Homework Answers
ANSEWE 27
Answer of the above asked question is option " c " that is increase in the country's physical capital .
SRAS ( short run aggregate supply ) is a graphical representation of short run or the relationship between the real production or with the price level which holds other thing equal .
ANSWER 28
Answer of the above asked question is option " a " that is an increase in the population 's education level .
LRAS ( long run aggregate supply ) is somewhere on the other hand is determine by all factors of production . If there is a growth in the size of labour force or in the size of investment this will lead to the ship of LRAS curve towards right .
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Question 27 2 pts Which of the following causes the SRAS curve to shift right? An...
Question 3 Which of the following causes the SRAS curve to shift left? O A decrease in the money supply An increase...
Question 3 Which of the following causes the SRAS curve to shift left? O A decrease in the money supply An increase in the Marginal Propensity to Consume An increase in the price of oil An increase in the amount of human capital A decrease in the actual price level Question 4 Suppose the economy is in its long run equilibrium. If there is a decrease in consumption, what happens in the short run? Price level rises and output rises...
1. Which of the following causes the SRAS curve to shift left? A. A decrease in...
1. Which of the following causes the SRAS curve to shift left? A. A decrease in the money supply b. An increase in the Marginal Propensity to Consume c. An increase in the price of oil d. An increase in the amount of human capital e. A decrease in the actual price level 2. Suppose the economy is in its long run equilibrium. If there is a decrease in consumption, what happens in the short run? a. Price level rises...
During a recession consumption falls, causing the aggregate demand curve to shift to the ________. In...
During a recession consumption falls, causing the aggregate demand curve to shift to the ________. In response, the government can increase government spending to shift the ________. a. left; aggregate demand (AD) curve to the right b. left; short-run aggregate supply (SRAS) curve to the right c. right; aggregate demand (AD) curve to the left d. right; short-run aggregate supply (SRAS) curve to the right e. left; long-run aggregate supply (LRAS) curve to the right
What causes the short - run aggregate supply curve or SRAS to shift to the left?...
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 6 The aggregate demand curve would shift to the right as a result of a...
QUESTION 6 The aggregate demand curve would shift to the right as a result of a drop in the foreign exchange value of the dollar. a decrease in the amount of money in circulation. a drop in the price level. tax increases. QUESTION 16 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 price level will fall. real GDP will...
Which of the following will increase aggregate demand?
Question 1 Which of the following will increase aggregate demand? [select all that apply] An increase in expected inflation A decrease in government spending An increase in the money supply An decrease in the exchange rate of domestic and foreign currency A decrease in taxes A decrease in expected profits Question 2 If potential GDP increases we will see: SRAS move right LRAS move right SRAS move left LRAS move left OSRAS and LRAS move right SRAS and LRAS move left
te G Which of the follo... True O False Question 13 4 pts A change in...
te G Which of the follo... True O False Question 13 4 pts A change in the money supply or a change in velocity will change aggregate demand, which causes the aggregate demand curve to shift. O True O False Question 7 4 pts Suppose the economy is at below full employment. To improve this situation, Keynesian economists might propose that the government should expenditures, which will cause the aggregate demand curve to shift to the in an attempt to...
supply curve to shift leftward to SRAS, as shown in the graph at right. The economy is currently in short-run equilibrium at point E, and the reduction in supply is expected to be permanent. LRAS...
supply curve to shift leftward to SRAS, as shown in the graph at right. The economy is currently in short-run equilibrium at point E, and the reduction in supply is expected to be permanent. LRAS SRAS SRAS 1.) Using the line drawing and/or 3-point curved line drawing tool, show the adjustment to long-run equilibrium in this situation. Properly label your new curve(s). 2.) Using the point drawing tool, identify the new long-run equilibrium point and label the point 'E2 Carefully...
Need detailed explanations for short-run and long-run equilibrium. 3. For each of the following scenarios, describe...
Need detailed explanations for short-run
and long-run equilibrium.
3. For each of the following scenarios, describe the effect on the AD curve, the SRAS curve, and the LRAS curve. Identify whether the effect causes a shift of the curve or a movement along the curve and identify the direction of the shift or the movement. Answer these questions on your assignment paper. a. An increase in the money supply causes interest rates to fall. b. The price of commodities (production...
Suppose the Fed doubles the growth rate of the quantity of money in the economy. In...
Suppose the Fed doubles the growth rate of the quantity of money in the economy. In the long run, the increase in money growth will change which of the following? Check all that apply. The price level The inflation rate The quantity of physical capital The size of the labor force Suppose the economy produces real GDP of $70 billion when unemployment is at its natural rate. Use the purple points (diamond symbol) to plot the economy's long-run aggregate supply...
Question 3 Which of the following causes the SRAS curve to shift left? O A decrease in the money supply An increase in the Marginal Propensity to Consume An increase in the price of oil An increase in the amount of human capital A decrease in the actual price level Question 4 Suppose the economy is in its long run equilibrium. If there is a decrease in consumption, what happens in the short run? Price level rises and output rises...
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 6 The aggregate demand curve would shift to the right as a result of a drop in the foreign exchange value of the dollar. a decrease in the amount of money in circulation. a drop in the price level. tax increases. QUESTION 16 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 price level will fall. real GDP will...
te G Which of the follo... True O False Question 13 4 pts A change in the money supply or a change in velocity will change aggregate demand, which causes the aggregate demand curve to shift. O True O False Question 7 4 pts Suppose the economy is at below full employment. To improve this situation, Keynesian economists might propose that the government should expenditures, which will cause the aggregate demand curve to shift to the in an attempt to...
supply curve to shift leftward to SRAS, as shown in the graph at right. The economy is currently in short-run equilibrium at point E, and the reduction in supply is expected to be permanent. LRAS SRAS SRAS 1.) Using the line drawing and/or 3-point curved line drawing tool, show the adjustment to long-run equilibrium in this situation. Properly label your new curve(s). 2.) Using the point drawing tool, identify the new long-run equilibrium point and label the point 'E2 Carefully...
Need detailed explanations for short-run
and long-run equilibrium.
3. For each of the following scenarios, describe the effect on the AD curve, the SRAS curve, and the LRAS curve. Identify whether the effect causes a shift of the curve or a movement along the curve and identify the direction of the shift or the movement. Answer these questions on your assignment paper. a. An increase in the money supply causes interest rates to fall. b. The price of commodities (production...
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