1 Supply shocks cause short-run aggregate supply (SRAS) toa) decrease in both the short run and the long run.b)return to its original position in the long run.c) increase in both the short run and the long run.d) remain unchanged in both the short run and the long run.e) decrease in the short run and increase in the long run.

Supply shocks are kind of unanticipated events which instantaneously causes the commodity to change…

Supply shocks cause short-run aggregate supply (SRAS) to a) decrease in both the short run and the long run. b) return to its original position in the long run. Oc) increase in both the short run and the long run. d) remain unchanged in both the short run and the long run.

Supply shocks cause short-run aggregate supply (SRAS) to a) decrease in both the short run and the long run. b) return to its original position in the long run. Oc) increase in both the short run and the long run. d) remain unchanged in both the short run and the long run.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 15QP

See similar textbooks

Related questions

Q: The annual commissions per salesperson employed by a retailer of mobile communication devices…

A: As the given data is Average = 43,400 Standard deviation = 5000 Percent of salesperson earn between…

Q: Discuss the Material Balance Model of the Economy and environment. Explain it in your words (do not…

A: This concept is from the environmental economics. This model is given by Ayres and Kneese and is…

Q: 1 shows a domestic market of a gadget. The horizontal axis shows the quantity unt) and the vertical…

A: The consumer surplus is the difference between the maximum price consumer wants to pay and actual…

Q: Alex uses wool (K) and labour (L) to produce t-shirts (q). The production function is: q = min{L/4,…

A: q = min{L/4, K0.8 }. Brian uses 1 kg of wool and 3 hours of labor to produce 1 t-shirt

Q: Why is trust important in EC transactions? 2- Discuss one of the limitations of m-commerce. What…

A: EC or e-commerce means buying or selling of goods and services over internet rather than physically.…

Q: Consider the following picture. c' A B E F C Suppose that the government changes government…

Q: What is the value of a perpetuity of P100 per year if the discount rate is 5%, 7%, 11%? Answer: P…

A: Given Information, Cash Payment (C) = P100 per year Case I: Interest Rate (r) = 5% = 0.05 Case II:…

Q: A Park charges $50 for students and $100 for everyone else. If the price elasticity of demand for…

A: Elasticity of demand is defined as type responsiveness of the quantity demand when price of the…

Q: A given level of consumer demand will support a large number of producers in an industry if Multiple…

A: Economies of scale means production of goods at large quantities which reduces the per unit cost .

Q: Based on 1337 data points, the following equation was estimated using OLS.From this fragment of data…

A: Given Estimated OLS equation: Ghat = 11.7+2.5W For 445th data point, value of W is 32. We have to…

Q: Subsidies are A. all of the other answers. B. rewards for those receiving a positive…

A: Subsidies are paid by the government to owners of goods and services for various reasons. Sometimes…

Q: Brian uses wool (K) and labour (L) to produce t-shirts (q). The production function is: q =…

Q: EXPLAIN THIS What's the relationship of Globalization in Culture? What are the contributions of the…

A: Globalization refers to the acceleration of people, commodities, and service movements and exchanges…

Q: Suppose that a lottery winner deposits $5 million in cash into her transactions account at the Bank…

A: Deposit done = $5 million Reserve requirement = 20% Initial deposit = $5 million

Q: In an island economy, farmers grow 150 potato, pay 25 in tax, eat 65, plant 60 in the yard. a.…

A: Given; Total number of potatoes= 150 potatoes Number of potatoes paid as tax= 25 potatoes Number of…

Q: Explain the difference between saving and investment as defined by a macroeconomist. c. Which of…

A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If…

Q: In the market for cable TV, the height of the consumer surplus triangle equals Select an answer and…

A: When talking about the consumer surplus, it is the amount of money that an individual is able to…

Q: (a) The reason firm's use non-linear pricing is to increase the firm's sales increase the firm's…

A: When talking about non-linear pricing strategy, it is the pricing strategy when firm do not set same…

Q: A firm’s production function is Q(L) = 15L2 – 0.1L3, where output (Q) is a function of a single…

