If aggregate supply decreases, then inflation _______________ and unemployment _______________. a)increases; increases b) increases; decreases c) decreases; increases d) decreases; decreases e) decreases; stays the same
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If
a)increases; increases
b) increases; decreases
c) decreases; increases
d) decreases; decreases
e) decreases; stays the same
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- Assuming aggregate demand remains constant, supply shocks that cause a leftward shift in the aggregate supply curve will------. Select one: a. decrease prices b. increase real output c. decrease the rate of unemployment d. increase both prices and the rate of unemploymentAggregate supply curve slopes upward to the right because of sticky profits. True or False. TrueFalse. When aggregate supply is decreased it results in ________ inflation and _______output and jobs.higher, higherhigher, lowerlower, higherlower, lower
- no more explanation . please as soon as possible How would each of the following factors shift the aggregate demand curve? d. an increase in the future marginal product of capital. e. an increase in the nominal money supply.f. an increase in expected inflation.g. an increase in the risk of non-monetary assetsIf aggregate demand (AD) decreases, then output will increase; return to the previous level remain unchanged; increase increase; increase decrease; decrease decrease; return to the previous level in the short run and in the long run.Assuming a stable short-run supply curve, what will happen if there is a shift in aggregate demand? a) Profits and output increase in the long-run. b) Unemployment decreases in the long-run. c) Profits and output decrease in the short-run. d) Unemployment increases in the short-run. e) Unemployment and prices move in opposite directions in the short-run.
- Assume that the stock market increases by 5% this month. As a result Question 6 options: a) the aggregate demand curve shifts right b) the aggregate demand curve shifts left c) the short-run aggregate supply curve shifts right d) the short-run aggregate supply curve shifts leftPlease answer all parts of the question! Thank you! 1. Answer each of the questions completely. Make sure your example clearly demonstrates your understanding of each concept. (a) Describe the four shifters of Aggregate Demand AND provide an example of each (____/2) (b)Describe the three shifters of Aggregate Supply AND provide an example of each (____/1) (c) What shifters the Long-Run Aggregate Supply Curve? (____/1) (d) Explain what an Inflationary (Positive Output) Gap and a Recessionary (Negative Output) Gap are, including what happens to unemployment and output (____/2)What effects would each of the following have on aggregate demand or aggregate supply? In each case use a diagram to show the expected effects on the equilibrium price level and the level of real output. Assume all other things remain constant.a. A widespread fear of depression on the part of consumers.b. A $2 increase in the excise tax on a pack of cigarettes.c. A reduction in interest rates at each price level.d. A major increase in Federal spending for health care.e. The expectation of rapid inflation.f. The complete disintegration of OPEC, causing oil prices to fall by one-half.g. A 10 percent reduction in personal income tax rates.h. A sizable increase in labor productivity (with no change in nominal wages).i. A 12 percent increase in nominal wages (with no change in productivity).j. Depreciation in the international value of the dollar.
- If an economy is on the horizontal portion of the aggregate supply curve, then it is: A.)in a severe recession. B.)overheating. C.)at full employment. D.)experiencing inflation.During the transition from the short run to the long run, price level expectations will (remain the same, increases, decreases), and the (aggregate demand, short-run aggregate supply) curve will shift to the (left, right). In the long run, as a result of the investment tax credit, the price level (remain the same, increases, decreases), the quantity of output (rises above, falls below, returns to) potential output, and the unemployment rate (rises above, falls below, returns to) the natural rate of unemployment.other things equal, which of the following would be expected to shift aggregate demand to the right? 1. A decrease in the price level 2. Many of our major trading partners experience a recession 3. A decline in business confidence about future growth 4. an increase in home values.
