Homework Answers
Answer - Option C
A shift from SRAS 1 to SRAS 2 and a movement to point A with a higher price level at the same output.
This is because of the contractionary policy , the supply curve will shift to left (upward) thus increasing the price level.
Add Answer to:
Suppose the economy is initially in long-run equilibrium. The Fed decides to increase the required reserve...
Score: 0 of 4 pts 4 of 10 (6 complete) | HWS Concept: Contractionary Policy 1...
Score: 0 of 4 pts 4 of 10 (6 complete) | HWS Concept: Contractionary Policy 1 Suppose the economy is initially in long-run equilibrium. The Fed decides to sell bonds. In the short-run, this contractionary monetary policy will cause: LRAS O A. A shift from SRAS, to SRAS, and a movement to point A, with a higher price level and the same output. OB. A shift from SRAS, to SRAS, and a movement to point B, with a lower price...
Figure: AD–AS Refer to Figure: AD–AS. Assume that the economy is in long-run equilibrium. If the...
Figure:
AD–AS
Refer to Figure: AD–AS. Assume that the economy
is in long-run equilibrium. If the Federal Reserve were to lower
the targeted federal funds rate we would most likely expect:
there will be a downward movement along the aggregate demand
curve AD1.
the aggregate demand curve will stay unchanged at
AD1.
the aggregate demand curve will shift to
AD3.
the aggregate demand curve will shift to
AD2.
LRAS Aggregate price level SRAS AD, AD AD, Y₂ YpY, Real GDP
Chapter 9 Part 2: Homework Problems Done 9. (Figure: Determining SRAS Shifts 2) Aggregate Output (Q)...
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-...
14. Suppose the economy moves from point A in year 1 to point B in year...
14. Suppose the economy moves from point A in year 1 to point B in year 2 120 119- LRAS LRAS SRAS, 118 a. The growth rate of potential GDP from year 1 to year 2 is %. (Enter your response rounded to two decimal places) SRASZ b. The unemployment rate in year 2 is (1) in year 1 117 116- 115- 114 © 114...... 113 112 112_***** ...B Price level(GDP deflator 2009=100) A c. The inflation rate in year...
LRAS In the graph to the right illustrating the AD-AS model, assume the economy was in...
LRAS In the graph to the right illustrating the AD-AS model, assume the economy was in equilibrium at point E1. Then, assume there was a decline in spending on new houses. Where does short-run equilibrium occur? Where does long-run equilibrium occur? 1.) Using the point drawing tool, plot the point that represents short-run equilibrium. Label this point E2. Price level, P. SRAS a SRAS2E1 2.) Using the point drawing tool, plot the point that represents long-run equilibrium. Label this point...
The accompanying graph illstrates an economy in long-run equilibrium which is denoted by point FiR Suppose...
The accompanying graph illstrates an economy in long-run equilibrium which is denoted by point FiR Suppose a new technology is discovered which increases productivity. In the graph, demonstrate how the economy moves to its new long-run equilibrium by shifting the appropriate curves and placing point ELR at the new long- run equilibrium. LRAS SRAS LR In the long run, the aggregate price level decreases and real GDP (aggregate output) AD increases. Real GDP
LRAS 150-n 1301 11아- Aggregate Deri 10 11 12 Real GDP per Year (S trillions) In the above figure...
LRAS 150-n 1301 11아- Aggregate Deri 10 11 12 Real GDP per Year (S trillions) In the above figure, the long-run equilibrium price level is Price Level AD2 AD1 Real GDP per Year in the above figure a movement from point B to point A can be explained by In the above figure, a movement from point B to point A can be explained by 1) a drop in the price level. 2) an increase in spending due to a...
(Figure: Determining SRAS Shifts) If there is a decrease in input prices, 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
23. Consider a supply shock in the static model that shifts the Short Run Aggregate Supply...
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...
ce Level Long Run Aegregate Supply 110 LRAS 1 105 100 95 13 5 14.5 15.5...
ce Level Long Run Aegregate Supply 110 LRAS 1 105 100 95 13 5 14.5 15.5 165 Real GDP or Output amlbon of 2009 dollars Refer to the economic model pictured above: Decrease in price levels from 105 to 100 will cause Real GDP to O remain constant in the long run increase to 16.5 trillion in the long run O decrease to 13.5 trillion in the long run O increase to 15.5 trillion in the long run Price Level...
