The aggregate supply shifts to the right if: Group of answer choices nominal wages increase. land rents decreases. supplies of resources decrease. private investment increases.
Q: A decrease in aggregate demand will cause: OPTIONS: aggregate supply to fall according to classical…
A: The classical economists believe that economy is at full employment level meaning AS curve is…
Q: If investment increases by $15 billion and the economy’s MPC is 0.8 the aggregate demand curve will…
A: Increase in investment= $15 billion MPC= 0.8 Multiplier=1(1-MPC) =1(1-0.8)…
Q: At very low price levels there is a low level of production. Since increases in price levels…
A: Production refers to the process of converting and assembling raw materials into finished goods that…
Q: A broad based increase in taxes will lead to A an increase in households' disposable income and will…
A: If the broad based taxes increase the disposable income of people will fall and they will be willing…
Q: QUESTION 10 A recession is a period during which aggregate output increases. True False
A: A recession refers to a period in which there is a consistent reduction in the aggregate output (Y)…
Q: An increase in the price of energy would a- shift the short-run aggregate supply down/right b-…
A: The aggregate supply curve shows the total quantity of output that firms will produce and sell at…
Q: What happens on the aggregate demand curve when there is a rise in the price level which causes a…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The economy is in a recession. The government enacts a policy to increase spending by $10 billion.…
A: Given: The government increases the spending by = $10 billion The MPS = 0.1 The aggregate supply…
Q: When the price level falls Answer households want to lend more, so the interest rate rises making…
A: When the price level falls, inflation also falls. Since the real rate of interest varies inversely…
Q: Aggregate demand shifts left if a. government purchases decrease and shifts left if stock prices…
A: Aggregate demand is the amount of sales which an entrepreneur actually expects from the sale of the…
Q: Multiple choice. 3. Which of the following statements is true if there is an increase in aggregate…
A: increase in aggregate demand while the economy is in equilibrium on a positively sloping short-run…
Q: Identify which expenditure category each of the following will directly impact, and also which…
A: Answer - Need to find- Identify which expenditure category each of the following will directly…
Q: An economist who claims that an increase in government spending would result mainly in a higher…
A: An increase in government spending would result mainly in a higher price level.
Q: Aggregate demand will shift to the right, if: Selected Answer: B. the aggregate price level…
A: Aggregate demand is the sum of current output demands by each of the economy's buying sectors. It…
Q: If actual GDP is less than potential GDP: Group of answer choices businesses are producing at…
A: When Aggregate demand and aggregate supply are equal , goods market is in equilibrium . And it…
Q: The US economy continued its robust recovery during the second quarter in 2021, allaying fears the…
A: Aggregate demand and aggregate supply model is given in macro economics for the equilibrium output ,…
Q: In the long run, the economy has gone through a full business cycle. at least five years have…
A: Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: The long-run aggregate supply (LRAS) curve is vertical because: Answers: A. The short-run…
A: The long-run aggregate supply curve depicts how the price level is related to the real GDP supplied…
Q: Total planned expenditure is also called ______. a. Exports minus imports b. Aggregate demand c.…
A: Since planned expenditure is pre planned by the government where they will going to spent, they…
Q: Aggregate demand (AD) is A,B,C, OR D A total spending, economy-wide, on durable goods and services.…
A: The aggregate demand refers to the total demand for all goods and services in an economy. It helps…
Q: The economy necessarily experiences a falling price level and rising employment when aggregate…
A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…
Q: Base on the aggregate demand-aggregate supply model, an increase in the stock market, which makes…
A: The aggregate demand and aggregate supply model helps to determine the price level and the real…
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…
Q: Pundits have stated that the recent tax cut mainly benefits companies. The benefit to companies can…
A: Lower tax rates increase the spending power of consumers and may increase aggregate demand,…
Q: he aggregate demand curve is directly derived from the expenditures schedule. True or False
A: An AD curve (aggregate demand ) states the whole spending on commodities and services at per level…
Q: he vertical axis of the aggregate demand and aggregate supply model measures the overall (OUTPUT,…
A: Demand is the desire, willingness, and ability of consumers to pay a specific price for a product or…
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: An increase in the price of a barrel of oil will shift the aggregate demand curve to the left and…
A: Increase or decrease in input costs affect aggregate supply curve.
Q: The economy is in a recession. The government enacts a policy to increase spending by $4 billion.…
A: The correct answer is given in the second step.
