why the wage rates relate to price level? ro 38. The wage rate rises. As a...
The graph shows a long-run aggregate supply curve and a short-run aggregate supply curve. Draw an arrow along one of the curves that illustrate a rise in the price level when the money wage rate remains unchanged. Label it 1. Draw an arrow along one of the curves that illustrate a rise in the price level accompanied by the same percentage rise in the money wage rate. Label it 2.An increase in the price level when the money wage rate remains...
3)If the price level rises and the money wage-rate remains constant, what happens to the quantity of real GDP supplied? Along which aggregate supply curve does the economy move? (Detail Answer)
At higher rates of interest households save less because it is more expensive to save. businesses demand more investment because there are more funds available to invest. households save more because they get a greater return on their savings. businesses demand more investment because future profitability is likely to be greater. According to Keynesian economics using the modern short-run aggregate supply curve, if there are unutilized resources in the economy and the aggregate demand decreases real GDP will fall and...
The aggregate-demand curve O shows an inverse relation between the price level and the quantity of all goods and services demanded. O has a slope that is explained in the same way as the slope of the demand curve for a particular product O is vertical in the long run. O All of the above are correct. Question 24 If aggregate demand shifts left, then in the short run the price level and real GDP both rise. O the price...
Other things the same, as the price level rises, the real value of a dollar a. falls, and interest rates rise. b. rises, and interest rates fall. C. rises, and interest rates rise. d. falls, and interest rates fall.
1. Explain what will happen to the price level real GDP and the unemployment rate in the following cases: a. AD falls by the same amount that SRAS rises b. AD falls by less than SRAS rises c. AD falls by more than SRAS falls d. AD falls by the same amount that SRAS falls e. AD falls by less than SRAS falls 2. Explain how expectations about future sales will affect investment. 3. How will a change in the...
If aggregate demand shifts left, then in the short run Group of answer choices the price level and real GDP both rise. the price and real GDP both fall. the price level rises and real GDP falls. the price level falls and real GDP rises.
If the money supply increases 10 percent, real GDP rises 3 percent, and the price level increases 4 percent, then velocity must: Fall 3 percent (A) Rise 3 percent (B) be constant (C) Rise 7 percent (D)
Assume that banks lend less. This leads to lower borrowing by people and households. As a result they cut spending. What happens to the price level and real GDP in the short run? A. both the price level and real GDP rise B. the price level level falls and real GDP rises C. the price level level rises and real GDP falls D. both the price level and real GDP fall
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.