A: (i)…

Q: For the following Demand calculate Total Revenue and Marginal Revenue as price falls and quantity…

A: Price (P) Quantity (Q) Total Revenue (TR) Marginal Revenue (MR) 40 4 160 - 35 5 175 15 30 6…

Q: Discuss the issues involved in the design of an optimal depletion policy for a significant petroleum…

A: Policies are collections of choices made in a certain order, and an optimal policy is one that…

Q: Explain how a person can be employed and still be living under the poverty threshold. Please help,…

A: Poverty is defined as a standard under which a person lacks basic means to get necessities of life.…

Q: Use the table to compute for the following: Point A C F Px($) 6. 5 4 2 1 Qx 20,000 40,000 60,000…

A: Dear learner you have posted multiple sub parts question, as per our policy we have solved only…

Q: The world today is facing several energy challenges that are of concern to economists and…

A: The energy crisis is the fear that the world's demands on the limited natural resources required to…

Q: You are considering purchasing a dump truck. The truck will cost $62,000 and have operating and…

A: Equivalent annual cost " it is the annual cost of owning, operating and maintaining an asset over…

Q: Explain monopoly theory, including cost functions. show on a graph what is deadweight loss.

A: There are various forms of market structures such as perfect competition, monopoly, oligopoly,…

Q: Economics The short-run equilibrium is the combination of r and Y that simultaneously satisfies the…

A: In an economy, the general equilibrium is explained by the situation when all the markets are…

Q: Use the following assumptions to answer all questions: • There are three countries – Argentina,…

A: Since the question you have posted consists of multiple parts, we will answer the first three…

Q: At a recent boat show, Nautica Bank was offering add-on interest installment boat loans for up to 5…

Q: B SRAS, A SRASO SRAS2 E AD Y Y 1. Assume that the economy starts at point A and there is a drought…

A: The number of goods and services supplied by the sellers in an economy is termed supply. There…

Q: 1. What is the profit maximizing level of production? ___ pairs per week. 2. What price does…

A: Profit maximization condition will be at MR = MC and at the equilibrium point MC curve needs to be…

Q: Penalty point in soccer. Column Defend left Defend right Kick left 50, -50 80, 80 Row Kick right 90,…

A: To find the pure strategy nash equilibrium, we use the best response method, where we underline the…

Q: Give an example of a government-created monopoly. Is the creation of this monopoly necessarily good…

A: * ANSWER :-

Q: What is a Strategic Issue? How might we go about identifying a strategic issue? Consider how an…

A: Strategic issues are the core policy decisions or important concerns that a community must solve in…

Q: The marginal cost function of a firm is defined by MC=25+30Q-9Q², if it's fixed cost is 55. Find the…

A: Given: The marginal cost is: MC = 25 + 30Q - 9Q2 The fixed cost is = 55 To Find: The total cost:

Q: Cost of a machinery is Rp 10 Billion and the economic life of the machinery is 20 year. Assuming the…

A: Cost of machine = 10 billion Interest rate = 12% Economic Life = 20 years We find the annual worth…

Q: Suppose that in 1994 the total output in a single-good economy was 10,000 buckets of chicken. Also…

A: Given, Price in the year 1994 $10/bucket of chicken Output in the year 1994 10,000 buckets of…

Q: The table below contains information about the production, costs and profits of a firm. The price…

A: Average fixed cost = Total fixed cost / Quantity of output.

Q: Which of the following countries receives the least return on its investment in health care?a.…

A: Meaning of Health Economics: Here, the term health economics refers to the scenario under which…

Q: Ella Co. uses a predetermined overhead rate based on direct labor-hours to apply manufacturing…

A: Given; Estimated manufacturing overhead cost= P300,000 Estimated activity level of direct labor…

Q: What's the difference between a structural and a passive budget deficit? What contributes to a…

A: A recession is characterized by a sharp drop in the country's economic activity. Instability in the…

Q: D7) Some economists argue that it is possible to raise the standard of living by reducing population…

Q: Brian uses wool (K) and labour (L) to produce t-shirts (q). The production function is: q =…

Q: DEAS men O the w y fo e i 11 gh trice ire a the eh The accompanying figure presents informatic…

A: Nash equilibrium represents the best strategy for a player by taking another player's strategy in…

Q: Which of the following highly industrialized countries does not have national health care…

A: National health care coverage means providing all the people with health coverage and in this…

Q: Jade draws a check on Biggo Bank "payable to the order of Alonzo Alorzo cleverly raises the check to…

A: According to the question, Jade draws a check on Biggo Bank "payable to the order of Alonzo." If…

Q: What is economics?