Score: 0 of 4 pts 4 of 10 (6 complete) | HWS Concept: Contractionary Policy 1 Suppose the economy is initially in long-run equilibrium. The Fed decides to sell bonds. In the short-run, this contractionary monetary policy will cause: LRAS O A. A shift from SRAS, to SRAS, and a movement to point A, with a higher price level and the same output. OB. A shift from SRAS, to SRAS, and a movement to point B, with a lower price...
Figure:
AD–AS
Refer to Figure: AD–AS. Assume that the economy
is in long-run equilibrium. If the Federal Reserve were to lower
the targeted federal funds rate we would most likely expect:
there will be a downward movement along the aggregate demand
curve AD1.
the aggregate demand curve will stay unchanged at
AD1.
the aggregate demand curve will shift to
AD3.
the aggregate demand curve will shift to
AD2.
LRAS Aggregate price level SRAS AD, AD AD, Y₂ YpY, Real GDP
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-...
14. Suppose the economy moves from point A in year 1 to point B in year 2 120 119- LRAS LRAS SRAS, 118 a. The growth rate of potential GDP from year 1 to year 2 is %. (Enter your response rounded to two decimal places) SRASZ b. The unemployment rate in year 2 is (1) in year 1 117 116- 115- 114 © 114...... 113 112 112_***** ...B Price level(GDP deflator 2009=100) A c. The inflation rate in year...
LRAS In the graph to the right illustrating the AD-AS model, assume the economy was in equilibrium at point E1. Then, assume there was a decline in spending on new houses. Where does short-run equilibrium occur? Where does long-run equilibrium occur? 1.) Using the point drawing tool, plot the point that represents short-run equilibrium. Label this point E2. Price level, P. SRAS a SRAS2E1 2.) Using the point drawing tool, plot the point that represents long-run equilibrium. Label this point...
The accompanying graph illstrates an economy in long-run equilibrium which is denoted by point FiR Suppose a new technology is discovered which increases productivity. In the graph, demonstrate how the economy moves to its new long-run equilibrium by shifting the appropriate curves and placing point ELR at the new long- run equilibrium. LRAS SRAS LR In the long run, the aggregate price level decreases and real GDP (aggregate output) AD increases. Real GDP
LRAS 150-n 1301 11아- Aggregate Deri 10 11 12 Real GDP per Year (S trillions) In the above figure, the long-run equilibrium price level is Price Level AD2 AD1 Real GDP per Year in the above figure a movement from point B to point A can be explained by In the above figure, a movement from point B to point A can be explained by 1) a drop in the price level. 2) an increase in spending due to a...
(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
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...
ce Level Long Run Aegregate Supply 110 LRAS 1 105 100 95 13 5 14.5 15.5 165 Real GDP or Output amlbon of 2009 dollars Refer to the economic model pictured above: Decrease in price levels from 105 to 100 will cause Real GDP to O remain constant in the long run increase to 16.5 trillion in the long run O decrease to 13.5 trillion in the long run O increase to 15.5 trillion in the long run Price Level...
Most questions answered within 3 hours.
-
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (6)
QUESTIONS:
The following is a December 31,...
asked 13 minutes ago -
Suppose you plan to invest $5,000 each year (beginning at the
end of this year) into...
asked 3 minutes ago -
What is the cell potential of the following cell at 25
oC? Note Au is a...
asked 4 minutes ago -
The Poseidon Swim Company produces swim trunks. The average
selling price for one of their swim...
asked 6 minutes ago -
DNA to Protein
Describe the mutation that created the HbS allele:
type of mutation, location of...
asked 10 minutes ago -
1a)When a 5000-kg roller coaster train full of riders approaches
the loading dock at a speed...
asked 11 minutes ago -
Which attribute allows you to specify a custom "thumbnail" for
multimedia elements?
asked 11 minutes ago -
1. Why are the advantages and disadvantages of object-oriented
databases? 2. What are data marts? How...
asked 30 minutes ago -
A Porsche challenges a Honda to a 4.00×102m race. Because the
Porsche's acceleration of 3.30 m/s2...
asked 30 minutes ago -
A sample of C3H8 has 1.60×1024 H atoms.
How many carbon atoms does the sample contain?...
asked 1 hour ago -
How many unique codes are possibly formed from two characters,
where the first character can be...
asked 53 minutes ago -
A concentration cell is built based on the reaction:
2H+ + 2e- ----> H2
The pH...
asked 49 minutes ago