I need help with the following ques KThe economy's AS curve will shift upward in the short run if there is:O A. an improvement in technology.OB. a decrease in the cost of capital.C. a decrease in the wage rate.OD. a decrease in labour productivity.OE. a decrease in the price level.*** KThe economy's AS curve will shift upward in the short run if there is:O A. an improvement in technology.OB. a decrease in the cost of capital.C. a decrease in the wage rate.OD. a decrease in labour productivity.OE. a decrease in the price level.***

Aggregate demand is the sum of consumption, investment, government spending and net export. At…

The economy's AS curve will shift upward in the short run if there is: OA. an improvement in technology. OB. a decrease in the cost of capital. OC. a decrease in the wage rate. OD. a decrease in labour productivity. E. a decrease in the price level.

The economy's AS curve will shift upward in the short run if there is: OA. an improvement in technology. OB. a decrease in the cost of capital. OC. a decrease in the wage rate. OD. a decrease in labour productivity. E. a decrease in the price level.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 5CQQ

See similar textbooks

Related questions

Q: 17 The graph below depicts an economy where a decline in aggregate demand has caused a recession.…

A: Given information: Initial long-run equilibrium occurs at the intersection point of LRAS, AS, and…

Q: Sheila runs an ice cream stand in a monopolistically competitive market. The figure below displays…

A: In monopolistic competition, There exists a large no. of sellers selling differentiated products.…

Q: Scale economies are said to be present when

A: The average cost curve determines the average cost of producing a given level of output. The…

Q: Question 11 Use spreadsheet functions to display the numerical value. FV(10%,7, ,5000) = ?

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: 4. Consider below the system of equations for the demand (QD) for and supply (Qs) of piano lessons…

A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: The owner of a movie theater company used multiple regression analysis to predict gross revenue…

A: Estimated Equation : ŷ = 83.7 + 2.23x1 + 1.60x2 Dependent Variable : Gross Revenue (y) Independent…

Q: 10; P2 change. = Cobb-Douglas: u(x₁, x₂) = x1.5x2.5; mo = 200; p₁ = 20; p₁ = 8. Solve for the CV and…

A: Compensating Variation (CV) is a measure of the change in a consumer's welfare due to a change in…

Q: the reduction in supply. However, this may lead to inflation if the increased demand leads to higher…

A: Monetary policy refers to the use of interest rates and other monetary tools by the central bank to…

Q: True or false question: If you co-sign for a loan you are responsible if the other doesn’t pay?

A: Co-signer liability refers to the legal obligation of co-signer to repay the debt if the primary…

Q: True or false question: Credit Card companies make the most money when you pay them back right away?

A: The bank or credit union that issues the credit card and extends the loan for the money used in a…

Q: An individual is consuming two goods, good x and good y. His utility function is given as Perfect…

Q: Consider a duopoly with a leader (called L) and a follower (called F). The market demand is given…

A: Duopoly is a market structure in which there are only two firms that dominate the market for a…

Q: Which of the following do economists not generally regard as a legitimate reason for the government…

A: Classical economists contend the role of government should be small and on second thought the…

Q: The figure on the right shows the demand schedule for a product produced by a single-price…

A: Single-Price Monopolist: A single-price monopolist will always sell its goods at the same price to…

Q: Use an AD/AS graph to show the macroeconomy of Chicagoland. Label the graph correctly

A: The equilibrium in the economy is determined by the intersection of the Aggregate Demand and the…

Q: relationship between risk and return

A: There is a positive relationship exists between risk and return associated with investing. An…

Q: Which of the following is the formula for the intra-industry trade (IIT) share in a product's total…

A: Intra-industry trade (IIT) refers to the trade of similar items that are part of the same industry…

Q: Discuss the contributions of Burton G. Malkiel to capital market efficiency

A: The concept of capital market efficiency holds that financial markets accurately represent all…

Q: Which of the following will not cause a change in aggregate demand? A. an increase in consumer…

A: In macroeconomics, AD or domestic final demand is the total demand for final products and services…

Q: Monopolistic competition means that

A: A market is a place where sellers and buyers meet to sell and buy goods and services. In economics,…

Q: If the GDP deflator rose from 106.2 in 1998 to 112.3 in 2000, what was the rate of inflation?