A: Scarcity: - it is a very basic problem of economics that is related to the limited availability of…

Q: Price elasticities of the demand for health care are usually much lower (in absolute terms) at the…

A: Price elasticity of demand shows the responsiveness of change in quantity demanded due to change in…

Q: How does the United States fare on quality of care?

A: Answer is given below

Q: Why did China tried to limit depreciation by using dollars to buy yuan? Why didn't it work?

A: The conversion of 1 country's currency into another is understood as foreign exchange. the worth of…

Question

Supply shocks cause short-run aggregate supply (SRAS) to
a) decrease in both the short run and the long run.
b)
return to its original position in the long run.
c) increase in both the short run and the long run.
d) remain unchanged in both the short run and the long run.
e) decrease in the short run and increase in the long run.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Use the model of aggregate demand and short run aggregate supply to explain how each of the following would affect real gdp and the price level in the short run. A. Reduction in nominal wages B. Major improvement in technology Reduction in net export
Most economists use the aggregate demand and aggregate supply model primarily to analyzea. short-run fluctuations in the economy.b. the effects of macroeconomic policy on the prices of individual goods.c. the long-run effects of international trade policies.d. productivity and economic growth.
The Aggregate Supply (AS) curve slopes upward to reflect the profit motive of businesses. So, why are there two versions of the AS curve( i.e. short run and long- run). Discuss
If the short-run aggregate supply shifts left: a) Price level rises and output falls b) Price level falls and output rises c) Price level falls and output falls d) Price level rises and output rises
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.
Which items describe long-run aggregate supply (LRAS), and which ones describe short-run aggregate supply (SRAS)? Long-Run Aggregate Supply The unemployment rate, u, may be above or below the natural rate. Unemployment is at the natural rate, u*. All prices can change. Short-Run Aggregate Supply + Only some prices can change. The economy's output may be above or below the full-employment level, Y*. The economy's output, Y, is at the full- employment level.
Why the slope of the aggregate supply curve differs in the short-run and in the long-run? Why the longrun aggregate supply curve is vertical and why the short-run supply curve is upward sloping? Explain indetail
In the sticky-price model, describe the aggregate supply curve in the following special cases. How do these cases compare to the short-run aggregate supply curve we discussed in Chapter 10? All firms have sticky prices (s = 1). The desired price does not depend on aggregate output (a = 0).
Which only affects short run aggregate supply? Choose all that apply. Group of answer choices Inflationary expectations Input prices Saving Technology Number of resources
Aggregate demand and aggregate supply, based on a problem from “Principles of Economics” by N. Gregory Mankiw a) List the components of country’s GDP in an open economy. For each component, provide an example of an event that would cause a shift of the aggregate demand curve to the right.b) What will be the effect of such events on the level of prices and the real outcome in the short run? Provide a graph.c) What will be the effect of such events on the level of prices and the real outcome in the longrun? Update your graph
Which of the following would be most likely to produce a rightward shift in the long run aggregate supply curve (LAS)? a) a decrease in the quantity of oil b) an increase in the quantity and skills of the labour force c) an increase in input prices d) a decrease in the productivity of land
Refer to the diagram. The initial aggregate demand curve is AD1 and the initial aggregate supply curve is AS1. Cost-push inflation in the short run is best represented as a: A) move from d directly to a. B) leftward shift of the aggregate supply curve from AS1 to AS2. C) move from d to b to a. D) rightward shift of the aggregate demand curve from AD1 to AD2.