Homework Answers
Ans: immediately move from E1 to E2.
Explanation:
When Ad curve shifts to AD2, the AD2 and SRAS1 curve intersects at point E2. Therefore, the equilibrium point will immediately move from E1 to E2.
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Figure: Classical Model of the Price Level Aggregate price level, P LRAS SRAS E3 SRAS E2...
Figure: The Money Supply and Aggregate Demand Panel (b) Panel (a) SRAS Price level Price level...
Figure: The Money Supply and Aggregate Demand Panel (b) Panel (a) SRAS Price level Price level SRAS P P2 P2 AD P AD AD2 AD YReal GDP (per year) Real GDP Y (per year) Y2 Y Refer to Figure: The Money Supply and Aggregate Demand. If the Federal Reserve intended to encourage investment and interest rates. This is shown in the money supply, and Treasury bills, expand the economy, it would panel buy; increase; lower; (a) buy; decrease; lower; (a)...
Price Level LRAS SRAS 125 -- AD2 120 i E11 - AD 12.0 12.2 Real GDP...
Price Level LRAS SRAS 125 -- AD2 120 i E11 - AD 12.0 12.2 Real GDP in Trillions Does the graph above reflect a Classical Model or a Keynesian Model? How do you know? What is happening in this economy in the short run? Note: This is nit a group discussion. All posts must be made individually.
Figure 16-1 Price level LRAS SRAS D AD AD AD Real GDP Refer to Figure 16-1....
Figure 16-1 Price level LRAS SRAS D AD AD AD Real GDP Refer to Figure 16-1. Suppose the economy is in short-run equilibrium above potential GDP and automatic stabilizers move the economy back to long-run equilibrium. Using the static AD- AS model in the figure above, this would be depicted as a movement from OD to C Eto A. B to A A to E. Cto B.
(Figure: Determining SRAS Shifts) If there is a decrease in input prices, the short-run aggregate supply...
(Figure: Determining SRAS Shifts) If there is a decrease in input prices, the short-run aggregate supply curve will shift from SRAS, to _____ and the price level will shift to SRASZ SRAS. SRAS, P2 Aggregate Price Level (P) РО PL AD 0 Q2 QO Q Aggregate Output (Q) SRAS1: P1 SRAS2: P2
Use the following to answer questions 6-7: Figure: Determining Fiscal Policy LRAS SRAS AD Aggregate Price Level (P) Agg...
Use the following to answer questions 6-7: Figure: Determining Fiscal Policy LRAS SRAS AD Aggregate Price Level (P) Aggregate Output (Q) 6. (Figure: Determining Fiscal Policy) Expansionary fiscal policies could: A) move the economy to full employment. B) move the economy away from full employment. C) lead to a lower price level. D) lead to a lower price level and lower unemployment. 7. (Figure: Determining Fiscal Policy) The best discretionary fiscal policy option is: A) expansionary fiscal policy that leads...
(Figure: AD– AS Model II) Refer to Figure: AD– AS Model II. If the value of...
(Figure: AD– AS Model II) Refer to Figure:
AD– AS Model II. If the value of household wealth
increases, the _____ curve will shift to the _____.
A.
SRAS; right
B.
SRAS; left
C.
AD; left
D.
AD; right
Aggregate price level LRAS SRAS1 E1 P1 AD1 Y, = potential output Real GDP
1. . (Figure: Determining SRAS Shifts) If there are advances in technology, the short-run aggregate supply...
1.
.
(Figure: Determining SRAS Shifts) If there are advances in
technology, the short-run aggregate supply curve will shift from
SRAS0 to _____ and the price level will shift to
_____.
SRAS1; P0
SRAS2; P2
SRAS2; P1
SRAS1; P1
2.
Simultaneous recession and deflation can be explained by:
a decrease in aggregate supply.
an increase in aggregate supply.
a decrease in aggregate demand.
an increase in aggregate demand.
3.
Which is a determinant of aggregate supply?
household expectations
prices of...
Question 56 (1 point) Consider the aggregate supply-aggregate demand model. How does an increase in aggregate...
Question 56 (1 point) Consider the aggregate supply-aggregate demand model. How does an increase in aggregate demand affect the unemployment rate and the inflation rate? LRAS: SRAS Price level (GDP deflator 2009 = 100) AD AD AD GDP, GDP, GDP AD AD AD2 GDP, GDP, GDP; Real GDP (trillions of 2009 dollars) The unemployment rate decreases and the inflation rate increases. ia The unemployment rate increases and the inflation rate decreases. Both the unemployment rate and the inflation rate increase....
New LRAS, SRAS, and AD lines in the graph for the next year: Price level The...
New LRAS, SRAS, and AD lines in the graph for the next
year:
Price level The following graph shows an economy in long-run macroeconomic equilibrium. All the usual assumptions of the dynamic demand and supply model hold Firms and workers expect there to be a decline in the inflation rate in the coming year LRAS, SRAS Use the line tool to draw three lines 1) the new LRAS, 2) the new SRAS, and 3) the new AD line in the...
