If investment as a fraction of GDP rose substantially and then stayed at a high level, what would be the effect onaggregate supply over time?It will shift both the SRAS and LRAS right.It will shift the SRAS right, but not the LRAS.It will shift the LRAS to the left, but not the SRAS.It will shift both the SRAS and the LRAS left. When does cost-push inflation occur?when the aggregate demand curve shifts rightward and aggregate supply is fixedwhen the short-run aggregate supply curve shifts leftward while aggregate demand is fixedwhen the short-run aggregate supply curve shifts rightwardwhen the aggregate demand curve shifts leftward at a faster rate than short-run aggregate supply1.5

In macroeconomics, the term “aggregate supply” refers to the total volume of goods and services…

If investment as a fraction of GDP rose substantially and then stayed at a high level, what would be the effect on aggregate supply over time? It will shift both the SRAS and LRAS right. It will shift the SRAS right, but not the LRAS. It will shift the LRAS to the left, but not the SRAS. It will shift both the SRAS and the LRAS left.

If investment as a fraction of GDP rose substantially and then stayed at a high level, what would be the effect on aggregate supply over time? It will shift both the SRAS and LRAS right. It will shift the SRAS right, but not the LRAS. It will shift the LRAS to the left, but not the SRAS. It will shift both the SRAS and the LRAS left.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 3WNG

See similar textbooks

Similar questions

If investment increases by $50 billion, by how much will aggregate demand change? Aggregate demand will _______. A. increase by less than $50 billion because there will be fewer goods and services produced for consumption expenditure B. increase by more than $50 billion because the increase in aggregate income induces an increase in consumption expenditure C. probably decrease by $50 billion, but it depends on the change in aggregate supply D. increase by exactly $50 billion because investment is a component of aggregate demand
Will the shift of SRAS to the right tend to make the equilibrium quantity and price level higher or lower? What about a shift of SRAS to the left?
If an inflationary gap exists, what will happen to business inventories? How will producers respond?
How does each of the following infrastructure items affect aggregate supply? courts and prisons.
Which of the following would increase aggregate demand? A) Increase in taxation. B) Increase in savings. C) Decrease in consumption spending. D) Increase in government spending.
Which of the following would not increase Aggregate Demand? a. Increased Consumption b. Increased Government Expenditure c. Increased Investment Expenditure d. Decrease in the overall price level
Several factors can cause the SRAS curve to shift; these factors include a change in the cost of inputs, a change in taxes, and even a change in seller expectations. a. True b. False
The federal government buys $20 million worth of computers from Dell. If the MPC is 0.60, what will be the impact on aggregate demand, other things being equal?
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.
The determinants of aggregate demand explain shifts in the aggregate demand curve. How does a change in investment spending affect aggregate demand? Asap
If the use of AI increases demand for computers, software, servers, then this is an increase in ___________ would which shift ____________. consumption, short-run aggregate supply up/left investment, AD to the right investment, short-run aggregate supply down/right investment, AD to the left A sustained rise in stock market prices creates _____________ which would shift __________. an increase in wealth, the AD curve to the right a higher government budget deficit, the AD curve to the left a decrease in wealth, the AD curve to the left an increase in capital productivity, the AD curve to the right
improvements in productivity shift the aggregate supply curve outward. true false