Essentials of Economics (MindTap Course List)
8th Edition
ISBN: 9781337091992
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 23, Problem 2CQQ
To determine
The impact of sudden stock market crash on economy.
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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.
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.
A change in the expected price level shiftsa.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-curve
Chapter 23 Solutions
Essentials of Economics (MindTap Course List)
Ch. 23.1 - Prob. 1QQCh. 23.2 - Prob. 2QQCh. 23.3 - Prob. 3QQCh. 23.4 - Prob. 4QQCh. 23.5 - Prob. 5QQCh. 23 - Prob. 1CQQCh. 23 - Prob. 2CQQCh. 23 - Prob. 3CQQCh. 23 - Prob. 4CQQCh. 23 - Prob. 5CQQ
Ch. 23 - Prob. 6CQQCh. 23 - Prob. 1QRCh. 23 - Prob. 2QRCh. 23 - Prob. 3QRCh. 23 - Prob. 4QRCh. 23 - Prob. 5QRCh. 23 - Prob. 6QRCh. 23 - Prob. 7QRCh. 23 - Prob. 1PACh. 23 - Prob. 2PACh. 23 - Prob. 3PACh. 23 - Prob. 4PACh. 23 - Prob. 5PACh. 23 - Prob. 6PACh. 23 - Prob. 7PACh. 23 - Prob. 8PACh. 23 - Prob. 9PACh. 23 - Prob. 10PA
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- A change in the expected price level 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.arrow_forwardExplain 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 ?arrow_forwardAssume 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_forward
- A change in which of the following would shift the short-run aggregate-supply curve but not the long-run aggregate-supply curve? a)the labor force b)the expected price level c)the capital stock d)the state of technologyarrow_forwardGraph Initial Aggregate Demand/Short Run Aggregate Supply/Long Run Aggregate Supply and the shifts resulting from the scenario Please answer correct explain plz Don't answer by pen paper plzarrow_forwardExplain 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.arrow_forward
- 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.arrow_forwardAn increase in the price of energy would a- shift the short-run aggregate supply down/right b- shift the long-run aggregate supply curve to the right c- shift the long-run aggregate supply curve to the left d- shift the short-run aggregate supply up/leftarrow_forwardIn the long run, the price level is determined by a. the short-run aggregate supply curve and long-run aggregate supply curve being the same. b. the aggregate demand curve being perfectly vertical. c. the aggregate demand curve. d. short-run aggregate supply curve.arrow_forward
- question 1- Along the short-run aggregate supply curve (SRAS), an increase (rightward shift) in the aggregate demand curve will increase:a. both the price level and real GDP.b. real GDP without raising the price level.c. the price level without affecting real GDP.d. the price level but reduce real GDP. question 2- Which of the following would cause an increase (rightward shift) in the short-run aggregate supply curve (SRAS)?a. An increase in the long-run aggregate supply curve (LRAS).b. A decrease in the CPI.c. An increase in the CPI.d. A decrease in oil prices.arrow_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_forward
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