Price ↑ Leve LRAS SRAS2 SRAS Ps P2 AD Y1 Quantity of Output Refer to Figure 33-11. A movement from P, and Y2, to P2 and Y, would be consistent with a decrease in consumption expenditures stagflatiorn...
Price ↑ Leve LRAS SRAS2 SRAS Ps P2 AD Y1 Quantity of Output Refer to Figure 33-11. A movement from P, and Y2, to P2 and Y, would be consistent with a decrease in consumption expenditures stagflatiorn sticky-wages an increase in net exports.
Price ↑ Leve LRAS SRAS2 SRAS Ps P2 AD Y1 Quantity of Output Refer to Figure 33-11. A movement from P, and Y2, to P2 and Y, would be consistent with a decrease in consumption expenditures stagflatiorn...
Figure: The Money Supply and Aggregate Demand Panel (b) Panel (a) SRAS Price level Price level SRAS P P2 P2 AD P AD AD2 AD YReal GDP (per year) Real GDP Y (per year) Y2 Y Refer to Figure: The Money Supply and Aggregate Demand. If the Federal Reserve intended to encourage investment and interest rates. This is shown in the money supply, and Treasury bills, expand the economy, it would panel buy; increase; lower; (a) buy; decrease; lower; (a)...
Price Level LRAS SRAS 125 -- AD2 120 i E11 - AD 12.0 12.2 Real GDP in Trillions Does the graph above reflect a Classical Model or a Keynesian Model? How do you know? What is happening in this economy in the short run? Note: This is nit a group discussion. All posts must be made individually.
Figure 16-1 Price level LRAS SRAS D AD AD AD Real GDP Refer to Figure 16-1. Suppose the economy is in short-run equilibrium above potential GDP and automatic stabilizers move the economy back to long-run equilibrium. Using the static AD- AS model in the figure above, this would be depicted as a movement from OD to C Eto A. B to A A to E. Cto B.
(Figure: Determining SRAS Shifts) If there is a decrease in input prices, the short-run aggregate supply curve will shift from SRAS, to _____ and the price level will shift to SRASZ SRAS. SRAS, P2 Aggregate Price Level (P) РО PL AD 0 Q2 QO Q Aggregate Output (Q) SRAS1: P1 SRAS2: P2
Use the following to answer questions 6-7: Figure: Determining Fiscal Policy LRAS SRAS AD Aggregate Price Level (P) Aggregate Output (Q) 6. (Figure: Determining Fiscal Policy) Expansionary fiscal policies could: A) move the economy to full employment. B) move the economy away from full employment. C) lead to a lower price level. D) lead to a lower price level and lower unemployment. 7. (Figure: Determining Fiscal Policy) The best discretionary fiscal policy option is: A) expansionary fiscal policy that leads...
(Figure: AD– AS Model II) Refer to Figure:
AD– AS Model II. If the value of household wealth
increases, the _____ curve will shift to the _____.
A.
SRAS; right
B.
SRAS; left
C.
AD; left
D.
AD; right
Aggregate price level LRAS SRAS1 E1 P1 AD1 Y, = potential output Real GDP
1.
.
(Figure: Determining SRAS Shifts) If there are advances in
technology, the short-run aggregate supply curve will shift from
SRAS0 to _____ and the price level will shift to
_____.
SRAS1; P0
SRAS2; P2
SRAS2; P1
SRAS1; P1
2.
Simultaneous recession and deflation can be explained by:
a decrease in aggregate supply.
an increase in aggregate supply.
a decrease in aggregate demand.
an increase in aggregate demand.
3.
Which is a determinant of aggregate supply?
household expectations
prices of...
Question 56 (1 point) Consider the aggregate supply-aggregate demand model. How does an increase in aggregate demand affect the unemployment rate and the inflation rate? LRAS: SRAS Price level (GDP deflator 2009 = 100) AD AD AD GDP, GDP, GDP AD AD AD2 GDP, GDP, GDP; Real GDP (trillions of 2009 dollars) The unemployment rate decreases and the inflation rate increases. ia The unemployment rate increases and the inflation rate decreases. Both the unemployment rate and the inflation rate increase....
New LRAS, SRAS, and AD lines in the graph for the next
year:
Price level The following graph shows an economy in long-run macroeconomic equilibrium. All the usual assumptions of the dynamic demand and supply model hold Firms and workers expect there to be a decline in the inflation rate in the coming year LRAS, SRAS Use the line tool to draw three lines 1) the new LRAS, 2) the new SRAS, and 3) the new AD line in the...
Price ↑ Leve LRAS SRAS2 SRAS Ps P2 AD Y1 Quantity of Output Refer to Figure 33-11. A movement from P, and Y2, to P2 and Y, would be consistent with a decrease in consumption expenditures stagflatiorn sticky-wages an increase in net exports.
Price ↑ Leve LRAS SRAS2 SRAS Ps P2 AD Y1 Quantity of Output Refer to Figure 33-11. A movement from P, and Y2, to P2 and Y, would be consistent with a decrease in consumption expenditures stagflatiorn...
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