1.
. | (Figure: Determining SRAS Shifts) If there are advances in
technology, the short-run aggregate supply curve will shift from
SRAS0 to _____ and the price level will shift to
_____. |
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2.
Simultaneous recession and deflation can be explained by: | |||||||||
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3.
Which is a determinant of aggregate supply? | |||||||||
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4.
Which of the following will NOT shift the aggregate supply curve to the left? | |||||||||
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5.
The short-run aggregate supply curve is positively sloped because: | |||||||||
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1) SRAS1; P1. This is because technical advancement will raise productivity of resources and increase production. As a result the SRAS will shift to the right. Price is reduced to P1 and output is increased to Q1
2) a decrease in aggregate demand. When AD shifts to the left, GDP declines showing recession and at the same time price level declines showing deflation
3) productivity. Changes in productivity will change production given the resources. This directly affects the aggregate supply
4) a decrease in corporate taxes. If supply side policies are used, then this is likely to shift SRAS to the right
5) a short-run increase in GDP usually is accompanied by a rise in the price level.
1. . (Figure: Determining SRAS Shifts) If there are advances in technology, the short-run aggregate supply...
(Figure: Determining SRAS Shifts) If there is a decrease in input prices, the short-run aggregate supply curve will shift from SRAS, to _____ and the price level will shift to SRASZ SRAS. SRAS, P2 Aggregate Price Level (P) РО PL AD 0 Q2 QO Q Aggregate Output (Q) SRAS1: P1 SRAS2: P2
Chapter 9 Part 2: Homework Problems Done 9. (Figure: Determining SRAS Shifts 2) Aggregate Output (Q) Which of the following might cause a change in short-run aggregate supply? Unions successfully negotiate higher wages. Consumer incomes decrease. Businesses are increasingly optimistic about the future. Taxes on businesses increase. Start: 4:2S PM Aggregate Price Level (P) Done Chapter 9 Part 2: Homework Problems 11. (Figure: Shifting SRAS and AD) 200 180 SRAS 160 140 120 AD2 100 80 a 6아- AD 40아-...
in output WHAT SHIFTS THE SHORT-RUN AGGREGATE SUPPLY CURVE? SRAS, SRAS, BRAS, 1. Determine whether each change listed in the table below will cause an increase, decreased or no change in Aggregate Supply (AS). Always start with SEASO. 2. IN column 1, list which component of AS is affected: input prices or productivity 3. IN column 2, draw an up arrow if the change will cause an increase in AS, a down arrow if it will cause a decrease in...
23. Consider a supply shock in the static model that shifts the Short Run Aggregate Supply curve as shown in the figure below (SRAS; to SRAS2): LRAS Price level (GDP deflator, 2009 = 100) SRASZ SRAS Real GDP (trillions of 2009 dollars) If instead of adopting monetary and fiscal policy, the government chooses to remain idle, what would be the long-term consequences of the shock? A) Real GDP will return to its original level, and there will permanently be a...
SRAS, SRAS SRAS, Agente Price Level AD Output) (Use figure above) If there is a decrease in input prices, the SRAS curve can shift from SRAS, to and the price level will be at: 10 SRAS1: Po OSRAS1: P1 SRAS2: P1 SRAS 2: PO
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...
What causes the short - run aggregate supply curve or SRAS to shift to the left? 0 A. an increase in inflation expectations B. a decrease in interest rates O C. a technological advance D. an increase in the price level
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.
35. Which of the following will most likely cause a decrease in short-run aggregate supply (leftward shift) in the goods and services market? a. An increase in the productivity of labor b. A reduction in the price of crude oil, a major imported commodity c. An increase in resource prices d. Favorable weather conditions in agricultural areas. 36. The vertical long-run aggregate supply curve reflects the fact that in the long run, an increase in the price level. a. Will not alter the economy's maximum...
The following figure depicts the aggregate demand (AD), the short-run aggregate supply (SRAS), and the long-run aggregate supply (LRAS) curves for an economy. The economy is initially at long-run equilibrium, at point A. Suppose that there is an increase in the amount of investment in the economy due to a reduction in the real interest rate. This increase in investment shifts the AD curve to the right, depicted below in the movement of the economy from point A to point...