A: Nominal GDP is the measure of GDP in current year price. Real GDP is the measure of GDP in base…

Q: It costs a cookie firm $2 to sell a single cookie. This firm makes $4 in revenue from each cookie it…

A: Cost price per cookie = $2 Revenue earned per cookie = $4 Total quantity of cookies sold = 20

Q: Suppose that the local government of Santa Fe decides to institute a tax on seltzer producers.…

A: Tax revenue is the product of quantity sold and tax per unit. The effect of tax on consumer and…

Q: How does the minimum wage affect the price and quantity of goods

A: The minimal amount of compensation that an employer is obliged to pay wage workers for the work done…

Q: Discuss the contribution of Alfred Cowles, 3rd., (1891 - 1984) to capital market efficiency

A: The degree to which prices of financial assets in a market accurately represent all information that…

Q: Consider a market that is perfectly competitive and has no externalities. Which, if any, of these…

A: Many people imagine free markets as having minimal to no government influence. Governments really…

Q: Discouraged workers a. are part of the labor force b. are part of frictional unemployment c. are…

A: Discouraged workers are those workers who want to work but not looking for a job. Due to being…

Q: Consider a Duopoly model, in which two firms decide a quantity sequentially. For the convenience,…

A: The Stackelberg model is a type of duopoly in which one firm, called the leader, sets its output…

Q: What are the two main reasons why prices of goods increase?

A: The quantity of money, products, or services required to acquire a good or service is referred to as…

Q: Caroline is getting ready to do her taxes. She is single and lives in San Francisco. Caroline earned…

A: Federal Income tax: Federal income tax is a tax on income and is imposed by the United State federal…

Q: A rational consumer has a utility function that follows all of the characteristics explained in…

A: Utility function : U = 6x11/3y2/3 Price of x = 20 Price of y = 6 Income = 400 Therefore , Budget…

Q: If a country removes a tariff on imported shoes, we expect the domestic price of shoes to and the…

A: Many of the nation engage in trade protection with an imposition of the tariffs or quotas for at…

Q: 6. Automatic stabilizers Which of the following are examples of automatic stabilizers? Check all…

A: Introduction Automatic stabilisers are a particular kind of fiscal policy intended to balance out…

Q: ou are building guest huts at a holiday resort, and you need to choose whether to build your huts…

A: The monetary value of an asset falls over time due to use, wear, and tear, or obsolescence of the…

Q: Calculating the price elasticity of supply Antonio is a retired teacher living in San Diego who…

A: Price elasticity depicts the responsiveness of the quantity of a product or service demanded (Qd) or…

Q: If Mexico wants to maintain a fixed exchange rate of 1 peso per euro, it should euros in the foreign…

A: Foreign exchange market is an institution for the exchange of one country's currency with that of…

Q: Find Future value of the following Cash Flow and Plot the Yearly End balance if the interest rate is…

A: The future value of a cash flow refers to its value at a later point in time in accordance with its…

Q: True or false question: Making minimum payment will result in paying off your cards eventually?

A: Credit cards are a type of payment card that allows the holder to borrow funds from a financial…

Q: Consider a Duopoly model, in which two firms decide a quantity simultaneously. The market demand is…

A: Cournot equilibrium is a concept in economics that describes a situation in which two or more firms…

Q: Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run…

A: In monopoly there exists only one firm producing unique good. In perfectly competitive market there…

Q: The funded ratio of the public pensions in Texas compares favorably with those of most other U.S.…

A: When a person retires from employment or reaches a specific age, a pension is a retirement plan that…

Q: Andrew's utility function is U(x₁,x₂)=xx₂. Every week he has 5 units of good 1 and 15 units of good…

A: Utility function is U= x1x2 Endowment: x1 = 5 units ; x2 = 15 units Prices: p1 = 1 ; p2 = 1 Price…

Q: a competitive firm can sell any amoun if the firm set a price equal to the market price

A: The market price in a perfectly competitive market is determined by the intersection of the market…

Q: Why is the supply curve upward sloping? Group of answer choices It isn't. it is downward sloping. -A…

A: The supply curve is the curve between quantity supplied and price and it represents the relationship…

Q: Which of the following is true of intra-industry trade? Multiple Choice Intra-Industry trade is…

A: Trade refers to the exchange of goods, services, or capital between countries or regions.…

Q: Pick a good and explain how asymmetric or imperfect information could impact the price and…

A: Asymmetric information: The situation where the buyers and sellers of a product do not possess…

Q: 9 To increase the money supply, the Fed could: a) increase the reserve requirement ratio b) sell…

A: The entire amount of money that is in circulation in an economy at any particular time is referred…

Q: Consider a Duopoly model, in which two firms decide a quantity simultaneously. The market demand is…

A: Equilibrium is where the demand curve intersects the supply curve. Profit is maximized where the…

Q: 4. Money market instruments: Repurchase agreements Which of the following are typical repurchase…

A: A repurchase agreement, which is categorized as a money-market instrument, operates as a short-term,…

Q: Discuss the milestones of capital market effeciency from 1970 to date

A: The Efficient market Hypothesis (EMH) is a theory in finance that suggests that financial markets…

