Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 8, Problem 17QP
To determine
Explain the change in price affect.
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If the price level rises and the money wage rate remains constant, what happens to the quantity of real GDP supplied?
How does the economy move?
If the price level rises and the money wage rate remains constant, the quantity of real GDP supplied _______ and there is a movement up along the _______.
A.
increases; aggregate supply curve
B.
increases; potential GDP line
C.
does not change; aggregate supply curve
D.
does not change; potential GDP line
Thanks!!
If the price level and the money wage rate rise by the same percentage, what happens to the quantity of real GDP supplied?
How does the economy move?
If the price level and the money wage rate rise by the same percentage, the quantity of real GDP supplied _______ and there is a movement up along the _______.
A.
does not change; potential GDP line
B.
increases; aggregate supply curve
C.
decreases; potential GDP line
D.
does not change; aggregate supply curve
Thanks!
Draw the aggregate demand, short run aggregate supply and the long run aggregate supply.
Chapter 8 Solutions
Economics (MindTap Course List)
Ch. 8.2 - Prob. 1STCh. 8.2 - Prob. 2STCh. 8.2 - The money supply has risen, but total spending has...Ch. 8.3 - Prob. 1STCh. 8.3 - Prob. 2STCh. 8.3 - Prob. 3STCh. 8.5 - Prob. 1STCh. 8.5 - Prob. 2STCh. 8 - Prob. 1QPCh. 8 - Prob. 2QP
Ch. 8 - Prob. 3QPCh. 8 - Prob. 4QPCh. 8 - Prob. 5QPCh. 8 - Prob. 6QPCh. 8 - Prob. 7QPCh. 8 - Prob. 8QPCh. 8 - Prob. 9QPCh. 8 - Prob. 10QPCh. 8 - Prob. 11QPCh. 8 - Prob. 12QPCh. 8 - Prob. 13QPCh. 8 - Prob. 14QPCh. 8 - Prob. 15QPCh. 8 - Prob. 16QPCh. 8 - Prob. 17QPCh. 8 - Prob. 18QPCh. 8 - Prob. 19QPCh. 8 - Prob. 20QPCh. 8 - Prob. 21QPCh. 8 - Prob. 1WNGCh. 8 - Prob. 2WNGCh. 8 - Prob. 3WNGCh. 8 - Prob. 4WNGCh. 8 - Prob. 5WNGCh. 8 - Prob. 6WNG
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Similar questions
- If the price level and the money wage rate rise by the same percentage, what happens to the quantity of real GDP supplied? How does the economy move? If the price level and the money wage rate rise by the same percentage, the quantity of real GDP supplied _______ and there is a movement up along the _______. A. does not change; potential GDP line B. increases; aggregate supply curve C. decreases; potential GDP line D. does not change; aggregate supply curvearrow_forwardIf the price level rises and the money wage rate remains constant, what happens to the quantity of real GDP supplied? How does the economy move? If the price level rises and the money wage rate remains constant, the quantity of real GDP supplied _______ and there is a movement up along the _______. A. increases; aggregate supply curve B. increases; potential GDP line C. does not change; aggregate supply curve D. does not change; potential GDP linearrow_forwardWhich of the following events increases aggregate supply? A. A decrease in potential GDP B. A rise in the price level C. A fall in the money wage rate D. A fall in the price levelarrow_forward
- If the price level rises and the money wage rate rises by the same percentage, what happens to the quantity of real GDP supplied? Along which aggregate supply curve does the economy move?arrow_forwardAdjust the graph to show the effect of a decrease in the aggregate price level. look at image Which of the statements offers the best explanation for the change demonstrated in the graph? a. Prices of goods and services decrease on average. b. Consumers purchase less of one product, like cars, and more of another, like clothing. c. The law of demand dictates the behavior of the aggregate demand curve. d. The prices of a few goods in the market dropped substantially.arrow_forwardsuppose that at a price index of 154 the quantity demand of u.s. real GDP is 10.0 trillion worth of goods. do these data represent aggregate demand or point on an aggregate demand curve? explain your answer?arrow_forward
- do not answer questions if u do not have your own work Chapter 14&15 Aggregate Demand and Aggregate Supply question: The aggregate demand curve portrays the relationship between the price level and real GDP. What are the three reasons this relationship is a negative or inverse relationship? Provide brief illustrations of each. do not add pic highly requesting do not copy and paste from CHEGG.COM OR coursehero.com OR INTERNET THIS QUESTIONS BEEN ANSWERS ALL OVER PLACE I HAVE ANSWERS FROM CHEGG TO WANT SOMETHING NEWarrow_forwardFill-in-the-Blank: An increase in the demand for consumption goods results in a (n) _________ in aggregate demand.arrow_forwardDraw an aggregate demand and supply diagram for Japan. In the diagram, show how each of the following affects aggregate demand and supply. a. The U.S. gross domestic product falls. b. The level of prices in Korea falls. c. Labor receives a large wage increase. d. Economists predict higher prices next year.arrow_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_forwardIf there is excess demand for goods and services in the economy at the current price level, then the: If there is excess demand for goods and services in the economy at the current price level, then the: A. price level will remain the same B. GDP will fall C. price level will increase D. price level will decreasearrow_forwardUse an aggregate supply (upsloping range) and aggregate demand diagram to demonstrate the effect of each of the following. For each problem state the determinant and what happens to the price level and RGDP. 4. A series of natural disasters disrupt production and delivery of goods. 5. Laws are tightened to make immigration more difficult and this leads to labor shortages. 6. Interest falls. 7. Productivity rises.arrow_forward
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