Macroeconomics
4th Edition
ISBN: 9780393602487
Author: Jones, Charles I.
Publisher: W. W. Norton & Company
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Question
Chapter 9, Problem 2RQ
To determine
The reason for measuring short run-output in percentage rather than in dollars.
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Why do we measure short-run output Y in percentage terms rather than in dollar terms? Explain in detail please
Economic activity fluctuates in the short-run.
Why is this the case?
Please explain
True or False? What we call “short-run output,” denoted by Ỹ, is measured in dollars.
True
False
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- For an increase in output, average costs change by more in the short-run than in the long-run, but for a decrease in output, the opposite is true. True, false, or uncertain?arrow_forwardWhich of the following would cause an increase in the price level in the long run? Choose one:A. Natural resources increase. B. Net exports decrease. C. There is a temporary increase in the price of oil. D. Investment increases. E. The number of workers in the labor force increases.arrow_forwardStarting from long-run equilibrium, what will be the impact of a decrease in aggregate demand? It will shift the LRAS curve to the right. It will result in a higher price level. It will decrease unemployment. It will cause a recessionary gap.arrow_forward
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