Using the AD/AS model, what would be an explanation for observing an increased price level and a decreased real GDP? Group of answer choices wages have increased. productivity has increased. the money supply has increased. the money supply has decreased.
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Using the AD/AS model, what would be an explanation for observing an increased
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- Hayek says that markets will heal themselves and that government should not intervene. How does the AD-AS model reflect Hayeks idea that governments cannot increase real GDP beyond the level that the free market economy is able to produce?question 1: In Figure 1 , how does the AD-AS model reflect the idea that governments cannot increase real GDP beyond an economy’s equilibrium level that the free-market economy is able to produce? Explain your answer.Using the AD-AS model, which of the following statement better describe what has happened with the pandemic? a. The government discouraged people from engaging in economic activities, which shifted the AD curve left; meanwhile, the government forced the closure of most of the firms in the economy, which shifted the short-run AS curve left, leading to much lower production in the overall economy. b. The government discouraged people from engaging in economic activities, which shifted the AD curve left; meanwhile, the government forced the closure of most of the firms in the economy, which shifted the short-run AS curve left, leading to a lower natural rate of output in the overall economy. c. The government discouraged people from participating in economic activities, which shifted the AD curve right, causing a higher price level for the firm to produce more goods and services. Hence, the short-run aggregate supply shifts to the left, leading to much lower…
- Hayek says that markets will heal themselves and that government should not intervene. How does the AD-AS model reflect Hayek’s idea that governments cannot increase real GDP beyond the level that the free market economy is able to produce? Do you believe that the Hayek’s classical AD-AS model explain the factors that cause changes (shifts) in AS realistically? Why or why not?In a Keynesian economy, please show and explain how would reducing marginal tax rates affect income and price levels in the name of AD-AS model.Using the AD-LRAS model, which of the following causes the price level to decrease and real potential GDP to increase? A(n) Group of answer choices increase in household taxes. decrease in the labor-force participation rate. increase in productivity. decrease in interest rates.
- Using the AD-AS model, if consumers and business become more optimistic about the future direction of the economy and increase spending, then: a-long-run aggregate supply will decrease. b-aggregate demand will decrease. c-aggregate demand will increase. d-long-run aggregate supply will increase.Using the AD-AS framework, demonstrate the impacts of spending on infrastructure and a tax cut on output and inflation in the short- run.In the AD/AS model, what prevents the economy from achieving equilibrium at potential output?
- Using the AD-LRAS model, a decrease in capital accumulation and an increase in business taxes causes the Long-Run Aggregate Supply curve to ["", "", ""] and the Aggregate Demand curve to ["", "", ""] , respectively.Use the AD-AS model to explain the impact of a general increase in productivity on the general price level and the level of real production and income in the economyUsing the AD/AS model, what would be an explanation for observing an increased price level and a decreased real GDP? wages have increased. the money supply has decreased. productivity has increased. the money supply has increased.