Question

I need help with the following ques

K
The economy's AS curve will shift upward in the short run if there is:
O A. an improvement in technology.
OB. a decrease in the cost of capital.
C. a decrease in the wage rate.
OD. a decrease in labour productivity.
OE. a decrease in the price level.
***

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

Suppose that an economy’s production function is Cobb–Douglas with parameter = 0.3 a. What fractions of income do capital and labor receive? b. Suppose that immigration increases the labor force by 10 percent. What happens to total output (in percent)? The rental price of capital? The real wage? c. Suppose that a gift of capital from abroad raises the capital stock by 10 percent. What happens to total output (in percent)? The rental price of capital? The real wage ?
economic Suppose that an economy’s production function is Cobb–Douglas with parameter a=0.3. a. What fractions of income do capital and labor receive? b. Suppose that immigration increases the labor force by 10 percent.What happens to total output (in percent)? The rental price of capital? The real wage? c. Suppose that a gift of capital from abroad raises the capital stock by 10 percent.What happens to total output (in percent)? The rental price of capital? The real wage? d. Suppose that a technological advance raises the value of the parameter A by 10 percent. What happens to total output (in percent)? The rental price of capital? The real wage?
Draw the ASAD graph in long run equilibrium (see an example in your textbook Figure 13.11) Label all the following: Solow Curve M+v C + I +G + NX Inflation rate Real growth A, K eL
Assume this economy is currently producing full-employment real GDP of B at a current price level of E. What would happen in the short run if wages increase?
Show and explain the AS adjustment process, in other words, how output adjusts over time, from the short run to the long run (following the increase in G)
Q3: Consider a baseline long run equilibrium where output is 22 trillion dollars, and the price level is 100. Note: In the Long Run Steady State Equilibrium, Price expectation is the same as price level & unemployment is 5% or lower. None of these are guaranteed in the short run. Usually, short run equilibrium is called an underemployment equilibrium.• Starting from the baseline, suppose COVID 19 hits this economy. If this disease only makes workers sick (everything else remaining constant) can you show how would the short run steady state equilibrium will be disrupted? A Keynesian Macroeconomist proposes the use of a massive expansionary fiscal policy. Would you agree, disagree?• You should answer each step in the following answer 3 table. Q4: Continuing from Question 3: What will be the shape of the Phillips Curve because of the Keynesian Colleague's massive expansionary fiscal policy (from Question 3)? Why? Please explain in detail.•You should answer each step in the following…
Most economists believe that classicalmacroeconomic theorya. is valid only in the long run.b. is valid only in the short run.c. is always valid.d. is never valid.
/Consider a baseline long run equilibrium where output is 22 trillion dollars, and the price level is 100. Note: In the Long Run Steady State Equilibrium, Price expectation is the same as price level & unemployment is 5% or lower. None of these are guaranteed in the short run. Usually, short run equilibrium is called an underemployment equilibrium.Starting from the baseline, suppose COVID 19 hits this economy. If this disease only makes workers sick (everything else remaining constant) this is a Continuing from Question 3, and Question 3 had been answered in Answer 3 table. You should answer in table Anwser4 with following steps
If the economy goes into a recessionary gap, a.) How will the change in wages affect short run AS and why?b.) As short run AS adjusts, what will happen to price level P and spending for output AD?c.) When will the adjustments in the labor market, wages, and AS stop and why?
4Consider a baseline long run equilibrium where output is 22 trillion dollars, and the price level is 100. Note: In the Long Run Steady State Equilibrium, Price expectation is the same as price level & unemployment is 5% or lower. None of these are guaranteed in the short run. Usually, short run equilibrium is called an underemployment equilibrium.Starting from the baseline, suppose COVID 19 hits this economy. If this disease only makes workers sick (everything else remaining constant) A Keynesian Macroeconomist proposes the use of a massive expansionary fiscal policy. Step 1) What will be the shape of the Phillips Curve (Upward / Downward/ Vertical/Horizontal). I want you to think about what variable is measured on the horizontal axis of the Phillips Curve Graph and what variable is measured in the Phillips Curve Vertical axis. Then tell us what it means to say that Phillips Curve is upward or downward sloping or vertical or horizontal Step 2) why did this policy create a…
Give typing answer with explanation and conclusion Suppose the real GDP of an economy is $500 billion dollars and its unemployment rate is 6%. If the natural rate of unemployment is estimated at 4%, what is the value of the country’s potential GDP (LAS) in billions of dollars? Value of the country’s potential GDP (LAS) is $ billion.
Suppose that a country experiences a reduction in productivity--that is, an adverse shock to the production function. (This example should sound familiar!)a. What happens to the labor demand curve?b. How would this change in productivity affect the labor market--that is, employment, unemployment, and real wages--if the labor market was always in equilibrium?c. How would this change in productivity affect the labor market if unions prevented real wages from falling?