Explain why the long-run aggregate-supply curve is vertical. Explain three theories for why the short-run aggregate-supply curve slopes upward. What variables shift both the long-run and short-run aggregate-supply curve? What variable shifts the short-run aggregate-supply curve but not the long-run aggregate-supply curve ?

Explain why the long-run aggregate-supply curve is vertical. Explain three theories for why the short-run aggregate-supply curve slopes upward. What variables shift both the long-run and short-run aggregate-supply curve? What variable shifts the short-run aggregate-supply curve but not the long-run aggregate-supply curve ?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section23.4: The Aggregate-supply Curve

Problem 4QQ

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What assumptions cause the immediate-short-run aggregate supply curve to be horizontal? Why is the long-run aggregate supply curve vertical? Explain the shape of the short-run aggregate supply curve.
Which of the following is consistent with the theory of aggregate supply? a. An increase in the expected price level shifts the short-run aggregate-supply curve to the left, and an increase in the actual price level shifts the short-run aggregate supply to the left. b. An increase in the expected price level shifts the short-run aggregate-supply curve to the right, and an increase in the actual price level shifts the short-run aggregate supply to the right. c. An increase in the expected price level shifts the short-run aggregate-supply curve to the left, and an increase in the actual price level does not shift the short-run aggregate supply. d. An increase in the expected price level shifts the short-run aggregate-supply curve to the right, and an increase in the actual price level does not shift the short-run aggregate supply. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of…
When production costs rise, in the short run: When production costs rise, in the short run: A. the aggregate-supply curve shifts down to the right B. the aggregate-demand curve shifts down to the left C. the aggregate-demand curve shifts up to the right D. the aggregate-supply curve shifts up to the left E. both the aggregate-demand curve and the aggregate-supply curve shift to the left
The effects of a higher than expected price level are shown by Answer shifting the short-run aggregate supply curve right. shifting the short-run aggregate supply curve left. moving to the right along a given aggregate supply curve. moving to the left along a given aggregate supply curve. Question 27 A decrease in the expected price level shifts Answer only the long-run aggregate supply curve right. only the short-run aggregate supply curve right. both the short-run and the long-run aggregate supply curve right. Neither the short-run nor the long-run aggregate supply curve right.
A decrease in the expected price level shifts only the long-run aggregate supply curve right. only the short-run aggregate supply curve right. both the short-run and the long-run aggregate supply curve right. Neither the short-run nor the long-run aggregate supply curve right.
Explain whether each of the following events shifts the short-run aggregate-supply curve, the aggregate-demand curve, both, or neither. For each event that does shift a curve, use a diagram to illustrate the effect on the economy.a There is a reduction in household income tax.b A cyclone destroys the year’s wheat crop.c Households decide to have less children.d A significant amount of iron ore is found in Western Australia, capable of supplying world trade for the next 50 years.
Explain whether each of the following events shifts the short-run aggregate-supply curve,the aggregate-demand curve, both, or neither. For each event that does shift a curve, use adiagram to illustrate the effect on the economy.d A significant amount of iron ore is found in Western Australia, capable of supplyingworld trade for the next 50 years.
Question 26 The effects of a higher than expected price level are shown by Answer shifting the short-run aggregate supply curve right. shifting the short-run aggregate supply curve left. moving to the right along a given aggregate supply curve. moving to the left along a given aggregate supply curve. Question 27 A decrease in the expected price level shifts Answer only the long-run aggregate supply curve right. only the short-run aggregate supply curve right. both the short-run and the long-run aggregate supply curve right. Neither the short-run nor the long-run aggregate supply curve right. Question 28 Which of the following shifts short-run, but not long-run aggregate supply right? Answer a decrease in the actual price level a decrease in the expected price level a decrease in the capital stock an increase in the money supply Question 29 In 1986, OPEC countries increased their production of oil. This caused Answer the price level to rise. aggregate supply to shift right.…
Discuss scenarios by giving practical examples. What might shift the aggregate-supply curve to the left? Use the model of aggregate demand and aggregate supply to trace through the short-run and long-run effects of such a shift on output and the price level.
Discuss the following scenarios by giving practical examples. What might shift the aggregate-demand curve to the left? Use the model of aggregate demand and aggregate supply to trace through the short-run and long-run effects of such a shift on output and the price level.
A sudden crash in the stock market shifts a. the aggregate-demand curve. b. the short-run aggregate-supply curve, but not the long-run aggregate-supply curve .c. the long-run aggregate-supply curve, but not the short-run aggregate-supply curve. d. both the short-run and the long-run aggregate-supply curves.