Homework Answers
Answer:
Correct answer: C] Demand side Inflation
Explanation:
Whenever the general level of prices rises because of continual increases in aggregate demand, we say that the economy is experiencing Demand side Inflation. Demand side inflation occurs when increase in aggregate demand is not matched by increase in aggregate supply. So price level has to rise. Inflation and real GDP rises unemployment falls.
Add Answer to:
Whenever the general level of prices rises because of continual increases in aggregate demand, we say...
1. Which of the following is not a property of the aggregate demand curve? It shows...
1. Which of the following is not a property of the aggregate demand curve? It shows the relationship between the overall price level and level consumption. It shows the price level on the vertical axis and output on the horizontal axis. The aggregate demand curve slopes downward. It shows the relationship between the overall price level and the level of total demand. 2. When the price level increases people: feel more wealthy. have the same real value of assets, regardless...
Complete the sentences. Aggregate demand increases if expected future income, inflation, or profits And aggregate demand...
Complete the sentences. Aggregate demand increases if expected future income, inflation, or profits And aggregate demand increases if fiscal policy government expenditure. SA O A. decrease; increases O B. increase; decreases OC. decrease, decreases OD. increase: increases Aggregate demand increases if fiscal policy transfer payments O A. decreases; increases OB. increases; increases O C. increases; decreases OD. decreases, decreases Aggregate demand increases if monetary policy the quantity of money and interest rates Click to select your answer. Complete the sentences....
Explain the effect of each of the following events on Mexico's aggregate demand. If the government...
Explain the effect of each of the following events on Mexico's aggregate demand. If the government of Mexico cuts income taxes, Mexico's aggregate demand O A. increases, and the aggregate demand curve shifts leftward O B. increases, and the aggregate demand curve shifts rightward O C. is unchanged, but the price level falls and quantity of real GDP demanded increases OD. decreases because it decreases the amount the government can spend O E. is unchanged because it just decreases the...
2. When aggregate demand increases, what happens to prices and employment? a. Prices will fall and...
2. When aggregate demand increases, what happens to prices and employment? a. Prices will fall and unemployment will rise. b. Prices and unemployment fall. Prices and unemployment rise. d. Prices will rise and unemployment will fall. c. Figure 16-1 a Price Level Inflation Rate c d e 3 Output Unemployment 3. Refer to the Figure 16-1. If the economy starts at c and 1, then in the short run, where does an increase in government expenditures move the economy? a....
because along it, as prices rise, the money wage The long-run aggregate supply curve is rate...
because along it, as prices rise, the money wage The long-run aggregate supply curve is rate O A. vertical, rises O B. vertical falls O c. upward sloping, falls O D. upward sloping, stays constant When the price lehel rises and simultaneously there is a decrease in real GDP, O A. the natural unemployment rate increases OB. the Fed has increased the discount rate O c. stagflation occurs O D. there is an expansionary gap.
Suppose that aggregate demand increases such that the amount of real output demanded rises by $7 billion at each price level
Refer to the table below Suppose that aggregate demand increases such that the amount of real output demanded rises by $7 billion at each price levela. By what percentage will the price level increase?Will this inflation be demand-pull inflation or will it be
cost-push inflation?b. If potential real GDP (that is, full-employment GDP) is $510
billion, what will be the size of the positive GDP gap after the
change in aggregate demand?c. If government wants to use fiscal policy to counter...
5) If consumption increases by $200 and, in response, equilibrium aggregate expenditure increases by $600, the...
5) If consumption increases by $200 and, in response, equilibrium aggregate expenditure increases by $600, the multiplier is A) 5 B) 0.5.C)2. D) 0.3. 6) When the GDP in Kuwait rises relative to the GDP in other countries, will fall and will fall A) exports; imports B) exports; net exports C) imports; net exports D) net exports; imports 7) An increase in the price level will A) shift the aggregate demand curve to the left. B) shift the aggregate demand...
Long run aggregate supply is the relationship between the quantity of real GDP supplied and the...
Long run aggregate supply is the relationship between the quantity of real GDP supplied and the price level when the maintain full employment changes in step with the price level to O A. money wage rate OB. quantity of money OC. real wage rate OD. interest rate supplied and the when the money wage rate, the prices of other resources and Short run aggregate supply is the relationship between the quantity of potential GDP remain constant O A real GDP...
1. Modern macroeconomists tend to believe that an increase in aggregate spending A) increases real output,...
1. Modern macroeconomists tend to believe that an increase in aggregate spending A) increases real output, especially in a depressed economy with lots of excess capacity, but also increases the price level, especially in an economy with little excess capacity B) always increases real output without affecting the price level as the simplest version of the "Keynesian cross" model with a fixed price level impliesalways increases real output without affecting the price level as the simplest version of the "Keynesian...
