Homework Answers
Answer 1)
In long run AS curve is vertical
At point A, SRAS1 & AD1 intersects, now with increase in govt spending, AD shifts to AD2, AS curve remains unchanged at SRAS1 , so new equilibrium at point B & in long run we move to point E on the long run AS curve.
Answer 2) now increase in oil prices, the it's a supply side shock, so upward shift in supply curve to SRAS3, unchanged AD curve at AD1, so we move to point F & in long run to point E. Bcoz in long run , price level is higher than the initial equilibrium level
answer 3) at point F, SRAS3 cuts with AD1, short run equilibrium GDP is below than the long run potential level , at which LRAS is vertical, so economy is expected to shift to the LRAS either at point A or E.
Add Answer to:
12. (5 points) Price level LRAS SRAS3 SRAS1 SRAS2 AD AD1 Real GDP i. Based on...
Figure: Monetary Policy 2 LRAS SRAS C Price level a AD b yf Real GDP Goods...
Figure: Monetary Policy 2 LRAS SRAS C Price level a AD b yf Real GDP Goods and services market Refer to Figure: Monetary Policy 2. If an economy operates in the short run at point a, then if the government were to raise the required reserve ratio, then we should expect a/an decrease in SRAS, which moves the economy toward point. Уf Real GDP Goods and services market Refer to Figure: Monetary Policy 2. If an economy operates in the...
LRAS SRAS с Price level AD b Уf Real GDP Goods and services market Refer to...
LRAS SRAS с Price level AD b Уf Real GDP Goods and services market Refer to Figure: Fiscal Policy 2. If an economy operates in the short run at point a, then if the government were to implement contractionary fiscal policy. then we should expect a/an decrease in SRAS, which moves the economy toward pointc. increase in AD, which moves the economy toward point decrease in AD, which moves the economy toward point b. ZIL P Yf Real GDP Goods...
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.
ce Level Long Run Aegregate Supply 110 LRAS 1 105 100 95 13 5 14.5 15.5...
ce Level Long Run Aegregate Supply 110 LRAS 1 105 100 95 13 5 14.5 15.5 165 Real GDP or Output amlbon of 2009 dollars Refer to the economic model pictured above: Decrease in price levels from 105 to 100 will cause Real GDP to O remain constant in the long run increase to 16.5 trillion in the long run O decrease to 13.5 trillion in the long run O increase to 15.5 trillion in the long run Price Level...
question/104241782 Refer to the following figure to answer the next two questions. Price level LRAS, LRAS,...
question/104241782 Refer to the following figure to answer the next two questions. Price level LRAS, LRAS, (P) Time Runn Attempt due 1 Hour, 12 SRAS, SRAS, AD Real GDP Based on the figure, which of the following would cause the short-run aggregate supply curve to shift from SRASto SRAS2? A temporary rise in the price of oil results in higher gasoline prices. Congress votes to increase the minimum wage. Wages and input prices fall as the economy recovers from a...
LRAS SRAS Price level AD Real GDP Goods and services market If the economy were operating...
LRAS SRAS Price level AD Real GDP Goods and services market If the economy were operating at point a in Figure 10-8, the real rate of interest would tend to decrease and move the economy toward point b. increase and move the economy toward pointc. increase and move the economy toward point b. decrease and move the economy toward pointc.
LRAS 150-n 1301 11아- Aggregate Deri 10 11 12 Real GDP per Year (S trillions) In the above figure...
LRAS 150-n 1301 11아- Aggregate Deri 10 11 12 Real GDP per Year (S trillions) In the above figure, the long-run equilibrium price level is Price Level AD2 AD1 Real GDP per Year in the above figure a movement from point B to point A can be explained by In the above figure, a movement from point B to point A can be explained by 1) a drop in the price level. 2) an increase in spending due to a...
1. Suppose natural resources increase, which curve(s) in an AD-AS graph shift(s) to which direction? 2....
1. Suppose natural resources increase, which curve(s) in an AD-AS graph shift(s) to which direction? 2. Steve owns a bike shop. He increases the size of his shop. This action is related to which factor of economic growth? ((1) natural resources; (2) physical capital; (3) human capital; (4) technology; or (5) institutions ) 3. When price level increases by 10 percent, how much does the quantity of long-run aggregate supply increase? Refer to the following figure to answer question 4...
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.
Price Level LRAS SRAS AD AD AD Yo Y Yo Yo If the economy in the...
