Unemployment rates increase.

Principles of Economics, 7th Edition (MindTap Course List)
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Chapter33: Aggregate Demand And Aggregate Supply
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Question 14
How are the effects of an increase in the price level that is less than expected shown in the aggregate demand and
aggregate supply model?
by shifting the short-run aggregate-supply curve left
I by moving to the right along a given aggregate-supply curve
by moving to the left along a given aggregate-supply curve
I by shifting the short-run aggregate-supply curve right
During recessions, which of the following occurs ?
Incomes increase because workers have to work overtime.
Unemployment rates increase.
Firms produce less but invest more.
Firms have to increase production because of falling prices.
Suppose a stock market crash makes people feel less wealthy. What are the effects of this decrease in wealth?
a decrease in consumption, which shifts aggregate demand left
a decrease in consumption, which shifts aggregate supply left
an increase in consumption, which shifts aggregate demand right
an increase in consumption, which shifts aggregate supply right
Transcribed Image Text:Question 14 How are the effects of an increase in the price level that is less than expected shown in the aggregate demand and aggregate supply model? by shifting the short-run aggregate-supply curve left I by moving to the right along a given aggregate-supply curve by moving to the left along a given aggregate-supply curve I by shifting the short-run aggregate-supply curve right During recessions, which of the following occurs ? Incomes increase because workers have to work overtime. Unemployment rates increase. Firms produce less but invest more. Firms have to increase production because of falling prices. Suppose a stock market crash makes people feel less wealthy. What are the effects of this decrease in wealth? a decrease in consumption, which shifts aggregate demand left a decrease in consumption, which shifts aggregate supply left an increase in consumption, which shifts aggregate demand right an increase in consumption, which shifts aggregate supply right
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