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.
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If an economy is on the horizontal portion of the
A.)in a severe recession.
B.)overheating.
C.)at full employment.
D.)experiencing inflation.
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- Which of the following would shift the long-run aggregate supply curve to the right?a. a decrease in the rate of inflationb. an increase in the growth rate of spendingc. a severe drought that decreases crop production and as a result raises pricesd. the invention of a new computer chip that makes assembly production twice as fastWhich of the following would cause the aggregate supply curve to increase... A) Energy prices such as gas and electricity have increased rapidly throughout the country. B) The government has reduced its spending by more than 10% over the last 2 years C) Consumers are more confident and spending more than before. D) Throughout the economy, workers are using better equipment and output per hour is rising.True or false The aggregate supply curve is vertical in the long run at the full-employment level of output
- 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.Which of the following statements will not parallel shift the aggregate supply curve? A. A reduction in business taxes. B. A reduction in the price of imported oil. C. An increase in labor productivity. D. A reduction in the general level of prices Please do fast ASAP fastWhen firms face an increase in the cost to produce goods and services, the Aggregate Supply curve will _______. shift downward move along the curve shift upward no change shift downward move along the curve shift upward no change
- If aggregate supply is vertical, then which of the following statements must be true? Aggregate demand does not affect the quantity of output. Inflation creates greater social benefits. Inflation will accompany any rise in output. Aggregate demand does not cause inflationary changes in price level.Aggregate demand is the total quantity of output A)consumers actually buy. B) producers are able and willing to supply at different price levels. C) demanded if the economy is in equilibrium. D) demanded at different price levels in a given time period.If the economy is in a recession due to aggregate demand shifting inward and the economy is contracting, if aggregate demand doesn't improve, we can expect the short-run aggregate supply curve to a. become the long-run aggregate supply curve. b. shift inward. c. will remain unchanged. d. shift outward but real GDP will be unchanged.
- In response to the demands of environmentalists, large sections of timberlands are put off limits to logging. What effect will this have on the aggregate supply curve? a. Shift the curve inward. b. Move the economy down along the curve. c. Move the economy up along the curve. d. Shift the curve outward.Which factor will cause the aggregate demand curve to shift to the right? 1. reduction in the aggregate price level 2. decrease in foreign income 3. increase in interest rates 4. reduction in personal income taxes