AS) denotes the relationship between the __________________ that firms choose to…

A: Aggregate supply shows positive relationship between price and quantity of output. It is derived…

Q: “Members of Congress are interested in increasing the minimum wage from its current rate of $7.25 an…

A: Low-skilled workers generally find it difficult to find a job. Their value is very less and they…

Q: In the short run, policy that changes aggregate demand changes Answer both unemployment and the…

A: In the short run, the aggregate supply curve is upward sloping and the aggregate demand curve is…

Q: long-run aggregate supply curve

A: The total demand generation by all the consumers at given price during given duration depicts…

Q: The graph above refers to a significant increase in individual income taxes, taking them to their…

A: The aggregate demand is summation of consumption expenditure, investment expenditure, government…

Q: The long-run aggregate supply curve shifts right if Answer immigration from abroad increases. the…

A: The aggregate supply refers to the total quantity of all the goods, and services produced in an…

Q: All of the following impact (shift) the short-run aggregate supply curve EXCEPTtechnological…

A: In the short run, the factors that lead to a change in the aggregate supply curve are,change in…

Q: A country is currently in a recession. ( a. Illustrate this economy on a fully-labeled aggregate…

A: Recession refers to the situation where economic activities slow down and output growth is less than…