Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 20.A, Problem 6SQ
To determine
The impact of adjusting nominal wages with prices on
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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
The aggregate supply-aggregate demand model predicts that an unexpected increase in government spending will have an effect. What will be the short-run effects?a.A decrease in the price level and an increase in real output.b.A decrease in the price level and no effect on real output.c.An increase in the price level and a decrease in real output.d.A decrease in both the price level and real output.e.An increase in both the price level and real output.
Which 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 land
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
- If the economy is in a recession due to aggregate demand shifting inward and the economy is contracting, if aggregate demand doesn't improve, we can expect the short-run aggregate supply curve to a. become the long-run aggregate supply curve. b. shift inward. c. will remain unchanged. d. shift outward but real GDP will be unchanged.arrow_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_forwardWhy 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_forward
- Please 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 causes the short-run aggregate demand curve to slope downwards? a) Changes in the net exports b) Changes in labor c) Changes in capital d) None of the abovearrow_forwardUse 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. an increase in government purchases a reduction in nominal wages a major improvement in technology a reduction in net exportsarrow_forward
- . When aggregate supply is decreased it results in ________ inflation and _______output and jobs.higher, higherhigher, lowerlower, higherlower, lowerarrow_forwardWhat is the effect of an increase in the price level on the? short-run aggregate supply? curve? A. a shift of the curve to the left B. a movement up along a stationary curve C. a combination of a movement along the curve and a shift of the curve D. a shift of the curve to the rightarrow_forwardOne 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_forward
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