Suppose that an economy wants to boost available labor hours in order to increase aggregate supply. What is the best way to accomplish this?

Q: Why unemployment results when Aggregate Demand is lesser than Aggregate Supply in the economy?

A: Aggregate demand refers to the total demand for the finished goods and services in an economy—the…

Q: What impact would a change that shifts an economy's production possibilities curve outward have on…

A: The production possibility curve represents the locus of combinations of two commodities that a…

Q: Great Depression. Suppose President Roosevelt's government had not launched the "New Deal" to help…

A: *Answer: Let us assume that initially economy is at E, Jevel. OYF is the level. of full-employment…

Q: Describe what happens when firms and workers underestimate future prices in the economy. Focus your…

A: An economy consist of households and business working in a circular flow in order to achieve their…

Q: How was the aggregate supply curve different from the supply curve for single good like pizza?

A: Aggregate supply curve shows the response of the aggregate supply to the fluctuations in the price…

Q: What happens to the output and price level if aggregate demand and aggregate supply curves shift in…

A: The aggregate demand and aggregate supply curve is a model that shows what decides total supply or…

Q: In your view, is the economy currently operating in the Keynesian, intermediate or neoclassical…

A: From the Keynesian point of view, the aggregate demand is not equal to aggregate supply due to…

Q: The GDP that an economy should produce, given its existing levels of structural variables like…

A: Aggregate supply is the aggregate level of production at each level of prices in an economy.…

Q: Explain  the factors that cause the Aggregate Demand curve to be downward sloping left to right.

A: The meaning of downward sloping demand curve is that when the price falls the aggregate demand…

Q: According to a neoclassical perspective, in the long run, a surge in aggregate demand will most…

A: Equilibrium in the goods and services market occurs at the intersection of aggregate demand and…

Q: What would happen to short- and long-run aggregate supply if unusually good weather led to bumper…

A: To determine the impacts on the short run aggregate supply and the long run aggregate supply if…

Q: Which would most likely increase aggregate supply?  An increase in the prices of imported products…

A: The aggregate supply curve is the total supply of goods and services in an economy that is willing…

Q: Which of the following shifts aggregate supply to the right?   a. a decline in the price of…

A: The model of AD-AS describes the factors that determine the total demand and total supply in the…

Q: How have improvements in computer technology affected production possibilities and the long run…

A: Due to improvement in computer technology,production increases along with efficiency to a greater…

Q: Why can't an economy generate its own aggregate demand when needed?

A: A system for creating, distributing, and consuming goods is referred to as an economy. The producers…

Q: True or False, the aggregate supply curve is a probably thought of as a price/output response curve

A: Aggregate supply refers to the total value of goods and services available for purchase at a…

Q: Which of the following would shift the aggregate demand curve to the left?

A: Change in consumption, investment, government expenditure and net export will cause shifts in…

Q: Which of the following policies does not shift the aggregate supply curve to the right?

A: (1) The aggregate supply (AS) curve depicts the total supply of goods and services at each price…

Q: What are three factors that help explain the slope of the aggregate demand curve? What is the most…

A: The slope of the Aggregate Demand curve is downward sloping. The three reasons include: 1-Pigou…

Q: what impact would a change that shift an economys production possibilities curve outward have on the…

A: Outward production possibility curve would increase efficiency.

Q: Like the supply curve for individual goods and services, the aggregate supply curve slopes upward…

A: Meaning of Supply: The term supply refers to the situation where the seller sells his products at…

Q: True or False? Looking along the aggregate demand curve, deflation will lead to a lower level of…

A: Aggregate demand shows inverse relationship between price and real GDP. It means decrease in price…

Q: An increase in the price level causes the aggregate supply curve to shift to another supply…

A: Answer- False

Q: What happens when firms and workers underestimate future prices in the economy? Explain the answer…

A: Expectation about future price and actual price is plays a significant role in the growth of…

Q: Which of the following is likely to occur if an increase in legal immigrants significantly reduces…

A: Answer: B. Aggregate supply will increase (shift right) Explanation: If an increase in legal…

Q: Using a well-labelled diagram, explain what happens to Aggregate demand of a country like Kenya when…

A: When price of petroleum products increases,aggregate demand would decrease.

Q: Changes in what four variables will shift the long run aggregate supply curve?

A: (Q) Changes in what four variables will shift the long run aggregate supply curve?

Q: Are there many short-run aggregate supply curves and long-run aggregate supply curves? Why or Why…

A: The short run aggregate supply curves would be an upward sloping line which shows the increase in…

Q: What effects would  increase in aggregate supply have on price levels and GDP?

A: In economics, the aggregate supply level is a concept which measures the level of total output or…

Q: If households decide to save a larger portion of their income, what effect would this have on the…

A: If the household decides to save a large proportion of their income then they will spend less on…

Q: (Changes in Aggregate Supply) List three factors that can change the economy’s potential output.…

A: A market is a place where the buyers and the sellers interact with each other and the exchange of…

Q: The Great Depression, according to John Maynard Keynes, was caused by people hoarding cash under…

A: A prolonged, long-term decline in economic activity in one or more economies is referred to as an…

Q: If the economy’s labor force is increasing and also becoming more productive, what will happen to…

A: The whole supply of goods and services produced within an economy at a certain overall price in a…

Q: Which range of aggregate supply would represent an economy where prices are rising as output…

A: According to the classical economics, aggregate supply curve is the curve that represents total…

Q: What factors shift the short-run aggregate supply curve?Do any of these factors shift the long-run…

A: Aggregate supply refers to the total supply of services and goods that is planned to be supplied in…