Price Level LRAS SRAS AD AD AD Yo Y Yo Yo If the economy in the graph shown is currently at point B, and the government enacts contractionary fiscal policy, in the short run the economy will most likely move to point Multiple Choice o o It is likely to be unaffected and stay at point B o o
Figure: Monetary Policy 2 LRAS SRAS C Price level a AD b yf Real GDP Goods and services market Refer to Figure: Monetary Policy 2. If an economy operates in the short run at point a, then if the government were to raise the required reserve ratio, then we should expect a/an decrease in SRAS, which moves the economy toward point. Уf Real GDP Goods and services market Refer to Figure: Monetary Policy 2. If an economy operates in the...
LRAS SRAS с Price level AD b Уf Real GDP Goods and services market Refer to Figure: Fiscal Policy 2. If an economy operates in the short run at point a, then if the government were to implement contractionary fiscal policy. then we should expect a/an decrease in SRAS, which moves the economy toward pointc. increase in AD, which moves the economy toward point decrease in AD, which moves the economy toward point b. ZIL P Yf Real GDP Goods...
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.
ce Level Long Run Aegregate Supply 110 LRAS 1 105 100 95 13 5 14.5 15.5 165 Real GDP or Output amlbon of 2009 dollars Refer to the economic model pictured above: Decrease in price levels from 105 to 100 will cause Real GDP to O remain constant in the long run increase to 16.5 trillion in the long run O decrease to 13.5 trillion in the long run O increase to 15.5 trillion in the long run Price Level...
question/104241782 Refer to the following figure to answer the next two questions. Price level LRAS, LRAS, (P) Time Runn Attempt due 1 Hour, 12 SRAS, SRAS, AD Real GDP Based on the figure, which of the following would cause the short-run aggregate supply curve to shift from SRASto SRAS2? A temporary rise in the price of oil results in higher gasoline prices. Congress votes to increase the minimum wage. Wages and input prices fall as the economy recovers from a...
LRAS SRAS Price level AD Real GDP Goods and services market If the economy were operating at point a in Figure 10-8, the real rate of interest would tend to decrease and move the economy toward point b. increase and move the economy toward pointc. increase and move the economy toward point b. decrease and move the economy toward pointc.
LRAS 150-n 1301 11아- Aggregate Deri 10 11 12 Real GDP per Year (S trillions) In the above figure, the long-run equilibrium price level is Price Level AD2 AD1 Real GDP per Year in the above figure a movement from point B to point A can be explained by In the above figure, a movement from point B to point A can be explained by 1) a drop in the price level. 2) an increase in spending due to a...
1. Suppose natural resources increase, which curve(s) in an AD-AS graph shift(s) to which direction? 2. Steve owns a bike shop. He increases the size of his shop. This action is related to which factor of economic growth? ((1) natural resources; (2) physical capital; (3) human capital; (4) technology; or (5) institutions ) 3. When price level increases by 10 percent, how much does the quantity of long-run aggregate supply increase? Refer to the following figure to answer question 4...
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.
Price Level LRAS SRAS AD AD AD Yo Y Yo Yo If the economy in the graph shown is currently at point B, and the government enacts contractionary fiscal policy, in the short run the economy will most likely move to point Multiple Choice o o It is likely to be unaffected and stay at point B o o
Most questions answered within 3 hours.
-
In 1970s and 1980s, molecular biologists discovered that the
hormone testosterone, binds a receptor protein that...
asked 1 hour ago -
january 1 2010 road catering service purchase a piece of
equipment for 58000 which is expected...
asked 1 hour ago -
Explain Mertons concept of anomie is and what the
modes of adaptation to it are?
asked 2 hours ago -
Jamie is doing a survey at her school about whether the students
feel the cafeteria food...
asked 3 hours ago -
How many liters of 0.669 M KOH will be needed to raise the pH of
0.339...
asked 6 hours ago -
A liquid of density 1270 kg/m 3 flows steadily through a pipe of
varying diameter and...
asked 6 hours ago -
Questions: What should the American executive do?
'A visiting American executive finds that a foreign subsidiary...
asked 6 hours ago -
Activity based costing was introduced as an alternative to
absorption costing.
1. Discuss using illustration the...
asked 6 hours ago -
1. You own shares of Crane DVD Company and are interested in
selling them. With so...
asked 6 hours ago -
How many grams of He are necessary to fill a balloon having a
volume of 4.5E3...
asked 6 hours ago -
The 2 patients, still in the hospital, were interviewed by a
MoH epidemiologist. The interviews revealed...
asked 6 hours ago -
An uncharged capacitor and a resistor are connected in series to
a source of emf. If...
asked 6 hours ago