Answer it fastly and in short QUESTION Bthe short-run aggregate supply curve is horizontal, and each member of the general public chooses to hold a larger fraction of his or her income as cash balances, then:O output and employment will increase in the short run.O output and employment wil decrease in the short run.O prices will increase in the short run.O prices will decrease in the short run.

Cash balance refers to the part of income that people want to hold as cash in hand.

Answered: rease in the short run ease in the…

Business

Economics

rease in the short run ease in the short run

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter33: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 4CQQ

See similar textbooks

Related questions

Q: You have calculated via OLS: In(y) = 0.400 + In(x_1)*0.090 +x_2*0.840 Calculate the average marginal…

A: The average of anticipated changes in fitted values for one unit change in X for each X value, i.e.…

Q: All of the following are main economic aims of governments EXCEPT O a. Low and stable inflation O b.…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Problem 3 The current Discount Rate is 0.5%. The current Federal Funds Rate is 0.5%. The interest…

A: Given information Current discount rate = 0.5% Current federal fund rate=0.5% Interest on excess…

Q: apan employed strategic trade policy to further its national interests. Give an example of an…

A: The government began a gradual trade liberalization policy in the 1960s. It ease import quotas,…

Q: How is regionalism different and yet a part of globalization?

A: Globalization,makes you aware of your surroundings. When you open your eyes, you notice that public…

Q: What amount of money invested today at 15% interest can provide the following scholarships: ₱30,000…

A: Given:- Interest=15% Scholarship value=P30,000 for 6 year at each year end…

Q: Utility EU sU(36)+ T25U(256) 256 W (Wealth) 36

A: *Answer: Utility function : U = (W)0.5 High Quality worth = 256 Probability = 0.75 Low Quality…

Q: Suppose a closed economy with no government spending or taxing is capable of producing an output of…

A: Consumption is the sum of Autonomous consumption and induced consumption. Autonomous consumption…

Q: Which of the following is true of market social equilibrium if third parties, people outside the…

A: Externality refers to spill-over effect of a good on third party which is not involved in either…

Q: Which of the following scenarios indicates that an economy which might be in a recession? Select the…

A: Real GDP is the value of final goods and services produced in the economy within a given period of…

Q: produ ossibility table Rye 0 10 20 30 40 0 50 O increasing marginal opportunity cost. decreasing…

A: In business examination, the creation plausibility wilderness (PPF) is a bend showing the differing…

Q: Lotteries result in the distribution of income

A: Income Inequality is defined as the unequal distribution of income in an economy. It is the…

Q: Adam Smith believed that since businesspeople are motivated to improve their own prosperity, their…

A: Adam Smith believed in broader perspective of the society. He said that economies produce and…

Q: Consumers value high-quality dirt bikes at $6,000 and low- quality dirt bikes at $2,500. The supply…

A: Answer; Option 3 is right answer

Q: (2,1) (7,7) (1,2 Jarantee for each row and each column. Find the prudent strategies for cate any…

A: *Answer: Prudent Strategies are those for which worst possible outcome is the best among all .…

Q: EXHIBIT #1 Price Quantity TC $10 40 $374 $10 41 $376 $10 42 $360 $10 43 $365 $10 44 $390 $10 45 $400…

A: Answer; Q2) Option (b) 43 units is correct

Q: Refer to the below graph, where Sa and Dd are the domestic supply and demand for a product. Sd $16…

Q: The balance of payment current account visible balance section carried imports of goods of…

A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

Q: 10. Suppose that a monopolist faces a linear demand curve having a vertical intercept of (0,a) and a…

A: Given information Demand curve is linear demand curve At the mid segment price and quantity in…

Q: The Federal Sentencing Guidelines for Organizations (FSGO) _____ encourages but does not require…

A: Financial Institutions and Activities are supervised and regulated by the Federal Reserve.Individual…

Q: A market has 28 firms, 26 of which have 3% market share. The remaining two have 21% and 1% market…

A: Answer; We know that HHI= sum of square of market share of each firm. Given 28 firms with…

Q: Three firms are bidding for the rights to provide cable television services. The demand for cable…

A: Demand function : P = 100 - Q Firm 1 AC : AC1 = 10 Total Cost = 10 Q Firm 2 AC : AC 2 = 20 TC =…

Q: Consider a variant of the Battle of the Moody Sexes game where player 1 also has two types (player 2…

A: In the battle of the sexes game, a mixed strategy requires both parties to randomize.

Q: Price Level LRAS SRAS Price Level LRAS (P) (P) SRAS Pe P₂ XXXX AD AD QE QN Real GDP (Q) Qv QE Real…

A: Equilibrium in the market occurs at the intersection of AD and SRAS curves.

Q: Which of the following does not describe a proprietorship? Owned by one person Has unlimited…

A: In a sole proprietary, a person owns the business. Business structures of this kind are the best.…

Q: The growth in the velocity of M2 has been steady at about 2% since 1950 so we figure it will stay…

A: Answer; We Know That Inflation in Future ( P)= 5% Rate Of Growth Of Real Output (Y) =…

Q: The corners hypothesis argues that policymakers should: Select one: a. abandon fixed exchange rates…

A: Exchange rate: - the exchange rate is the rate at which the currency of one country can be exchanged…

Q: a. False. The long run potential growth rate always depends on low rates of inflation. b. True, but…

A: a) In the long run, the potential growth rate depends on inflation, demand, employment, technology,…

Q: 15. The different types of data Suppose you have the following data set, which shows information…

A: Broadly, there are three types of datasets: 1. Cross-Sectional: For different subjects at the same…

Q: The ratio AGDP AG O money multiplier Omultiplier sticky wages is the multiplier for government…

A: The government expenditure multiplier is thus the ratio of a change in government spending (G) to a…

Q: Kyle is a grade 5 student currently taking his modular class at home since the pandemic happened in…

A: Between 5th and high school its 7 years Amount saved = 500Php twice a month Interest rate (i) =…

Q: O a. is a fixed charged levied on imports while is a fraction of the cost of imports.…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: You need to hire some new employees to staff your startup venture. You know that potential employees…

A: When an employer does not know the full value an employee will add when they join, but the employee…

Q: Should DAMC consider other foreign investment strategies, like strategic alliance, joint venture…

A: Even though the pandemic represents a "detour" from the globalization trend, DAMC should investigate…

Q: uppose output and income is equal to 16100, the marginal propensity to consume is 0.65, and…

A: Consumption is the sum of Autonomous consumption and induced consumption. Autonomous consumption is…

Q: Answer the following questions about stabilization policy. What do we mean by stabilization policy?…

A: The Stabilization policy can be defined as a strategy enacted by a government or the central bank of…

Q: What are the determinants of elasticity?

A: Elasticity of demand is a key economic concept that determines how much a variable will change as a…

Q: Suppose that a standard tuna sushi (6 units) costs 10 pounds in UK and 11 US Dollars in California,…

A: Given information 6 Sushi cost in UK=10 pounds 6 Sushi cost in California=11 dollars Nominal…

Q: Problem 15-04 (algo) Suppose that Costa Rican worker Carlos can produce either 180 pounds of coffee…

A: a) Carlos's opportunity cost of producing computer:- Opportunity cost=1801…

Q: 8. Factors that influence standard of living

A: When the government invests in technology, education to increase skills and create capital…

Q: Nora is a runner looking for a new pair of running shoes. She found a pair that looks nice and fits…

A: Utility function : U = (W)0.5 High Quality worth = 256 Probability = 0.75 Low Quality Worth = 36…

Q: Core inflation figures omit health care prices, but not energy prices. True or False True False

A: The given statement is false. Core inflation is the change in the costs of goods and services but it…

Q: With respect to your knowledge of the economic impact of the coronavirus outbreak, explain how the…

A: Aggregate supply is an economy's gross domestic product (GDP), the total amount a nation produces…

Q: to two decimal places. (a). The CPI (times 100) is 100 at the time that Frank makes the loan. It is…

A: Nominal rate of interest is the rate of interest where inflation has not been adjusted and real rate…

Q: escribe the term macro economic

A: The answer is given below

Q: A negative externality results if __________________. A. consuming a good B. consuming a…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 17. A salesperson at Joe's Exotic Pets is trying to sell iguanas. The number of iguanas that she…

A: We have given probability of efforts and sales with cost of effort for a salesperson.

