Since an increase in inflation reduces planned spending and short-run equilibrium output: the aggregate demand curve is downward sloping. the short-run aggregate supply line is downward sloping. the aggregate demand curve is horizontal. the aggregate demand curve is upward sloping.

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A: Aggregate demand is defined as the total demand for all the final goods and services produced in an…

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A: The entire amount of money or sales profits that the seller expects to receive from the sale of…

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Q: Which of the following would cause the aggregate price level to fall and the equilibrium level of…

A: Both aggregate demand and supply will cause the change in price level and real GDP in the short run.…

Q: Assume that the United States economy is currently in a recession in a short-run equilibrium. Draw…

A: When the economy is in recession, real GDP is less than potential GDP.

Q: The aggregate supply curve (short run) is upward-sloping because ______

A: The Aggregate Supply Curve shows relationship between price level and total supply in the economy.…

Q: For the following economic change, first explain with words the short-run adjustments you would…

A:

Q: The long-run aggregate supply curve shifts right if   immigration from abroad increases. the capital…

A: The long-run aggregate supply curve shows the potential output of the economy in the long run. It…

Q: The effects of a higher than expected price level are shown by   shifting the short-run aggregate…

A: The prices that the firms expect to charge is called the expected price-level. Inflation can lead to…

Q: The aggregate demand curve shifts to the left by $50 million. Assuming that the aggregate supply…

A: These aggregate demand shifters include anything that will manipulate the levels of Consumption,…

Q: Suppose firms become very optimistic about future business conditions and invest heavily in new…

A: If firms become very optimistic about future business conditions and invest heavily in new capital…

Q: In a time of crisis where there is a pandemic, policymakers try to encourage economic activity by…

A: During pandemic situation , alomost every nation have been affected by the covid-19 and the…

Q: Which of the following would shift the long-run aggregate supply curve to the right?a. a decrease in…

A: The long-run aggregate supply curve represents the total amount of goods and services supplied in an…

Q: Chose one from Multiple choice. 3. Which of the following statements is true if there is an…

A: Aggregate demand: It is the sum total of the final value of all the goods and services that have…

Q: An increase in aggregate demand when the economy is operating at near full capacity is likely to…

A: In an economy, full capacity level of output is also known as potential Output level that can be…

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A: The demand comes from all the economic agents such as the households, firms as well as the…

Q: The effects of a higher than expected price level are shown by Answer shifting the short-run…

A: Short run It is a period during some of the factor prices(specially labor) remains fixed by an…

Q: The upward slope of the short-run aggregate supply curve is based on the assumption that:   1)…

A: When talking about aggregate demand and aggregate supply, the slope of thise curves depends upon…

Q: A breakthrough in solar energy research that halves the cost of electricity will have no effect on…

A: "Electricity act as an important input in the production process of all the commodities and…

Q: Which of the following would cause the aggregate supply curve to increase... A) Energy prices such…

A: Aggregate Supply curve is an upward sloping curve showing positive relationship between price level…

Q: QUESTION 4 Exhibit 5-2: The Aggregate Demand and Supply Diagram Long-Run Aggregate Supply P…

A: Unemployment: It is an economic situation where all those individuals who are willing and able to…

Q: Which of the following shifts the aggregate supply and the potential GDP curve to the left? a…

A: Aggregate supply: It is the summation of all the goods and services that are supplied for the…

Q: The effect of an increase in the price level on the aggregate-demand curve is represented by a   a.…

A: Answer to the question is as follows :

Q: In a time of crisis where there is a pandemic, policymakers try to encourage economic activity by…

A: The use of government spending and tax strategies to impact economic conditions, particularly…

Q: Which of the following both shift the aggregate demand curve to the right?               Group of…

A: Aggregate demand curve is a downward sloping curve indicating the negative relationship between the…

Q: The long-run aggregate supply curve is upward-sloping and becomes steeper at output levels above…

A: Aggregate supply represents the total goods and services that producers produce and sell in the…

Q: Match the cause for the negatively sloped aggregate demand curve with the correct term. image has…

A: The demand in the economy can comes from all the economic agents such as the households, firms as…

Q: The aggregate demand curve shows that at higher price levels the total quantity of output .demanded…

A: Aggregate demand refers to the total value of the goods and services that are demanded at a…

Q: Which of the following would shift the U.S. aggregate demand to the right? A world economic…

A: The components of aggregate demand are consumption spending, investment spending, government…

Q: The aggregate supply shifts to the right if: A. supplies of resources increase. B. investment…

A: The aggregate supply curve movements to one side as productivity increases or the cost of key…

Q: The aggregate supply curve is   a. relatively flat at low levels of output.   b. generally flatter…

A: Aggregate supply is the total volume of goods and services that are produced in the economy.

Q: If aggregate demand shifts right then in the short run                        Group of answer…

A: Firms increase (decrease) production if price level is higher (lower).

Q: The initial effect of a shift in the aggregate curve is a rise in both the price level and output *…

A: This can be explained with the graph given below.

Q: See below. These are true or false questions.  1). In the long-run, aggregate supply is a…

A: The curve that depicts various quantities of goods and services being supplied at various levels of…

Q: In March 2020, as the Covid-19 recession  hit the world, consumers became pessimistic about their…

A: The gross domestic product(GDP) is defined as the market value of all the final commodities(goods…

Q: improvements in productivity shift the aggregate supply curve outward. true false

A: The aggregate supply curve shows the total quantity of output real GDP that firms will produce and…

Q: Which of the following would cause a shift in the short run aggregate supply curve? A decrease in…

A: PLEASE FIND THE ANSWER BELOW.

Q: Determine whether each of the following would cause a shift of the aggregate demand curve, a shift…

A: When there is a change in price of the good, it causes movement along the demand or supply curve.…

Q: Which of the following will most likely cause a rightward shift in the aggregate supply curve? An…

A: The aggregate supply curve is the total of all the supply curves of the entire economy.

Q: Which of the following would be most likely to shift the long-run aggregate supply curve (LRAS) to…

A: Answer is 'an increase in labor productivity as the result of improved computer technology and…

Q: The position of the long-run aggregate supply curve Group of answer choices:   a. is determined by…

A: The long run aggregate supply curve is vertical, since there is no possibility of increasing output.…

Q: According to aggregate supply and aggregate demand analysis, what happens to P (price level) and Q…

A: Equilibrium in the market occurs at the intersection of aggregate demand and aggregate supply curves…

Q: 3.   Currently, there is world-wide shortage of computer microchips. Determine the effects on: a.…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Which of these will shift the short-run aggregate supply curve to the right? an increase in the…

A: Short run Aggregate supply curve is an upward sloping curve, depicting positive relation between…

Q: An increase in worker productivity/output per hour will shift the short run aggregate supply curve…

A: A higher level of productivity means workers can produce a greater quantity of output at every price…