Why do we measure short-run output Y~in percentage terms rather than in dollar terms?

Q: In year 2007, what was short-run output? Pick the closest value. 30% of current nominal GDP 30% of…

A: Potential GDP refers to the full employment level of GDP. In other words, it is the country’s…

Q: An increase in the money supply will cause an increase in which of the following variables in the…

A: An expansion in the supply of money normally brings down loan fees, which thusly, generates greater…

Q: For an increase in output, average costs change by more in the short-run than in the long-run, but…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: Ghana’s economy is operating at long-run equilibrium. Analyse the short-run impact of an adverse…

A: Suppose if Ghana’s economy is operating at long-run equilibrium where LRAS, AS and AD1 curve…

Q: For Shock H: Suppose the economy starts in the long run equilibrium. Illustrate changes that the…

A: The long run equilibrium is achieved where long run aggregate supply curve (LRAS), short run…

Q: te te fgue belew to e de tiloning quention Figure 101 LRAS SRAS AD AD Real GDP a) At which point in…

A: Real GDP: - it is the inflation-adjusted value of all final goods and services produced in any…

Q: Consider an Economy in its medium run equilibrium. Now suppose that the government passes a stricter…

A: LM curve shows the positive relationship between interest rate and output. It means as the interest…

Q: If the cyclical unemployment rate is 1.31% and the economy is producing at 92% of potential output,…

A: The Okun's law tries to explain the impact of a percentage change in unemployment rate over the…

Q: Does it make sense that wages would be sticky downwards but not upwards? Why or why not?

A: Sticky wage is a concept of the labor market where the wages are set to a downward trend so that the…

Q: During a recession, couldn't firms reduce their labor costs by the same, or possibly more, if they…

A: Huge downturn in an economy is referred to be as recession In recession, the organizations attempt…

Q: The usual analytical method in macroeconomics is to begin in long-run equilibrium, shock the…

A: The short-run is the period where at least one factor of production is fixed and cannot changed,…

Q: How would an increase in productivity as a result ofa technological change affect the short-run…

A: Technological change will leads to change  in short run aggregate supply.

Q: Using the AD-AS, AE, MD-MS and PC pdels, show an economy at full nployment, with: natural rate of…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: If the economy is in long-run equilibrium and faces a positive demand shock output will output is…

A: The unexpected change in the aggregate demand is known as the demand shock. Aggregate demand curve…

Q: If the long run aggregate supply curve shifts, does the short run aggregate supply curve also have…

A: The short run aggregate supply slopes upwards while the long run supply curve is vertical. The long…

Q: A pandemic causes households to stay home all the time; as a result, they reduce their consumption…

A: (Since you have a posted a question with multiple sub-parts, we will solve the first sub-part for…

Q: Which of the following is most commonly used to monitor short-run changes in economic activity?a.…

A: The real GDP is the inflation adjusted value of goods and services produced in a country during a…

Q: The Canadian government increases its expenditure on goods and services in a time of war or…

A: The measure that depicts the final value of goods and services within an economy during a specified…

Q: If the economy goes into a recessionary gap,  a.) How will the change in wages affect short run AS…

A: A Recessionary Gap is defined as a gap which occurs when the real GDP of an economy is lower than…

Q: 68. Suppose that the Government of Canada mandates vaccines for all workers, ar that 5% of workers…

A: We have to find given question answer.

Q: why the aggregate supply curve slopes upward word in the short run

A: Aggregate supply curve is nothing but a a graphical representation of the relationship between the…

Q: leien LRAS SAS - 2 28 XA Real GOP pwth e 10. Beginning at point A in Figure 4, a negative money…

A: Beginning at Point A in Figure 4, a negative money shock could result in a short-run growth rate of…

Q: Do you consider the impact of the COVID 19 situation on the economy to be a demand shock or a supply…

A: Demand and supply shock are the shocks that increase and decrease the demand and supply in the…

Q: Classify each of the following as a supply shock or ademand shock. Use a graph to show the effects…

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only first three…

Q: Suppose that the productivity of labor increased. Predict what would happen to the equilibrium real…

A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Consider the open economy displayed in the figure to the right. Firms in this nation do import raw…

A: When Price of imported raw material increases the short run supply curve shift to the left.

Q: Drought in South Africa destroyed farm crops and drive up theprice of food. What is the effect on…

A: The destruction of crops means the availability or the supply of food will fall so there will be a…

Q: Suppose that government expenditures decrease by 12 from 20 to 8. Fill out column (3) of the Table.…

A: The aggregate demand is the locus of all points which shows the aggregate demand for all goods and…

Q: mand. In the AS-AD model, after the initial change in output, the adjustment to the new long run…

A: In the long run, in macroeconomics all the prices and wages are flexible. The AS curve is vertical…

Q: Is fiscal policy, say an increase in government expenditures (G), effective according to the Real…

A: Real Business Cycle Theory states that business cycle phases recession, depression, recovery are…

Q: Is there a connection between the concepts of Long Run Aggregate Supply and the Natural Rate of…

A:

Q: In the long- run, the level of output is independent of the price level * O True False

A: Output refers to the quantity of goods and services produced by an individual, firm, or country in a…

Q: Oil price shocks have an evident impact on the short run aggregrate supply curve. With the help of a…

A: SRAS refers to short-run aggregate supply. SRAS curve is an upward sloping curve.

Q: Why does the short-run aggregate supply curve slope upward to the right? If the prices of both (a)…

A: Aggregate supply is the total amount of services and commodities that firms in an economic plan to…

Q: explain the economic meaning of the HR business cycle based on the give-to-get economic duality?

A: The cyclical movement of an economy as it swings from growth to recession and again is known as an…

Q: Question 01…

A:

Q: Suppose that the economy is at long-run equilibrium. If there is a sharp decline in the stock market…

A: Financially, those for migration contend that settlers help the economy by expanding the work supply…

Q: True

A: The ‘inflation rate’ refers to the percentage(%) increase(↑) or decrease(↓) in the price(P) level,…

Q: If wages fall, then the short-run aggregate curve shifts to the

A: In an economy, wages refers to the amount of money earned by the people when they provide their…

Q: How would the long-run equilibrium output change if the price level fell?  Decrease, Increase or No…

A: The aggregate supply is the total amount of services and commodities that firms in an economic plan…

Q: Assume the labour market is in equilibrium initially. How would each of the following shock affect…

A: Given: There is equilibrium in the labor market.

Q: a. Shift the appropriate curve or curves to show the initial short-run adjustment. Then place the…

A: IS curve can be shifted either towards the right or to the left when there are fiscal policies taken…

Q: The country of Freeland has an aggregate demand curve determined by the equation Freeland also has a…

A: The quantity theory of money:The quantity theory of money equation can be written as follows: