In the aggregate demand and aggregate supply model, a. the factors that cause the individual supply curve to slope upward are the same as the factors that cause the short-run aggregate supply curve to slope upward. b. the upward-sloping short-run aggregate supply curve intersects the downward-sloping aggregate demand curve to determine the economy's price level and GDP. c. the factors that cause the individual demand curve to slope downward are the same as the factors that cause the aggregate demand...
In the extended analysis of aggregate supply, the short-run aggregate supply curve is Multiple Choice 0 upsloping and the long-run aggregate supply curve is vertical. 0 vertical and the long-run aggregate supply curve is horizontal 0 horizontal and the long-run aggregate supply curve Is upsloping. 0 horizontal and the long-run aggregate supply curve Is vertical.
Question 5 In the aggregate supply and aggregate model, the shapes of the aggregate supply and aggregate demand curves are built: on the relationship between the price level and total output. upon the relationship between a single good and its price. upon the principle of opportunity cost. upon the principle of substitution Question 6 When prices in the United States drop, this will cause foreigners to: substitute U.5. goods for their own domestically produced goods. o buy fewer U.S. goods....
A supply shock causes a shift in: a. long-run aggregate supply. b. aggregate demand. c. short-run and long-run aggregate supply. d. short-run aggregate supply. e. aggregate demand and short-run aggregate supply. Consider the exhibit below for the following questions. Figure 20-1 Refer to Figure 20-1. The economy would be moving to long-run equilibrium if it started at a. A and moved to B. b. C and moved to B. c. D and moved to C. d. None of the above...
An adverse supply shock would shift: a. only the long-run aggregate supply curve inward. b. only the short-run aggregate supply curve inward. c. both the long-run and the short-run aggregate supply curves inward. d. only the short-run aggregate supply curve outward. e. only the long-run aggregate supply curve outward.
When taxes are cut, aggregate demand ________ and aggregate supply ________. A. decreases; decreases B. increases; does not change C. decreases; increases D. increases; increases E. increases; decreases e
Using the aggregate demand (AD), the short-run aggregate supply (SRAS), and the long-run aggregate supply (LRAS) curves, briefly explain how an open market purchase will affect the equilibrium price level (P) and real output (Y) in the short run. Assume the economy is initially in a recession?
Times New ... - E EEE ECONOMIC SCENARIO Aggregate demand and aggregate supply curves shift for different reasons than individual demand and individual supply curves. From America, exports have increased tremendously in the past year. Unemployment is very low, American living standards have increased, and the US Dollar has decreased against several major currencies. Considering the above information, please answer the questions below. 1. How does a currency that is down against other currencies hurt America? Or, does it not...
At points on the short-run aggregate supply curve, but to the right of the long-run aggregate supply curve, resources are: A. over-utilized, making it more likely that the short-run aggregate supply curve will shift up (to the left) B. over-utilized, making it more likely that the short-run aggregate supply curve will shift down (to the right) ° C. under-utilized, making it more likely that the short-run aggregate supply curve will shift up (to the left) D. under-utilized, making it more...
Stagflation is most likely to occur during __________. A. Aggregate Supply-driven expansions B. Aggregate Supply-driven recessions C. Aggregate Demand-driven expansions D. Aggregate Demand-driven recessions