Q: The short-run aggregate supply curve will shift to the right. The aggregate demand curve will shift…
A: Aggregate demand (AD): - It is the total demand of goods and services in an economy at a particular…
Q: If investment decreases by $20 billion and the economy's MPC is .5, the aggregate demand curve will…
A: "Aggregate demand (Y) is the demand for all finished goods and services in the economy in a given…
Q: Full employment output is the level of output that firms in the economy supply when A- all capital…
A: Full employment output refers to the output level that results from the equilibrium in the labor…
Q: An increase in the price level causes the aggregate supply curve to shift to another supply…
A: Answer- False
Q: When disposable income increases, consumption expenditure decreases by the same amount. does not…
A: Disposable income (sometimes known as disposable personal income) is the amount of money available…
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: 1)Potential output is the same as long-run aggregate supply. Select one: True False
A: Hey, Thank you for the question. According to our policy, we can only answer 1 question per session.…
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: Using a correctly labelled aggregate supply and aggregate demand diagram, show the impact of a…
A: When private investment reduces, it can be due to the crowding-out effect that happens when the…
Q: Which of the following is true? A. Potential GDP decreases as the price level increases. B. At…
A: Aggregate supply refers to the entire amount of output that companies will create and sell—in other…
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: If the price level increases in the economy, A) The aggregate demand will fall and shift to the…
A: The price level is the average of current prices across all goods and services in an economy. The…
Q: The Aggregate Demand line slopes down for a few reasons, one of which is ... Group of answer choices…
A: Aggregate demand shows an inverse relationship between price level and real output. It slopes…
Q: When production in an economy grows more quickly than the population in that economy, which of the…
A: Note: Since you've asked multiple question, we will solve the first question for you. If you want…
Q: Unemployment would decrease and prices would increase if a. aggregate supply shifted left.…
A: Unemployment: Joblessness is a term alluding to employable people and looking for work yet can't get…
Q: Aggregate demand shifts right when the government
A: Aggregate demand curve shift right or left according to the changes in consumption, investment,…
Q: A vertical aggregate supply graph indicates that aggregate demand has no effect on: A) Prices B)…
A: Aggregate supply curve shows relationship between price and quantity of output supplied.
Q: Other things the same, when the price level rises more than expected, some firms will have
A: Price level refers to the current prices for services and goods produced in an economy.
Q: Which of the following would not shift the aggregate demand curve to the left? Group of answer…
A: The aggregate demand (AD) curve is a line exhibiting the relationship between total units demanded…
Q: If consumer confidence falls the impact upon the economy is _______________. A downturn. An…
A: The gross domestic product(GDP) of an economy is defined as the market value of all the final…
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- Which of the following would cause the aggregate supply curve to increase... Group of answer choices The government has reduced its spending by more than 10% over the last 2 years Throughout the economy, workers are using better equipment and output per hour is rising. Consumers are more confident and spending more than before. Energy prices such as gas and electricity have increased rapidly throughout the country.Aggregate demand shifts right when the government Group of answer choices increases infrastructure expenditures. decreases the money supply. removes an investment tax credit increases taxes.The aggregate demand curve slopes downward because Group of answer choices a lower domestic price level will induce more imports a lower interest rate will associate with a lower price level to increase the consumption on durable goods the law of demand works people are willing to purchase expensive goods when inflation occurs
- Chose one from Multiple 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 risesA sudden increase in consumer spending will shift the aggregate demand curve to the right and lower the price level/inflation and increase the level of GDP output. True /FalseAt very low price levels there is a low level of production. Since increases in price levels encourage producers to increase output the Aggregate Supply curve tends to be very__________________ until the factors of production become scarce.
- When aggregate supply curve shifts to the right because oil prices are decreasing, then: Group of answer choices unemployment decreases and inflation increases. unemployment and inflation decrease. unemployment and inflation increase. unemployment increases and inflation decreases.The aggregate supply curve is probably better thought of as a price/output response curve. Select one: True FalsePessimistic consumer and business confidence and decreased government spending are both associated with a rightward shift of the aggregate demand curve. a leftward shift of the aggregate demand curve. an upward movement along the aggregate demand curve. a downward movement along the aggregate demand curve.
- The long-run aggregate supply line will necessarily shift to the right when Group of answer choices 1. Consumers spend more on goods and services 2. Government spending increases 3. There is an advancement in technology and therefore potential outputThe aggregate supply shifts to the right if: A. supplies of resources increase. B. investment increases. C. wage rates increase. D. consumption increases.Suppose an aggregate supply curve shifts right and this is the only change in the economy. What will certainly NOT happen? Group of answer choices Lower output Lower price level Higher output Aggregate demand curve remains unchanged
