If policymakers decrease aggregate demand, then in the short run the price level falls and unemployment rises. and unemployment fall. and unemployment rise. rises and unemployment falls.
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If policymakers decrease aggregate
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and unemployment fall.
and unemployment rise.
rises and unemployment falls.
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- If policymakers decrease aggregate demand, then in the short run the price level Answer falls and unemployment rises. and unemployment fall. and unemployment rise. rises and unemployment falls.Unemployment would decrease and prices would increase if a. aggregate supply shifted left. b. aggregate demand shifted right. c. aggregate supply shifted right. d. aggregate demand shifted left.What happens when the minimum wage increases, in the short run? Select one: a. Aggregate demand shifts left, the price level falls, and real output falls b. Aggregate supply shifts down, the price level falls, and real output increases c. Aggregate supply shifts up, the price level rises, and real output decreases d. Aggregate demand shifts right, the price level rises, and real output rises
- The third box is the same as the first box(increase or decrease). The fourth box is the same as the second box(demand or supply).Which of the following is likely to occur if an increase in legal immigrants significantly reduces the wages of workers, ceteris paribus? A. Aggregate supply will decrease (shift left). B. Aggregate supply will increase (shift right). C. Aggregate demand will increase (shift right). D. Aggregate demand will decrease (shift left).At the point of full employment Select One: a) Production can be increased with a fall in prices b) Aggregate demand will no longer increase c) Production can be increased with increased prices only d) The producers get maximum profit e) Aggregate demand continues to fall
- When production costs rise, in the short run: When production costs rise, in the short run: A. the aggregate-supply curve shifts down to the right B. the aggregate-demand curve shifts down to the left C. the aggregate-demand curve shifts up to the right D. the aggregate-supply curve shifts up to the left E. both the aggregate-demand curve and the aggregate-supply curve shift to the leftFrom 2006 to 2008 there was a dramatic fall in the price of houses. If this fall made people feel less wealthy, then it would have shifted a. aggregate demand left. b. aggregate demand right. c. aggregate supply left. d. aggregate supply right.Suppose that the U.S. economy is at full employment when strong economic growth in Asia increases the demand for U.S.-produced goods and services. How the U.S. price level and real GDP will change in the short run?
- In the short run, the quantity of output supplied by firms can deviate from the natural level of output if the actual price level deviates from the expected price level in the economy. A number of theories explain reasons why this might happen. For example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. Consider a soybean farmer who expects a price level of 100 in the coming year. If the actual price level turns out to be 90, soybean prices will (decrease/not change/increase) , and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by (raising/lowering) the quantity of soybeans supplied. If other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to (fall short of/exceed) the…At a price level of 105, firms are unable to _______. A. meet the demand for their output, so they increase production and raise prices B. sell their output, so they cut production and aggregate supply decreases C. meet the demand for their output, so they increase production and aggregate supply increases D. sell their output, so they cut production and lower pricesPlease select all potential causes of a rightward supply curve shift (check all that apply) sellers expect the price to be higher in the future consumer income increases there is a cost-saving improvement in technology the price increases