How does cost push inflation begin? A cost-push inflation begins with as the result of an...
How does cost push inflation begin? A cost-push inflation begins with as the result of an increase in the money wage rate or an increase in the money prices of raw materials O A. an increase in aggregate demand OB. a decrease in short-run aggregate supply O C. an increase in short-run aggregate supply OD. a decrease in aggregate demand Explain for each event whether it changes the quantity of real GDP supplied, short-run aggregate supply, long run aggregate supply,...
Complete the sentences. Aggregate demand increases if expected future income, inflation, or profits And aggregate demand increases if fiscal policy government expenditure. SA O A. decrease; increases O B. increase; decreases OC. decrease, decreases OD. increase: increases Aggregate demand increases if fiscal policy transfer payments O A. decreases; increases OB. increases; increases O C. increases; decreases OD. decreases, decreases Aggregate demand increases if monetary policy the quantity of money and interest rates Click to select your answer. Complete the sentences....
Explain the effect of each of the following events on Mexico's aggregate demand. If the government of Mexico cuts income taxes, Mexico's aggregate demand O A. increases, and the aggregate demand curve shifts leftward O B. increases, and the aggregate demand curve shifts rightward O C. is unchanged, but the price level falls and quantity of real GDP demanded increases OD. decreases because it decreases the amount the government can spend O E. is unchanged because it just decreases the...
2. When aggregate demand increases, what happens to prices and employment? a. Prices will fall and unemployment will rise. b. Prices and unemployment fall. Prices and unemployment rise. d. Prices will rise and unemployment will fall. c. Figure 16-1 a Price Level Inflation Rate c d e 3 Output Unemployment 3. Refer to the Figure 16-1. If the economy starts at c and 1, then in the short run, where does an increase in government expenditures move the economy? a....
because along it, as prices rise, the money wage The long-run aggregate supply curve is rate O A. vertical, rises O B. vertical falls O c. upward sloping, falls O D. upward sloping, stays constant When the price lehel rises and simultaneously there is a decrease in real GDP, O A. the natural unemployment rate increases OB. the Fed has increased the discount rate O c. stagflation occurs O D. there is an expansionary gap.
5) If consumption increases by $200 and, in response, equilibrium aggregate expenditure increases by $600, the multiplier is A) 5 B) 0.5.C)2. D) 0.3. 6) When the GDP in Kuwait rises relative to the GDP in other countries, will fall and will fall A) exports; imports B) exports; net exports C) imports; net exports D) net exports; imports 7) An increase in the price level will A) shift the aggregate demand curve to the left. B) shift the aggregate demand...
Long run aggregate supply is the relationship between the quantity of real GDP supplied and the price level when the maintain full employment changes in step with the price level to O A. money wage rate OB. quantity of money OC. real wage rate OD. interest rate supplied and the when the money wage rate, the prices of other resources and Short run aggregate supply is the relationship between the quantity of potential GDP remain constant O A real GDP...
How does cost push inflation begin? A cost-push inflation begins with as the result of an increase in the money wage rate or an increase in the money prices of raw materials O A. an increase in aggregate demand OB. a decrease in short-run aggregate supply O C. an increase in short-run aggregate supply OD. a decrease in aggregate demand Explain for each event whether it changes the quantity of real GDP supplied, short-run aggregate supply, long run aggregate supply,...
Most questions answered within 3 hours.
-
The price of 1 lb of potatoes is $1.75. If all the potatoes sold
today at...
asked 39 minutes ago -
Garcia Company issues 20.00%, 15-year bonds with a par value of
$470,000 and semiannual interest payments....
asked 37 minutes ago -
In C++ Programming, Try using loops only.
This lab demonstrates the use of the While Loop...
asked 1 hour ago -
Effect of DCMU and sodium azide on Chlamydomonas? We did an
experiment where we had Chlamydomonas...
asked 2 hours ago -
1a) According to the ideal gas law, _______________.
a. a gas has infinite volume at absolute...
asked 3 hours ago -
Oakdale Fashions, Inc. had $245,000 in 2018 taxable income.
Using the tax schedule in Table 2.3...
asked 4 hours ago -
The marketing class at CSUS had an average score of 150. An
educational analyst determined that...
asked 5 hours ago -
Justin Case has purchased a $250 000 home by putting 20 % down
and taking out...
asked 5 hours ago -
1. In a labor market, marginal cost for a firm is
____________.
a. recruiting cost
b....
asked 6 hours ago -
On January 1, 2019, ABC Company issued $60,000,000 of 20-year,
10.5% bonds when the market rate...
asked 6 hours ago -
39.4% of US homes continue to use a landline in addition to cell
phone service. 3...
asked 7 hours ago -
Starting with benzene, synthesize 1-phenyl-1-butyne.
Show intermediates and reagents.
asked 7 hours ago