An increase in technology will shift SRAS and LRAS simultaneously to the right. For a given (fixed) AD curve this will cause, Real GDP to rise and the GDP Deflator to fall Real wages and unemployment to rise The GDP Deflator and real GDP to fall Unemployment and the GDP Deflator to rise

AD curve depicts an inverse relation between the price level and the output .

Answered: increase in technology will shift SRAS…

increase in technology will shift SRAS and LRAS simultaneously to the right. For a given (fixed) AD curve this will cause,

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter10: Keynesian Macroeconomics And Economic Instability: A Critique Of The Self Regulating Economy

Section: Chapter Questions

Problem 20QP

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Question

An increase in technology will shift SRAS and LRAS simultaneously to the right. For a given (fixed) AD curve this will cause,

	Real GDP to rise and the GDP Deflator to fall
	Real wages and unemployment to rise
	The GDP Deflator and real GDP to fall
	Unemployment and the GDP Deflator to rise

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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