What does the vertical slope of the long-run aggregate supply curve mean? no matter what the...
What does the vertical slope of the long-run aggregate supply curve mean?
|
no matter what the Real GDP, the price level is always the same |
||
|
Real GDP always increases and never falls |
||
|
Real GDP always converges to the same value in the long run |
||
|
The price level is not a factor determining long-run aggregate supply |
Homework Answers
The vertical slope of the long-run aggregate supply curve means the price level is not a factor determining long-run aggregate supply
Ans is d) the price level is not a factor determining long-run aggregate supply.
Explanation:
The long-run aggregate supply curve is vertical (at the full-employment or potential output). It is so because the economy's potential output is determined by the availability and productivity of real resources, not by the price level.
Add Answer to:
What does the vertical slope of the long-run aggregate
supply curve mean?
no matter what the...
The long-run aggregate supply curve is vertical because Select one: a. potential GDP is independent of...
The long-run aggregate supply curve is vertical because Select one: a. potential GDP is independent of the price level. ob. actual output can never exceed, even temporarily, the output rate implied by the economy's long-run aggregate supply curve. c. a vertical long-run aggregate supply curve indicates the maximum output rate that an economy can ever reach. d. a vertical long-run supply curve indicates that an increase in aggregate demand will lead to a
Describe the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve. A. the...
Describe the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve. A. the SRAS curve is horizontal and the LRAS curve is upward sloping B. the SRAS curve is horizontal and the LRAS curve is vertical C. the SRAS curve is vertical and the LRAS curve is horizontal D. the SRAS curve is vertical and the LRAS curve is upward sloping Why is the short-run aggregate supply curve horizontal? A. because output is fixed in the short...
QUESTION 25 Which of the following best describes the long run in terms of aggregate supply?...
QUESTION 25 Which of the following best describes the long run in terms of aggregate supply? a. The long-run aggregate supply curve is horizontal. b. The long-run aggregate supply slopes upwards, but is NOT vertical. c. The long-run aggregate supply slopes downwards. d. The long-run aggregate supply curve is vertical. Question 39 Which of the following best characterizes market equilibrium? a. when there is no incentive for consumers or producers to change their current behaviour b. when producers earn profits...
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.
The aggregate-demand curve Group of answer choices is vertical in the long run. has a slope...
The aggregate-demand curve Group of answer choices is vertical in the long run. has a slope that is explained in the same way as the slope of the demand curve for a particular product. All of the above are correct. shows an inverse relation between the price level and the quantity of all goods and services demanded.
The graph below depicts the aggregate demand, Irrun aggregate supply, and short-run aggregate supply curves for...
The graph below depicts the aggregate demand, Irrun aggregate supply, and short-run aggregate supply curves for the United States at an initial long-run macroeconomic equilibrium Price level] (P) LRAS SRAS Real GDP Consider a situation in which two things happen simultaneously: there is a deterioration of institutions, and the federal government massively increases spending. Which of the graphs below illustrates the shifts in this model given this situation? Price level Price level (P) (P) URAS LRAS, LRAS SRAS SRAS SRAS...
The long run aggregate supply curve is perfectly vertical to both the RBC and New keynesian...
The long run aggregate supply curve is perfectly vertical to both the RBC and New keynesian models of inflation and economic growth. this implies that a. inflation and long run supply and positively correlated b. sthe slope of the LRAS curve is negative c. there is no relationship between long run growth and inflation d. all of the possible choices are correct money neutrality implies that a. all the possible choices are correct b. increaes in the money supply have...
1. In addition to the price level, what does the aggregate demand and aggregate supply model...
1. In addition to the price level,
what does the aggregate demand and aggregate supply model focus
on?
a. real
GDP
b.
nominal GDP
c.
the real interest rate
d. stock
prices
2. Which statement best characterizes the long-run
aggregate-supply curve?
a. It is
horizontal.
b. It
shows a positive relationship between price level and output.
c.
It demonstrates the importance of money in the economy....
Sticky wages cause the: Multiple Choice long-run aggregate supply curve to slope upward. short-run aggregate supply...
Sticky wages cause the: Multiple Choice long-run aggregate supply curve to slope upward. short-run aggregate supply curve to slope downward. long-run aggregate supply curve to slope downward. short-run aggregate supply curve to slope upward.
8. The long run aggregate supply curve is a vertical line. It is so because it...
8. The long run aggregate supply curve is a vertical line. It is so because it has nothing to do with the price level. It is rather determined by availability of economic resources and technology. How will the followings shift the long run aggregate supply (LRAS) curve? to the right to the left? a climate change permanently reduces the amount of land that can be farmed. b. immigration increases the available supply of labor. c. ageing population takes workers out...
The long-run aggregate supply curve is vertical because Select one: a. potential GDP is independent of the price level. ob. actual output can never exceed, even temporarily, the output rate implied by the economy's long-run aggregate supply curve. c. a vertical long-run aggregate supply curve indicates the maximum output rate that an economy can ever reach. d. a vertical long-run supply curve indicates that an increase in aggregate demand will lead to 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.
The graph below depicts the aggregate demand, Irrun aggregate supply, and short-run aggregate supply curves for the United States at an initial long-run macroeconomic equilibrium Price level] (P) LRAS SRAS Real GDP Consider a situation in which two things happen simultaneously: there is a deterioration of institutions, and the federal government massively increases spending. Which of the graphs below illustrates the shifts in this model given this situation? Price level Price level (P) (P) URAS LRAS, LRAS SRAS SRAS SRAS...
1. In addition to the price level,
what does the aggregate demand and aggregate supply model focus
on?
a. real
GDP
b.
nominal GDP
c.
the real interest rate
d. stock
prices
2. Which statement best characterizes the long-run
aggregate-supply curve?
a. It is
horizontal.
b. It
shows a positive relationship between price level and output.
c.
It demonstrates the importance of money in the economy....
Sticky wages cause the: Multiple Choice long-run aggregate supply curve to slope upward. short-run aggregate supply curve to slope downward. long-run aggregate supply curve to slope downward. short-run aggregate supply curve to slope upward.
8. The long run aggregate supply curve is a vertical line. It is so because it has nothing to do with the price level. It is rather determined by availability of economic resources and technology. How will the followings shift the long run aggregate supply (LRAS) curve? to the right to the left? a climate change permanently reduces the amount of land that can be farmed. b. immigration increases the available supply of labor. c. ageing population takes workers out...
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