Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 20.A, Problem 4SQ
To determine
The SRAS when the nominal wages and salaries are fixed and there is a change in price.
Expert Solution & Answer
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Students have asked these similar questions
The aggregate supply curve is
a.
relatively flat at low levels of output.
b.
generally flatter as the level of resource use rises.
c.
never vertical, even at full employment.
d.
relatively steep at low levels of outpu
The aggregate supply curve (short run) is upward-sloping because ______
Use the model of aggregate demand and short run aggregate supply to explain how each of the following would affect real gdp and the price level in the short run.
A. Reduction in nominal wages
B. Major improvement in technology
Reduction in net export
Chapter 20 Solutions
Economics For Today
Ch. 20.7 - Prob. 1YTECh. 20.A - Prob. 1SQPCh. 20.A - Prob. 2SQPCh. 20.A - Prob. 3SQPCh. 20.A - Prob. 4SQPCh. 20.A - Prob. 5SQPCh. 20.A - Prob. 6SQPCh. 20.A - Prob. 1SQCh. 20.A - Prob. 2SQCh. 20.A - Prob. 3SQ
Ch. 20.A - Prob. 4SQCh. 20.A - Prob. 5SQCh. 20.A - Prob. 6SQCh. 20.A - Prob. 7SQCh. 20.A - Prob. 8SQCh. 20.A - Prob. 9SQCh. 20.A - Prob. 10SQCh. 20.A - Prob. 11SQCh. 20.A - Prob. 12SQCh. 20.A - Prob. 13SQCh. 20.A - Prob. 14SQCh. 20.A - Prob. 15SQCh. 20.A - Prob. 16SQCh. 20.A - Prob. 17SQCh. 20.A - Prob. 18SQCh. 20.A - Prob. 19SQCh. 20.A - Prob. 20SQCh. 20 - Prob. 1SQPCh. 20 - Prob. 2SQPCh. 20 - Prob. 3SQPCh. 20 - Prob. 4SQPCh. 20 - Prob. 5SQPCh. 20 - Prob. 6SQPCh. 20 - Prob. 7SQPCh. 20 - Prob. 8SQPCh. 20 - Prob. 9SQPCh. 20 - Prob. 10SQPCh. 20 - Prob. 11SQPCh. 20 - Prob. 1SQCh. 20 - Prob. 2SQCh. 20 - Prob. 3SQCh. 20 - Prob. 4SQCh. 20 - Prob. 5SQCh. 20 - Prob. 6SQCh. 20 - Prob. 7SQCh. 20 - Prob. 8SQCh. 20 - Prob. 9SQCh. 20 - Prob. 10SQCh. 20 - Prob. 11SQCh. 20 - Prob. 12SQCh. 20 - Prob. 13SQCh. 20 - Prob. 14SQCh. 20 - Prob. 15SQCh. 20 - Prob. 16SQCh. 20 - Prob. 17SQCh. 20 - Prob. 18SQCh. 20 - Prob. 19SQCh. 20 - Prob. 20SQ
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Similar questions
- Why the slope of the aggregate supply curve differs in the short-run and in the long-run? Why the long- run aggregate supply curve is vertical and why the short-run supply curve is upward sloping? Explain in detail.arrow_forwardPlease fully explain The short-run aggregate supply curve shows how ________ cause output to rise. Answer A. increases in inflation B. decreases in unemployment C. decreases in nominal interest rates D. All of these E. None of thesearrow_forwardWhich of the following would be most likely to produce a rightward shift in the long run aggregate supply curve (LAS)? a) a decrease in the quantity of oil b) an increase in the quantity and skills of the labour force c) an increase in input prices d) a decrease in the productivity of landarrow_forward
- One reason the short-run aggregate supply curve is positively sloped is that lower price level raises ________________ if nominal wages are sticky. (a) Real wages (b) nominal wages (c) unemployment (d) employmentarrow_forwardFor the Canadian economy, what is the least important of the three reasons for the downward slope of the aggregate-demand curve? a. wealth effect b. interest-rate effect c. exchange-rate effect d. real-wage effectarrow_forwardIf the short-run aggregate supply shifts left: a) Price level rises and output falls b) Price level falls and output rises c) Price level falls and output falls d) Price level rises and output risesarrow_forward
- Along a given short run macro aggregate supply curve a lower price level is associated with a lower amount of aggregate output because ______________________________________. Group of answer choices the aggregate supply curve is vertical in the short run wages and interest rates are relatively fixed in the short run wages change in the short run but not in the long run the interest rate is higher in the short run than in the long runarrow_forwardAssuming a stable short-run supply curve, what will happen if there is a shift in aggregate demand? a) Profits and output increase in the long-run. b) Unemployment decreases in the long-run. c) Profits and output decrease in the short-run. d) Unemployment increases in the short-run. e) Unemployment and prices move in opposite directions in the short-run.arrow_forwardRefer to the diagram. The initial aggregate demand curve is AD1 and the initial aggregate supply curve is AS1. In the long run, the aggregate supply curve is vertical in the diagram because: A) nominal wages and other input prices are assumed to be fixed. B) real output level Qf is the potential level of output. C) price level increases produce perfectly offsetting changes in nominal wages and other input prices. D) higher than expected rates of actual inflation reduce real output only temporarily.arrow_forward
- why the short run aggregate supply curve has a positive slope and the long run supply curve a vertical line.arrow_forwardThe aggregate supply curve is upward sloping in the short-run because of the Profit effect which says the rate of output will increase as the price level increases. Profit effect which says higher input costs will cause an increase in the rate of output. Cost effect which says the rate of output will increase if production costs increase. Cost effect which says higher input costs will cause an increase in the rate of inputs. Inflation effect which says that everything costs more because U.S. debt is so large.arrow_forward
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