ZuoTi.Pro
Question

o e. slopes downward and to the right Refer to the diagram. If the initial aggregate demand and supply curves are ADO and ASO
business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

The output is determined where the aggregate demand equals the aggregate supply. In this given graph the initial equilibrium was at the intersection of AD0 and AS0 curves. The initial equilibrium price is F and the quantity of output equals C, then there is the change in both aggregate demand and supply. The aggregate demand and the aggregate supply has decreased, so there is the leftward shift in both curves. So here the equilibrium price level hasn't changed and the quantity of output decreased.

Ans: b). F and A respectively.

0 0
Add a comment
Know the answer?
Add Answer to:
o e. slopes downward and to the right Refer to the diagram. If the initial aggregate...
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

  • Question 48 (1 point) Use the following graph to answer the next question. AS, AS. (H...

    Question 48 (1 point) Use the following graph to answer the next question. AS, AS. (H Price Level E AD. 0 AD A B C Real Domestic Output Other things equal, a shift of the aggregate supply curve from ASo to AS1 might be caused by a(n) Other things equal, a shift of the aggregate supply curve from ASo to AS1 might be caused by an) OA) decrease in nominal wages B) increase in productivity C) decrease in aggregate demand...

  • Question 21 1 pts Use the following table which shows the aggregate demand and aggregate supply...

    Question 21 1 pts Use the following table which shows the aggregate demand and aggregate supply schedule for a hypothetical economy to answer the next question. Real Domestic Output Demanded Price Level Real Domestic Output Supplied (in billions) (index value) (in billions) $3,000 350 $9,000 4,000 300 8,000 5,000 250 7,000 6,000 200 6,000 7,000 150 5,000 8,000 100 4,000 At the price level of 150, there will be a general surplus in the economy, and output supplied will decrease...

  • Po and the aggreg Po and the aggregate demand curve is ADO Po and the aggregate...

    Po and the aggreg Po and the aggregate demand curve is ADO Po and the aggregate demand curve is AD1. o oo P1 and the aggregate demand curve is ADO. C) P1 and the aggregate demand curve is AD1. Refer to the graph shown. In the graph, a recessionary gap exists if the price level is: LAS Price Level PoE----- AD ADO Real Output Multiple Choice Po and the aggregate demand curve is ADO. Po and the aggregate demand curve...

  • AS2 AS1 ASo Aggregate output Figure 8: 41. Refer to Figure: 8. The aggregate supply curve...

    AS2 AS1 ASo Aggregate output Figure 8: 41. Refer to Figure: 8. The aggregate supply curve shifting from AS1 to AS2 will cause 41.- A. hyperinflation. B. cost-push inflation. C. demand-pull inflation. D. deflation. 42. If a country has a trade deficit of $50 billion, which of the following can be true? A. The country's exports are $110 billion, and its imports are S160 billion. B. The country's exports are $150 billion, and its imports are $60 billion. C. The...

  • Which of the following help to explain why the aggregate demand curve slopes downward?

    Which of the following help to explain why the aggregate demand curve slopes downward? Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers. When the domestic price level rises, our goods and services become more expensive to foreigners When government spending rises, the price level falls There is an inverse relationship between consumer expectations and personal taxes When the price level rises, the real value of...

  • In the graph, the initial aggregate supply curve is AS and the initial aggregate demand curve...

    In the graph, the initial aggregate supply curve is AS and the initial aggregate demand curve is ADo Some events that could have changed aggregate demand from AD, to AD are O A. a fall in the exchange rate or Price level 0 AS AS an increase in expected future inflation O B. a decrease in the money wage rate or 105 10 an increase in potential GDP ( 100 C. a decrease in expected future income or a decrease...

  • AS Pricelevel P2 AD P1 -AD Aggregate output Refer to Exhibit 7.1, which shows the aggregate...

    AS Pricelevel P2 AD P1 -AD Aggregate output Refer to Exhibit 7.1, which shows the aggregate demand and aggregate supply curves of an economy. In the graph below, the rise in the price levels from P4 to P2 is a result of O a. demand-push inflation. O b. cost-pull inflation. O c. demand-pull inflation. O d. induced inflation. O e, cost-push inflation.

  • Question 1 (15 Marks) Table below shows aggregate demand and supply schedules for an imaginary economy....

    Question 1 (15 Marks) Table below shows aggregate demand and supply schedules for an imaginary economy. Real domestic output demanded Price level Real domestic output supplied (RM billions) (RM billions) 3000 350 9000 4000 300 8000 5000 250 7000 6000 200 6000 7000 150 5000 8000 100 4000 A. Using the data in the table, graph the aggregate demand and aggregate supply curves for this economy. (7 Marks) B. Determine the equilibrium price level and output for this economy in...

  • ans fully Question 1 (15 Marks) Table below shows aggregate demand and supply schedules for an...

    ans fully Question 1 (15 Marks) Table below shows aggregate demand and supply schedules for an imaginary economy. Real domestic output demanded Price level Real domestic output supplied (RM billions) (RM billions) 3000 350 9000 4000 300 8000 5000 250 7000 6000 200 6000 7000 150 5000 8000 100 4000 A. Using the data in the table, graph the aggregate demand and aggregate supply curves for this economy. (7 Marks) B. Determine the equilibrium price level and output for this...

  • How to do this question? Question 1 (15 Marks) Table below shows aggregate demand and supply...

    How to do this question? Question 1 (15 Marks) Table below shows aggregate demand and supply schedules for an imaginary economy Real domestic output demanded Price level Real domestic output supplied (RM billions) (RM billions) 3000 350 9000 4000 300 8000 5000 250 7000 6000 200 6000 7000 150 5000 8000 100 4000 A. Using the data in the table, graph the aggregate demand and aggregate supply curves for this economy. (7 Marks) B. Determine the equilibrium price level and...

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