Homework Answers
Ans is D
since the economy Y2, which is less than Y1 leading to unemployment or under utilisation of resources leading to lower real GDP. Since there is unemployment due to which nominal wage will decrease due to which SRAS will shift to the right
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If the aggregate demand in the economy depicted below is AD2, ceteris paribus, what is likely...
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
In the economy depicted in the graph, what happens if there is no intervention from policy...
In the economy depicted in the graph, what happens if there is no intervention from policy makers? Use the graph, where LRAS represents long-run aggregate supply, SRAS represents short-run aggregate supply, and AD represents aggregate demand, to demonstrate the answers by shifting the appropriate curve or curves. LRAS SRAS Prices will Aggregate price level (P) decrease. O increase. Output will decrease. Real output (Q) O increase.
pls explain! The graph below shows 3 potential aggregate demand curves for an economy. Using point...
pls explain!
The graph below shows 3 potential aggregate demand curves for an economy. Using point A as a starting place, to vahesh point will the economy move if Congress raipesc taxes? Price Level Which term best describes this t policy measure? ype O Fiscal Policy O Monetary Policy O Supply-side O Regulatory AD3 AD2 AD1 Real GDP
Refer to Figure: Shift of the Aggregate Demand Curve. A movement from AD1 to AD2 may have been the result of:
2. Figure: Shift of the Aggregate Demand Curve Refer to Figure: Shift of the Aggregate Demand Curve. A movement from AD1 to AD2 may have been the result of: increases in personal income taxes. a decrease in government spending. a decrease in consumer wealth. an increase in government spending.
The graph depicts a dynamic aggregate demand (AD) and aggregate supply (AS) model of the economy....
The graph depicts a dynamic aggregate demand (AD) and aggregate supply (AS) model of the economy. Suppose that in 2003, the economy is in macroeconomic equilibrium, with GDP at GDP (year 1). The Fed projects that in 2004, the aggregate demand curve will be AD (year 2), that potential real GDP will be $12.45 trillion (GDP (year 2), and that actual real GDP will be $12.39 trillion LRAS (year 1) LRAS (year 2) SRAS (ycar1) SRAS (year 2 ear Year...
QUESTION 23 Ceteris paribus , which of the following would cause the aggregate demand curve to...
QUESTION 23 Ceteris paribus , which of the following would cause the aggregate demand curve to shift to the right? a reduced stock market wealth b. a reduction in transfer payments c. a rise in consumer confidence d. higher personal taxes QUESTION 24 Ceteris paribus , which of the following would cause the aggregate demand curve to shift to the right? a reduced stock market wealth b. a reduction in transfer payments c. a rise in consumer confidence d. higher...
The following figure depicts the aggregate demand (AD), theshort-run aggregate supply (SRAS), and the long-run...
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...
The graph below depicts the aggregate demand, Irrun aggregate supply, and short-run aggregate supply curves for...
The graph below depicts the aggregate demand, Irrun aggregate supply, and short-run aggregate supply curves for the United States at an initial long-run macroeconomic equilibrium Price level] (P) LRAS SRAS Real GDP Consider a situation in which two things happen simultaneously: there is a deterioration of institutions, and the federal government massively increases spending. Which of the graphs below illustrates the shifts in this model given this situation? Price level Price level (P) (P) URAS LRAS, LRAS SRAS SRAS SRAS...
Figure AS-AD.1 AD2 AD1 AD3 Real Domestic Output, GDP 13) In Figure AS.AD.1, what combination would...
Figure AS-AD.1 AD2 AD1 AD3 Real Domestic Output, GDP 13) In Figure AS.AD.1, what combination would most likely cause a shift from ADI to AD2? A) A decrease in taxes and an increase in government purchases B) An increase in taxes and an increase in government purchases 14) Other things being equal, the effects of an increase in the price of orange juice would best be represented by a(n): A) upward movement along the demand curve for orange juice. B)...
Panel (b) A decrease in aggregate demand 1.20 1.18 1.16 1.14 1.12 AD1 AD2 1.10 $11,600...
Panel (b) A decrease in aggregate demand 1.20 1.18 1.16 1.14 1.12 AD1 AD2 1.10 $11,600 11,800 12,000 12,200 12,400 12,600 -00 Real GDP (billions of base-year dollars) per year ear Price level (base year = 1.00) QUESTION 3 3 points Save Answer Look at Panel (b) of Figure 7.2. Suppose the curve AD1 is the aggregate demand curve in year 1 and AD2 is that in year 2, and that the aggregate supply is 11,800 billions at all 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
In the economy depicted in the graph, what happens if there is no intervention from policy makers? Use the graph, where LRAS represents long-run aggregate supply, SRAS represents short-run aggregate supply, and AD represents aggregate demand, to demonstrate the answers by shifting the appropriate curve or curves. LRAS SRAS Prices will Aggregate price level (P) decrease. O increase. Output will decrease. Real output (Q) O increase.
pls explain!
The graph below shows 3 potential aggregate demand curves for an economy. Using point A as a starting place, to vahesh point will the economy move if Congress raipesc taxes? Price Level Which term best describes this t policy measure? ype O Fiscal Policy O Monetary Policy O Supply-side O Regulatory AD3 AD2 AD1 Real GDP
The graph depicts a dynamic aggregate demand (AD) and aggregate supply (AS) model of the economy. Suppose that in 2003, the economy is in macroeconomic equilibrium, with GDP at GDP (year 1). The Fed projects that in 2004, the aggregate demand curve will be AD (year 2), that potential real GDP will be $12.45 trillion (GDP (year 2), and that actual real GDP will be $12.39 trillion LRAS (year 1) LRAS (year 2) SRAS (ycar1) SRAS (year 2 ear Year...
QUESTION 23 Ceteris paribus , which of the following would cause the aggregate demand curve to shift to the right? a reduced stock market wealth b. a reduction in transfer payments c. a rise in consumer confidence d. higher personal taxes QUESTION 24 Ceteris paribus , which of the following would cause the aggregate demand curve to shift to the right? a reduced stock market wealth b. a reduction in transfer payments c. a rise in consumer confidence d. higher...
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...
The graph below depicts the aggregate demand, Irrun aggregate supply, and short-run aggregate supply curves for the United States at an initial long-run macroeconomic equilibrium Price level] (P) LRAS SRAS Real GDP Consider a situation in which two things happen simultaneously: there is a deterioration of institutions, and the federal government massively increases spending. Which of the graphs below illustrates the shifts in this model given this situation? Price level Price level (P) (P) URAS LRAS, LRAS SRAS SRAS SRAS...
Figure AS-AD.1 AD2 AD1 AD3 Real Domestic Output, GDP 13) In Figure AS.AD.1, what combination would most likely cause a shift from ADI to AD2? A) A decrease in taxes and an increase in government purchases B) An increase in taxes and an increase in government purchases 14) Other things being equal, the effects of an increase in the price of orange juice would best be represented by a(n): A) upward movement along the demand curve for orange juice. B)...
Panel (b) A decrease in aggregate demand 1.20 1.18 1.16 1.14 1.12 AD1 AD2 1.10 $11,600 11,800 12,000 12,200 12,400 12,600 -00 Real GDP (billions of base-year dollars) per year ear Price level (base year = 1.00) QUESTION 3 3 points Save Answer Look at Panel (b) of Figure 7.2. Suppose the curve AD1 is the aggregate demand curve in year 1 and AD2 is that in year 2, and that the aggregate supply is 11,800 billions at all price...
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