The shape of the long-run aggregate supply curve suggests that
The shape of the long-run aggregate supply curve suggests that
Potential GDP is the amount of output that can be produced if the economy is operating at maximum capacity
Potential GDP is independent of the average price level
Potential GDP is positively related to the average price level
Potential GDP is negatively related to the average price level
Homework Answers
Answer......... b ( potential GDP is independent of the average price level)
Explanation:- The LRAS curve is perfectly inelastic ( vertical). And any change in the aggregate demand in the long run merely changes price, In the long run with full employment of resources GDP becomes potential GDP.
Further LRAS is not related to average price level negatively or positively. Both are independent. The classical economists believed that economy is at potential GDP and change in the wages, rent etc. only affects price level not output.
The long-run aggregate supply curve is vertical because Select one: a. potential GDP is independent of...
The long-run aggregate supply curve is vertical because Select one: a. potential GDP is independent of the price level. ob. actual output can never exceed, even temporarily, the output rate implied by the economy's long-run aggregate supply curve. c. a vertical long-run aggregate supply curve indicates the maximum output rate that an economy can ever reach. d. a vertical long-run supply curve indicates that an increase in aggregate demand will lead to a
When the aggregate demand curve and the short-run aggregate supply curve intersect, a) the long-run aggregate...
When the aggregate demand curve and the short-run aggregate supply curve intersect, a) the long-run aggregate supply curve must also intersect at the same point. Ob) the economy must experience higher output than the natural level of output. o c) the economy must experience lower output than the natural level of output. o d) the economy is in short-run macroeconomic equilibrium. In a small economy in 2016, aggregate expenditure was $900 million while GDP that year was $750 million. Which...
Describe the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve. A. the...
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...
A vertical long-run aggregate supply curve indicates that an increase in the price level will not...
A vertical long-run aggregate supply curve indicates that an increase in the price level will not expand an economy's output capacity in the long run. outputs greater than the long-run supply constraint cannot be achieved. an increase in the price level will permit the economy to achieve a higher level of output. an increase in the price level will promote technological change and more rapid economic growth.
1. Aggregate supply definitions The short-run aggregate supply curve shows: What happens to output in an...
1. Aggregate supply definitions The short-run aggregate supply curve shows: What happens to output in an economy when the government spends more money How firms respond to changes in interest rates Changes in output in an economy as the price level changes, holding all other determinants of real GDP constar The relationship between the price level and aggregate expenditure Which of the following are assumed to remain unchanged along a given short-run aggregate supply curve? Check all that The price...
The following graph shows the short-run aggregate supply curve (AS), the aggregate demand curve (AD), and the long-run aggregate supply curve (LRAS) for a hypothetical economy
9. Economic fluctuations II The following graph shows the short-run aggregate supply curve (AS), the aggregate demand curve (AD), and the long-run aggregate supply curve (LRAS) for a hypothetical economy. Initially, the expected price level is equal to the actual price level, and the economy is in long-run equilibrium at its natural level of output, $120 billion. Suppose a bout of severe weather drives up agricultural costs, increases the costs of transporting goods and services, and increases the costs of producing goods...
The pre-Keynesian or classical economic theory viewed the long-run aggregate supply curve for the economy to...
The pre-Keynesian or classical economic theory viewed the long-run aggregate supply curve for the economy to be: a. vertical at the full-employment level of real GDP. b. positively sloped at the full-employment level of real GDP. c. horizontal at the full-employment level of real GDP. d. backward bending at the full-employment level of real GDP.
urves. Where on the short-run AS curve was Japan in 2000 8 By using aggregate supply...
urves. Where on the short-run AS curve was Japan in 2000 8 By using aggregate supply and aggregate demand curves to iutratyour points, discuss the impacts of the following events on the price level and on equilibrium GDP () in the short run: d. An increase in the money supply with the economy operating at near full capacity A de crease in taxes and an increase in government spendi ng supported by a cooperative Fed acting to keep output from...
The short-run aggregate supply curve shows the short-run relationship between the A. price level and quantity...
The short-run aggregate supply curve shows the short-run relationship between the A. price level and quantity supplied in one market. B. price level and total demand in the entire economy. C. price level and the willingness of firms to supply output to the economy. D. consumption level and the price level. Evidence about the behavior of prices in the economy suggests that changes in aggregate demand have a relatively （Large or small） effect on prices within a few quarters so...
The economy's long-run equilibrium is at the point where the aggregate demand curve intersects the long-run...
The economy's long-run equilibrium is at the point where the aggregate demand curve intersects the long-run aggregate supply curve. True False The aggregate supply curve shows the relationship between real GDP and the average price level. True False
The long-run aggregate supply curve is vertical because Select one: a. potential GDP is independent of the price level. ob. actual output can never exceed, even temporarily, the output rate implied by the economy's long-run aggregate supply curve. c. a vertical long-run aggregate supply curve indicates the maximum output rate that an economy can ever reach. d. a vertical long-run supply curve indicates that an increase in aggregate demand will lead to a
When the aggregate demand curve and the short-run aggregate supply curve intersect, a) the long-run aggregate supply curve must also intersect at the same point. Ob) the economy must experience higher output than the natural level of output. o c) the economy must experience lower output than the natural level of output. o d) the economy is in short-run macroeconomic equilibrium. In a small economy in 2016, aggregate expenditure was $900 million while GDP that year was $750 million. Which...
1. Aggregate supply definitions The short-run aggregate supply curve shows: What happens to output in an economy when the government spends more money How firms respond to changes in interest rates Changes in output in an economy as the price level changes, holding all other determinants of real GDP constar The relationship between the price level and aggregate expenditure Which of the following are assumed to remain unchanged along a given short-run aggregate supply curve? Check all that The price...
urves. Where on the short-run AS curve was Japan in 2000 8 By using aggregate supply and aggregate demand curves to iutratyour points, discuss the impacts of the following events on the price level and on equilibrium GDP () in the short run: d. An increase in the money supply with the economy operating at near full capacity A de crease in taxes and an increase in government spendi ng supported by a cooperative Fed acting to keep output from...
Most questions answered within 3 hours.
-
Little’s Law: Val d’Costa is a world famous ski village in the
French Alps. Because of...
asked 3 minutes ago -
Find the absolute error D for the calculation if A + B/C=D A=
9.4 +/- 0.4...
asked 16 minutes ago -
New Air Heating and Cooling, manufactures furnaces and central
air units. The company pride itself on...
asked 30 minutes ago -
A coach uses a new technique to train gymnasts. Seven
gymnasts were randomly selected and their...
asked 2 hours ago -
While rotating the tires on your car you notice a rock [mass =
0.1 Kg] stuck...
asked 4 hours ago -
Using MARS simulator, write MIPS programs according to
the following scenarios: Receive a positive integer number...
asked 6 hours ago -
An object in front of a concave mirror has a real image that is
11.5 cm...
asked 6 hours ago -
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 8 hours ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 8 hours ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 8 hours ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 8 hours ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 8 hours ago