In our Aggregate Demand and Supply model, a decrease in Aggregate Demand would cause which of the following in the short run? Group of answer choices a) neither deflation nor inflation b) deflation and recessio
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- The recession of 2007-2009 was made worse by a global financial crisis. Show the effect of the Great Recession on the economy by shifting aggregate demand and/or aggregate supply curves as appropriate.Suppose an aggregate supply curve shifts right and this is the only change in the economy. What will certainly NOT happen? Group of answer choices: Higher output Lower output Lower price level Aggregate demand curve remains unchanged Which of the following helps to increase employment and decrease inflation? Group of answer choices: Right shift of an aggregate supply curve Right shift of the aggregate demand curve Left shift of the aggregate demand curve Left shift of an aggregate supply curveIf 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.
- The position of the long-run aggregate supply curve Group of answer choices: a. is determined by resource usage and technology. b. is at the point where the unemployment rate is zero. c. shifts to the right when the money supply increases. d. is at the point where the economy would cease to grow.All else equal, which of the following will result in a recession in the short run? Select all the answers that apply. Select one or more: A leftward/upward shift in the short run aggregate supply curve A rightward shift in the aggregate demand curve A leftward shift in the aggregate demand curve A rightward/downward shift in the short run aggregate supply curveChose one from Multiple choice. 3. Which of the following statements is true if there is an increase in aggregate demand while the economy is in equilibrium on a positively sloping short-run aggregate supply curve? a) Prices rise, national income does not change B) Prices decrease, national income does not change C) Prices go up and national income goes down. D) Prices decrease and national income decreases. E) Prices rise, national income rises
- 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.Suppose an aggregate supply curve shifts right and this is the only change in the economy. What will certainly NOT happen? Group of answer choices Lower output Lower price level Higher output Aggregate demand curve remains unchangedEurope and Asia both fall into deep economic recessions. What impact will this have on U.S. aggregate demand? OPTIONS: U.S. aggregate demand curve will shift to the right. U.S. aggregate demand will remain unchanged. None. A nation’s aggregate demand is only affected by its own economic conditions. U.S. aggregate demand will decrease.
- Which of the following helps to increase employment and decrease inflation? Group of answer choices: Right shift of an aggregate supply curve Left shift of an aggregate supply curve Right shift of the aggregate demand curve Left shift of the aggregate demand curveWhich of the following statements best describes the aggregate supply curve? A) The aggregate supply curve represents the relationship between the price level and the total output or real GDP in the macroeconomy. B) The aggregate supply curve represents the relationship between the inflation rate and the total output or real GDP in the macroeconomy. C) The aggregate supply curve represents the relationship between the inflation rate and the total demand or real GDP in the macroeconomy. D) The aggregate supply curve represents the relationship between the price level and the potential output or GDP in the macroeconomy.Starting with a short run and long run equilibrium, assume a war breaks out, then," a.government spending increases b.household consumption increases c.long run aggregate supply shifts rightward d.short run aggregate supply shifts rightward.
