MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Question
Chapter 10, Problem 18SQ
To determine
The indication of the shift in the aggregate demand curve.
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Students have asked these similar questions
If aggregate demand shifts left, then in the short run
a.
the price level and real GDP both rise.
b.
the price and real GDP both fall.
c.
the price level falls and real GDP rises.
d.
the price level rises and real GDP falls.
What three factors affect long-run aggregate supply?
A. Natural Resources, Technology, and unemployment
B. Resources, technology, and institutions
C. Interest rates, inflation, and the quantity of money
D. None of the above
Suppose that aggregate supply deceases while aggregate demand held constant. a. What happens to the price level? b. What happens to national output?
Chapter 10 Solutions
MACROECONOMICS FOR TODAY
Ch. 10.7 - Prob. 1YTECh. 10.A - Prob. 1SQPCh. 10.A - Prob. 2SQPCh. 10.A - Prob. 3SQPCh. 10.A - Prob. 4SQPCh. 10.A - Prob. 5SQPCh. 10.A - Prob. 6SQPCh. 10.A - Prob. 1SQCh. 10.A - Prob. 2SQCh. 10.A - Prob. 3SQ
Ch. 10.A - Prob. 4SQCh. 10.A - Prob. 5SQCh. 10.A - Prob. 6SQCh. 10.A - Prob. 7SQCh. 10.A - Prob. 8SQCh. 10.A - Prob. 9SQCh. 10.A - Prob. 10SQCh. 10.A - Prob. 11SQCh. 10.A - Prob. 12SQCh. 10.A - Prob. 13SQCh. 10.A - Prob. 14SQCh. 10.A - Prob. 15SQCh. 10.A - Prob. 16SQCh. 10.A - Prob. 17SQCh. 10.A - Prob. 18SQCh. 10.A - Prob. 19SQCh. 10.A - Prob. 20SQCh. 10 - Prob. 1SQPCh. 10 - Prob. 2SQPCh. 10 - Prob. 3SQPCh. 10 - Prob. 4SQPCh. 10 - Prob. 5SQPCh. 10 - Prob. 6SQPCh. 10 - Prob. 7SQPCh. 10 - Prob. 8SQPCh. 10 - Prob. 9SQPCh. 10 - Prob. 10SQPCh. 10 - Prob. 11SQPCh. 10 - Prob. 1SQCh. 10 - Prob. 2SQCh. 10 - Prob. 3SQCh. 10 - Prob. 4SQCh. 10 - Prob. 5SQCh. 10 - Prob. 6SQCh. 10 - Prob. 7SQCh. 10 - Prob. 8SQCh. 10 - Prob. 9SQCh. 10 - Prob. 10SQCh. 10 - Prob. 11SQCh. 10 - Prob. 12SQCh. 10 - Prob. 13SQCh. 10 - Prob. 14SQCh. 10 - Prob. 15SQCh. 10 - Prob. 16SQCh. 10 - Prob. 17SQCh. 10 - Prob. 18SQCh. 10 - Prob. 19SQCh. 10 - Prob. 20SQ
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- Assume that the stock market increases by 5% this month. As a result Question 6 options: a) the aggregate demand curve shifts right b) the aggregate demand curve shifts left c) the short-run aggregate supply curve shifts right d) the short-run aggregate supply curve shifts leftarrow_forwardWhich items describe long-run aggregate supply (LRAS), and which ones describe short-run aggregate supply (SRAS)? Long-Run Aggregate Supply The unemployment rate, u, may be above or below the natural rate. Unemployment is at the natural rate, u*. All prices can change. Short-Run Aggregate Supply + Only some prices can change. The economy's output may be above or below the full-employment level, Y*. The economy's output, Y, is at the full- employment level.arrow_forwardAggregate demand is more likely to than aggregate supplyl in the short run a- bigger leakages b-national income c-domestic investment d- shift substantuallyarrow_forward
- Aggregate demand and aggregate supply, based on a problem from “Principles of Economics” by N. Gregory Mankiw a) List the components of country’s GDP in an open economy. For each component, provide an example of an event that would cause a shift of the aggregate demand curve to the right.b) What will be the effect of such events on the level of prices and the real outcome in the short run? Provide a graph.c) What will be the effect of such events on the level of prices and the real outcome in the longrun? Update your grapharrow_forwardWhich does not increase aggregate demand?Select one: a.lower income taxes. b.lower value of Canadian dollar. c.consumers become more optimistic. d.lower interest rates. e.technological innovations.arrow_forwardgovernment increases spending on national defense. based on the statement above, explain the short-run and long-run effects on output and the price level, assuming policymakers take no action. Analyze with graphs!arrow_forward
- What effects would each of the following have on aggregate demand or aggregate supply? In each case use a diagram to show the expected effects on the equilibrium price level and the level of real output. Assume all other things remain constant.a. A widespread fear of depression on the part of consumers.b. A $2 increase in the excise tax on a pack of cigarettes.c. A reduction in interest rates at each price level.d. A major increase in Federal spending for health care.e. The expectation of rapid inflation.f. The complete disintegration of OPEC, causing oil prices to fall by one-half.g. A 10 percent reduction in personal income tax rates.h. A sizable increase in labor productivity (with no change in nominal wages).i. A 12 percent increase in nominal wages (with no change in productivity).j. Depreciation in the international value of the dollar.arrow_forwardA change in the price level produces a ________ the aggregate demand curve. i. shift in ii. change in the slope of iii. movement along Question 2Answer a. i only b. iii only c. i and ii d. i and iii e. ii onlyarrow_forwardMost economists use the aggregate demand and aggregate supply model primarily to analyzea. short-run fluctuations in the economy.b. the effects of macroeconomic policy on the prices of individual goods.c. the long-run effects of international trade policies.d. productivity and economic growth.arrow_forward
- (b) Assume that no policy action is taken. a. Show on your graph from part (a) the change in short-run aggregate supply that will return the economy to the natural rate of output. Explain why this happens. b. Label the new equilibrium output and price levels.arrow_forwardOf all the influences on production plans, which influences are constant along the aggregate supply curve? A. All influences except the price level B. The price level if it doesn't change C. Only the price level D. All influences including the price level Thanks!arrow_forwardThe aggregate demand curve shows the relationship between the volume of purchases and the price level. The aggregate demand curve is downward sloping because, ceteris paribus people are willing and able to buy more goods and services at lower average prices. Which of the following is a reason for the downward slope of the aggregate demand curve? A- The real balances effect B- The interest rate effect C- The foreign trade effect D- All of the abovearrow_forward
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