Stagflation is caused by a Group of answer choices rightward shift in the aggregate demand curve. rightward shift in the short-run aggregate supply curve. leftward shift in the short-run aggregate supply curve. leftward shift in the aggregate demand curve.
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- Stagflation is caused by aa. leftward shift in the aggregate-demand curve.b. rightward shift in the aggregate-demand curve.c. leftward shift in the aggregate-supply curve.d. rightward shift in the aggregate-supply curve.The vertical part of the Aggregate supply curve shows Select one: a) Perfectly inelastic supply b) Unitary elastic supply c) Elastic supply d) Elastic demand e) Perfectly inelastic demandMultiple 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
- Suppose that the United States is at full employment. Explain the effect of each of the following events on aggregate supply: Union wage settlements push the money wage rate up by 10 percent. The price level increases. Potential GDP increases Suppose that the United States is at full employment. Then the federal government cuts taxes, and all other influences on aggregate demand remain the same. Explain the effect of the tax cut on aggregate demand in the short run.A sudden crash in the stock market shifts a.the aggregate demand curve. b. the short-run aggregate supply curve, but not the long-run aggregate supply curve. c. the long-run aggregate supply curve, but not the short-run aggregate supply curve. d. both the short-run and the long-run aggregate supply curves.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.
- An increase in the price of an imported resource will cause, Group of answer choices: The aggregate supply curve to remain the same. The Aggregate supply curve to shift to the right The Aggregate supply curve to shift to the left a movement along the Aggregate supply curve The economy to operate in the long-runWhich of the following would shift aggregate demand to the right? 1) The value of the dollar increases. 2) There is a decline in consumer confidence. 3) Stock market values increase by 20%. 4) College graduates are having a difficult time finding jobs. 5) A fall in the price level increases the value of real wealth.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 curve
- Which of the following would shift the long-run aggregate supply curve to the right?a. a decrease in the rate of inflationb. an increase in the growth rate of spendingc. a severe drought that decreases crop production and as a result raises pricesd. the invention of a new computer chip that makes assembly production twice as fastThe effects of a higher than expected price level are shown by Answer shifting the short-run aggregate supply curve right. shifting the short-run aggregate supply curve left. moving to the right along a given aggregate supply curve. moving to the left along a given aggregate supply curve. Question 27 A decrease in the expected price level shifts Answer only the long-run aggregate supply curve right. only the short-run aggregate supply curve right. both the short-run and the long-run aggregate supply curve right. Neither the short-run nor the long-run aggregate supply curve right.Match the cause for the negatively sloped aggregate demand curve with the correct term. image has answer bank As prices rise, the cost for businesses to finance new equipment increases, causing a drop in quantity demanded of real GDP.The purchasing power of money held in savings accounts falls as prices rise.As prices rise in the United States, foreigners purchase fewer U.S. goods.
