technological change that permanently lowered energy costs would cause the: Group of answer choices AS curve to shift to the left. AS curve to shift to the right AD curve to shift to the left. AD curve to shift to the right
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A technological change that permanently lowered energy costs would cause the:
AS curve to shift to the right
AD curve to shift to the right.
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- The price level rises, and this changes the real value of consumers’ wealth. Does this cause a movement along the AD curve, or a shift to a new AD curve? A. A movement along the AD curve B. A shift to a new AD curve C. None of the AboveAccording to macroeconomic theory, a concurrent increase in AD and decrease in AS will cause __________. Group of answer choices deflation economic recession economic boom inflationAustria is one of the largest exporters of oil. At the end of 2019, the global price of oil fell substantially. For this question, treat oil as a final good, not an input into production. Begin at long-run equilibrium. this is all one question please answer everything! Now assume that the government did not intervene and instead allowed the economy to self-correct. As a result of the self-correction, AD ( increased,decreased,remained the same,changed ambiguously) SRAS ( increased,decreased,remained the same,changed ambiguously) LRAS ( increased,decreased,remained the same,changed ambiguously) GDP ( increased,decreased,remained the same,changed ambiguously)relative to before the crisis, unemployment relative to before the crisis, and the price level ( increased,decreased,remained the same,changed ambiguously)relative to before the crisis.( increased,decreased,remained the same,changed ambiguously)
- The labor force participation rate fell during the pandemic. This would shift the LRAS curve right shift the SRAS curve up/left shift the SRAS curve down/right shift the LRAS curve left As prices rise while wages are sticky, firms' profit per unit rises. This is an explanation for why rising prices shift SRAS curve to the left the SRAS curve is upward sloping the AD curve is downward sloping rising prices shift SRAS curve to the right When the economy is at a short-run equilibrium above full employment, what is happening in the labor market? unemployment is high and there will be downward pressure on wages unemployment is low and there will be downward pressure on wages unemployment is high and there will be upward pressure on wages unemployment is low and there will be upward pressure on wagesIn the long run, equilibrium output in the economy: Group of answer choices Will be less than potential output. Will exceed potential output. Will equal potential output. Will equal approximately 94 percent of potential output.In the short run, when output is smaller than aggregate expenditure, which of the following statements are correct? Planned investment is greater than actual investment Inventory levels are decreasing Actual GDP is less than the short-run equilibrium level of GDP a. 3 only b. 1, 2 and 3 c. 1 only d. 2 only e. 1 and 2 f. 1 and 3 g. 2 and 3
- Sample figure of AD curve has negative slopeQ.1 (B2. Shift of aggregate demand) For each of the following separate scenarios, discuss how it would affect AD, SRAS and LRAS. Stock prices keep rising. More tourists come to Seattle The number of workers increases. Firms expect price level to fall. Government spends more money on military Q.2 (D1. Equilibrium in the Aggregate demand-aggregate supply model) For each of the following separate scenarios, discuss what happens in short run and then long run. There is a severe drought reducing the farm yield. Consumers are more confident about the economy. There are more workers in the labor force. Due to stock market crash, the wealth of households drops The government depreciates its currency. Q.3 (D1. Equilibrium in the Aggregate demand-aggregate supply model) Suppose an event happens and the price level and real GDP change as shown in the following table: Before the event Short run Long run Real GDP (USD) 3.5 trillion 3.8 trillion 3.5 trillion Price level…Consider an AS AD diagram. What would happen in the model if Energy prices increased? Group of answer choices a. AD shifts right and prices increase while real GDP increases b. AS shifts left and prices increase while real GDP decreases c. AS shifts right and prices decrease while real GDP increases d. AD shifts left and prices decreases while real GDP decreases
- Several factors can cause the SRAS curve to shift; these factors include a change in the cost of inputs, a change in taxes, and even a change in seller expectations. a. True b. FalseIf output is less than planned aggregate expenditure, there will be Group of answer choices no change in inventories. an unplanned increase in inventories. an unplanned decrease in inventories. a planned increase in inventories.Identify which expenditure category each of the following will directly impact, and also which direction the U.S. aggregate demand curve will shift as a result.a. Incomes increase abroad.b. Interest rates decrease.c. Congress passes a permanent tax cut.d. Firms become more optimistic about the outlook for the economy.e. Stocks traded on the NASDAQ market lose 40 percent of their value in one month's time