Q: The management of a large fast food chain evaluates the supplier of their deep---frozen beef…

A: Standard Deviation Standard deviation in this condition implies to the variance that happens in the…

Q: 61. The total demand for money curve will increase (as a result of): A. if investors perceive less…

A: At the marketplace, money demand refers to the amount of money held by the people to make different…

Question

Answer it fastly and in short

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

When would the long-run aggregate-supply curve shift right? Select one: O a. When immigration increases or the government abolishes the minimum wage. O b. When immigration decreases or the government makes a substantial increase in the minimum wage. O c. When immigration decreases or the government abolishes the minimum wage O d. When immigration increases or the government makes a substantial increase in the minimum wage.
The economy has shifted and the quantity of the real GDP supplied has increased. What has potentially happened to aggregate price levels? Potentially the price levels have increased to a higher aggregate price level and if the wages are sticky, businesses have hired more employees as labor has become cheaper. O Potentially the price levels have decreased to a lower aggregate price level and if the wages are sticky, businesses have hired more employees as labor has become cheaper. Potentially the price levels have increased to a higher aggregate price level and if the wages are sticky, businesses have fired some employees as labor has become too expensive.
In order to shift the vertical aggregate supply curve to the left, which of the following would have to occur? O expansion of potential GDP O increase in productivity flexible wage and price adjustments O breakdown of key market institutions
The aggregate supply curve shows the relationship between the price level and the: O potential GDP in the economy. O total quantity of output that suppliers collectively produce. total quantity of output that buyers collectively plan to purchase. equilibrium GDP in the economy.
Question 1 Increase aggregate supply - both SRAS and LRAS - occurs due to all of the following, except: O good harvests O increased labor supply O technological breakthroughs O discoveries A Moving to another question will save this response. e pr O search F3 68 $ 3 4 E R D F II 방 F5 % 5 T G O F6 <6 Y H & 7 10 D F8 00 8 F9 1 K
10. Great Depression In 1939, with the U.S. economy not yet fully recovered from the Great Depression, President Roosevelt proclaimed that Thanksgiving would fall a week earlier than usual so that the shopping period before Christmas would be longer. Graph A Graph B LRAS Aggregate Supply Aggregate Demand Price Level LRAS Quantity of Output Price Level Aggregate Supply Aggregate Demand Quantity of Output
Consumer Spending increased by 5% last month. Based on this data, which of the following will likely occur in the next 3 -6 months? O GDP will increase O Unemployment will increase O The economy will enter a trough O Stagflation will occur
Net investment equals O gross investment plus depreciation. O gross investment minus depreciation. O capital plus depreciation. O new capital plus old capital. O the amount of national wealth.
Explain the influence of the following events on the quantity of real GDP supplied and aggregate supply in India. When fuel prices rise When the price level in India increases A. short-run aggregate supply decreases; the quantity of real GDP supplied increases O B. long-run aggregate supply decreases; short-run aggregate supply increases OC. long-run aggregate supply increases; the quantity of real GDP supplied increases OD. short-run aggregate supply increases; the quantity of real GDP supplied decreases The graph gives the long-run aggregate supply curve and the short-run aggregate supply curve for India. Suppose Canadian firms move their call handling, IT, and data functions to India. The full-employment price level does not change. If long-run aggregate supply changes, draw the new long-run aggregate supply curve and label it. If short-run aggregate supply changes, draw the new short-run aggregate supply curve and label it. Draw a point at the full-employment price level at…
Question 28 Macroeconomists would suggest that an economy experiencing high unemployment should adopt policies to O reduce aggregate demand. O increase aggregate demand. O increase aggregate supply. O reduce aggregate supply.
Which of the following causes the short-run aggregate supply curve to shift to the right? O A. an increase in the expected price of an important natural resource B. a positive technological change OC. a higher expected future price level O D. a decrease in the capital stock
The economy is depicted in the graph to the right. a. Suppose, there are new discoveries of key raw materials. Which of the following best describes the result of this event? O A. The short-run aggregate supply curve shifts out while the long-run aggregate supply curve shifts in. OB. Both the short-run and long-run aggregate supply curves shift outward. OC. The short-run aggregate supply curve shifts inward while the long-run aggregate supply curve shifts outward. OD. Both the short and long-run aggregate supply curves shift inward. b. Complete the diagram. 1.) Using the line drawing tool, draw the new long-run aggregate supply curve representing this shock. Label it as LRAS,. 2.) Using the 3-point curved line drawing tool, draw the new SRAS representing this shock. Label it 'SRAS,'. Carefully follow the instructions above, and only draw the required objects. to search O