ZuoTi.Pro
Question

The graph below depicts the aggregate demand, Irrun aggregate supply, and short-run aggregate supply curves for the United St
Price level Price level (P) (P) URAS LRAS, LRAS SRAS SRAS SRAS SRAS AD AD Real GDP Real GDP (Y) D Price level ) Pricevere Pri


B) in the short run in the long run in the short run in the long run real GDP / decreases (1) stay the same real GDP) decreas
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Ans - B) The graph B depicts the situation.

Explanation:

As the institute deteriorate, it leads to reduce the aggregate supply curve in both short run as well as long run, so SRAS shift leftward to SRAS2 and LRAS shift leftward to LRAS2.

While the governmnet spending increase so the Ad curve shift rightward to AD2.

0 0
Add a comment
Know the answer?
Add Answer to:
The graph below depicts the aggregate demand, Irrun aggregate supply, and short-run aggregate supply curves for...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Using the aggregate demand (AD), the short-run aggregate supply (SRAS), and the long-run aggregate supply (LRAS)...

    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?

  • Using aggregate demand (AD), short-run aggregate supply (SRAS) and long-run aggregate supply (LRAS) curves

    Question 1: AD-SRAS-LRAS Model Using aggregate demand (AD), short-run aggregate supply (SRAS) and long-run aggregate supply (LRAS) curves, graphically illustrate the effect of an increase in the money supply on output and prices in the short and long run. Assume that the economy is initially in long run equilibrium at the potential output level and prices are fixed in the short-run. In your graph, label "A" for the initial equilibrium, "B' for the short-run equilibrium, and "C" for the long-run equilibrium.

  • Update the graph below to show an increase in short run aggregate supply and show what...

    Update the graph below to show an increase in short run aggregate supply and show what effect this increase in increase short run aggregate supply will have on price levels and real GDP. 1. Price level SRAS AD Real GDF 2. Assume that a recessionary gap currently exists. If long-run supply (aka, potential output) increases and there is no change to aggregate demand or short run aggregate supply what happens to real GDP and to the recessionary gap?

  • ()​-run equilibrium occurs at the intersection of the aggregate demand​ curve, ​AD, and the​ short-run aggregate...

    ()​-run equilibrium occurs at the intersection of the aggregate demand​ curve, ​AD, and the​ short-run aggregate supply​ curve, SRAS.() ▼ Long Short ​-run equilibrium occurs at the intersection of AD and the​ long-run aggregate supply​ curve, LRAS. Any unanticipated shifts in aggregate demand or supply are called aggregate demand or aggregate supply() ▼ shocks externalities . When aggregate demand decreases while aggregate supply is​ stable,() ▼ a recessionary an inflationary gap can​ occur, defined as the difference between how much...

  • The graphs illustrate an initial equilibrium for the economy. Suppose that oil prices temporarily decrease Use...

    The graphs illustrate an initial equilibrium for the economy. Suppose that oil prices temporarily decrease Use the graphs to show the new positions of aggregate demand (AD), short-run aggregate supply (SRAS), and long-run aggregate supply (LRAS) in both the short run and the long run, as well as the short-run and long-run equilibriums resulting from this change. Then, indicate what happens to the price level and GDP in the short run and in the long run. Short-run graph Long-run graph...

  • 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...

  • The graph depicts a dynamic aggregate demand (AD) and aggregate supply (AS) model of the economy....

    The graph depicts a dynamic aggregate demand (AD) and aggregate supply (AS) model of the economy. Suppose that in 2003, the economy is in macroeconomic equilibrium, with GDP at GDP (year 1). The Fed projects that in 2004, the aggregate demand curve will be AD (year 2), that potential real GDP will be $12.45 trillion (GDP (year 2), and that actual real GDP will be $12.39 trillion LRAS (year 1) LRAS (year 2) SRAS (ycar1) SRAS (year 2 ear Year...

  • graph requires adjustment Question 8 of 16 > The accompanying graphs illustrate an initial equilibrium for...

    graph requires adjustment Question 8 of 16 > The accompanying graphs illustrate an initial equilibrium for the economy. Suppose that a snowstorm destroys a large number of corn crops. Use the graphs to show the new positions of aggregate demand (AD), short-run aggregate supply (SRAS), and long-run aggregate supply (LRAS) in both the short-run and the long-run, as well as the short-run (Esr) and long-run (Eur) equilibria resulting from this change. Then answer what happens to the price level and...

  • Check And < Question 11 of 13 > The graphs below illustrate an initial equilibrium for...

    Check And < Question 11 of 13 > The graphs below illustrate an initial equilibrium for the economy. Suppose that investment spending falls. Use the graphs to show the new positions of aggregate demand (AD), short-run aggregate supply (SRAS), and long-run aggregate supply (LRAS) in both the short-run and the long-run, as well as the short-run and long-run equilibria resulting from this change. Then answer what happens to the price level and GDP. Short-run graph SRAS Short-run equilibrium Aggregate price...

  • Aggregate Market Assignment 1. Update the graph below to show an increase in short run aggregate...

    Aggregate Market Assignment 1. Update the graph below to show an increase in short run aggregate supply and show what effect this increase in Increase short run aggregate supply will have on price levels and real GDP. Price Tevel SRAS I AD Real GDP 2. Assume that a recessionary gap currently exists. If long-run supply (aka, potential output) increases and there is no change to aggregate demand or short run aggregate supply what happens to real GDP and to the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT