Price level (P) LRAS, LRAS₂ A C OLRAS2 to LRAS1. SRAS2 to SRAS1. SRAS1 to SRAS2. B Based on the graph, a positive supply shock is best represented by a movement from LRAS2 to LRAS and SRAS1 to SE S2. LRAS1 to LRAS2. SRAS₁ SRAS₂ AD₁ Real GDP (Y)
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- Consider a closed economy. In this economy, businesses spend a total of $5000 on purchases of machinery used to produce and adding to inventories. Households spend a total of $6000 on goods and services and a total of $4000 purchasing houses. Additionally, the government spends $3500 per year, $500 of which is spent on unemployment benefits. Calculate aggregate demand for this economy.A movement along the economy's AS curve could be caused by a change in technology. the price level, caused in turn by an AD shock. the wage rate. labour productivity. the cost of capitalmagine an economy in which nominal GDP grew between 2018 and 2019 and real GDP fell during that same time period. Which of the following answers might explain this? Question 30 options: A) both prices and national output increased between 2018 and 2019 B) both prices and national output fell between 2018 and 2019 C) prices in the economy increased while national output fell between 2018 and 2019 D) prices in the economy fell while national output increased between 2018 and 2019
- Following a demand-side recession, what happens to full employment GDP (C+I+G) after a few recessions and over-expansion? Why is this composition problematic for the long run?H10. the plot of national income and price represents aggregated supply true falseAggregate demand (AD) is A,B,C, OR D A total spending, economy-wide, on durable goods and services. B total spending, economy-wide, on domestic goods and services. C equal to C + I + G + (M - X). D total unplanned expenditure.
- How to construct a Ad, SRAS and LRAS curve for economy with.. full employment Economic boom A recessionOver a given year, nominal GDP increased by about 2.5%. Over that year, the GDP deflator decreased by about 4%. From this information (and using our Aggregate Supply and Demand framework for analysis), we infer that over this year, Group of answer choices a) real GDP increased, and we had a decrease in Aggregate Demand. b) real GDP decreased, and we had a decrease in Aggregate Supply. c) real GDP increased, and we had an increase in Aggregate Demand. d) real GDP increased, and we had an increase in Aggregate Supply. e) real GDP decreased, and we had an increase in Aggregate Demand.Aggregate demand is more likely to than aggregate supplyl in the short run a- bigger leakages b-national income c-domestic investment d- shift substantually
- Which of the following is correct?a. Real GDP is the variable most commonly used to measure short-run economic fluctuations. These fluctuations can be predicted with some accuracy.b. Real GDP is the variable most commonly used to measure short-run economic fluctuations. It is almost impossible to predict these fluctuations with much accuracy.c. Nominal GDP is the variable most commonly used to measure short-run economic fluctuations. These fluctuations can be predicted with some accuracy.d. Nominal GDP is the variable most commonly used to measure short-run economic fluctuations. It is almost impossible to predict these fluctuations with much accuracy.ggregate demand includes Answer the quantity of goods and services both the government and customers abroad want to buy. the quantity of goods and services neither the government nor customers abroad want to buy. the quantity of goods and service the government wants to buy, but not the quantity of goods and services customers abroad want to buy. the quantity of goods and services customers abroad want to buy, but not the quantity of goods and services the government wants to buy.Price level (GDP priceindex) Real GDP demanded Real GDP supplied (trillions of 2005 yen) 75 600 400 105 450 550 135 300 700 The short-run macroeconomic equilibrium real GDP is ¥------ trillion and the equilibrium price level is ------. The size of the (recessionary , or inflamatory) gap is ¥-------- trillion.
