he shift from AS1 to AS2 in Exhibit 2 could be caused by a(an):   Group of answer choices sudden increase in the price of oil. increase in input prices for most firms. increase in workers' wages. all of the answers are incorrect

Q: (Exhibit: The Minimum Wage)   If it is thought that wages for some workers are not "sufficient" and…

A: Minimum wage is the lowest wage that has to give for the labor. Generally, minimum wage is greater…

Q: Cost-push inflation occurs when the: aggregates demand curve shifts leftward while the aggregate…

A: Cost pull inflation occurs when the aggregate supply curve shifts leftward while the demand curve is…

Q: Full employment relates to the number of people willing to work. True or false

A: We are going to discuss the definition of full employment to answer this question.

Q: For example, the sticky-wage theory asserts that output prices adjust more quickly to changes in the…

A: Since in the short run the supply curve is directly proportional to the price level hence, The…

Q: Suppose that a consulting firm has generated the following information about the economy of H:

A: a. We have enough information to calculate growth rate in export.

Q: The new home market tends to be highly cyclical.  Prices and home sales depend on the broader…

A: Copper pipes and wiring are used in making new homes.  Shortage of copper pipes and wiring will…

Q: Determinants of Demand include the following:     (a) Changes in supply     (b) Prices of goods…

A: Demand refers to the quantity that consumers are willing to buy at specific point of time .  Demand…

Q: was laid off from work during the pandemic but will be re-hired when the restaurant re-opens a…

A: Unemployed Person: An individual is considered unemployed who is able to work and willing to work at…

Q: An increase in the money stock has no effect on equilibrium income whenever the   a. IS curve is…

A: Equilibrium income occurs at the intersection point of IS and LM curve.  IS curve is downward…

Q: According to the supply-side economics principles promoted by President Ronald Reagan, economic…

A: The supply side economics is centered towards the aggregate supply and factors affecting the supply…

Q: The state government works with local employers to develop training programs to ensure student's…

A: Skill development programs are designed by the government to train the students according to the…

Q: When the price level changes, which of the following variables will change and thereby cause a…

A: Effect on real wealth: The intuition behind the important wealth effect is that when the worth level…

Q: Let the demand and the supply functions for a particular commodity satisfy Qdt =22−3Pt and Qst…

A: a) Given Qdt =22−3Pt and Qst =−2+Pt−1 which becomes Qst =−3+Pt General solution for Pt can be found…

Q: Use supply and demand graphs to illustrate the increase and subsequent decrease of lumber prices…

A: Suppose the market for lumber is in equilibrium as shown below, the equilibrium is maintained at…

Q: In the Heckscher-Ohlin model, modelling supply chains A   is impossible. B   can invalidate the…

A: H-O Model of free trade states that as countries advance toward free trade, the prices of the output…

Q: According to Keynes’ Law... Group of answer choices The total demand tends to rise above the total…

A: Keynesian economics is highly significant to explain the nature of a market using a specfiic…

Q: Macroeconomics would be concerned with     a) the effects of wage increases on steel…

A: The economics as a study includes the use of resources available with the society in the most…

Q: Assume that the economy is in a full employment equilibrium. There is an improvement in overall…

A: The economy is said to be at the full-employment level if it's all the factors of production are…

Q: Aggregate demand is the total quantity of output     A)consumers actually buy.    B) producers are…

A: Aggregate demand is the sum of four components: consumption, investment, government spending, and…

Q: Members of Congress are interested in increasing the minimum wage from its current rate of $7.25 an…

A: A minimum wage law gives rise to unemployment in the economy as the wage set by the government is…

Q: Identify an example of consumption smoothing. A) acquiring a mortgage to purchase a house B)…

A: The economic term employed to convey the need of individuals to have a reliable consuming way is the…

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: Which of the following must be true in the long run? Production increases when prices increase. An…

A: In the long run, the price of the goods and the wages are flexible in the market, that is why the…

Q: Let the demand and the supply functions for a particular commodity satisfy Qdt =22−3Pt and Qst…

A: Given,  Qdt=22-3Pt Qst=-2+Pt-1, which becomes, Qst=-3+Pt Pt denotes the market price in time period…

Q: The unemployment caused by minimum wage would be larger if   Question 2 options:   both labor demand…

A: Minimum wage is an example of price floor which is the minimum price that must be paid.

Q: The wage rate is the price of a unit of labor. What happens to the quantity of labor supplied if the…

A: The labor supply is the net hours that laborers wish to work at a given genuine pay rate.

Q: An increase in consumer confidence in a country will result in a 1.shift of the aggregate demand…

A: Consumer confidence is the index that shows the optimism that consumers have on the economy at any…

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: A large reduction in oil prices will cause: Group of answer choices a leftward shift in the…

A: The relationship between aggregate price level and aggregate output demanded by all the people in…

Q: After an unexpected in the price of oil, the long-run adjustment decreases the price level and the…

A: Long run adjustment refers to a situation when the output fluctuates in the short run because of…

Q: An improvement in technology will lead to  a. A lower equilibrium wage and lower equilibrium…

A: An improvement in technology normally implies that fewer and additionally less expensive information…

Q: An increase in the price of an imported resource will cause, Group of answer choices: The aggregate…

A: Aggregate supply represents the total quantity of output supplied at each price level.  The…

Q: During a recession the equilibrium wage will tend to Select ] v due to a [ Select ] v in [Select ] […

A: During recession, equilibrium wage decreases.

Q: In the Keynesian framework, which of the following events might cause recession/inflation. Explain…

A: d. The interest rates rises. Explanation:- When the interest rises, cost of borrowing will also…

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: A decrease in the nominal wage will cause the aggregate supply curve to   a. become steeper. .   b.…

A: When there is a change in price of good, it causes movement along the demand curve or supply curve.…

Q: In Exhibit 1, as production increases, firms resort to offering higher wage rates to attract the…

A: Aggregate supply refers to the minimum amount of sales proceeds which an entrepreneur expects to…

Q: If the price level rises above what was expected and nominal wages are fixed, then   production…

A: The sticky wage theory gives an economic explanation for changes in wages and supply of labour. It…

Q: Consider the static model of the household studied in class. When consumption and leisure are both…

A: In an economy, the static model of households states that people make their decision on the basis of…

Q: At Charlic's bakery, the MPL, is -12. Does this mean her average product must also be negative?…

A: MPL A marginal product of labor refers to a change in the level of output due to hiring an…

Q: Given the following circumstances, indicate whether or not the aggregate supply curve would shift…

A: Note : Since , there are multiple sub parts of the question , only the first three sub parts shall…

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: According to Classical Point of view:    a) All goods supplied will be demanded at an unchanged…

A: Cyclical unemployment occurs when the actual rate of unemployment exceeds the natural rate of…

Q: Suppose there is a hurricane that causes oil rigs and refineries in and around the Gulf of Mexico to…

A: Whenever there is a decline in the supply, it is termed a negative supply shock and whenever there…

Q: Discuss Keynesian view of minimum wage legislation on employment.

A: Minimum wage is the lowest wage that has to give for the labor. Generally, minimum wage is greater…

Q: The data also indicate that wages tend to be downward rigid.  This means that    a. wage declines…

A: Sticky wage theory states that wages are sticky moving down which means they tend to be downward…

Q: The new home market tends to be highly cyclical.  Prices and home sales depend on the broader…

A: A robust economic expansion raises personal incomes.  An increase in personal income will increase…

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.