Homework Answers
Correct option is (3).
The higher the market power, the lower the output produced by each firm. Therefore, aggregate supply decreases, shifting SRAS curve leftward.
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If the market power of firms increases, what happens in the AD/AS model? Aggregate demand shifts...
1. Unemployment increases and inflation decreases whenever: a. aggregate demand shifts right b. aggregate demand shifts...
1. Unemployment increases and inflation decreases whenever: a. aggregate demand shifts right b. aggregate demand shifts left c. aggregate supply shifts left d. aggregate supply shifts right 2. Suppose that the output was two hundred million in 2017 and two hundred and ten million in 2018. Then, then the growth rate in GDP between 2017 and 2018 would be? a. 10% b. 5% c. 15% d. 20% 3. Suppose that the unemployment rate exceeds the natural rate, then a. the...
Demand increases(shifts up to the right) Demand falls (shifts down to the left) Supply increases(shifts to...
Demand increases(shifts up to the right) Demand falls (shifts down to the left) Supply increases(shifts to the right) Supply falls (shifts to the left) Consider the market for electricity. Would each of the following factors increase demand, reduce demand, increase supply, or reduce supply in the market for electricity? Mark one answer in each row. Consumers’ incomes rise. The price of natural gas rises. (This is used as a fuel in homes and in power generation.) Consumers buy more energy-efficient appliances. The government...
A stock market boom would shift the aggregate demand curve to the Right.To offset this change,...
A stock market boom would shift the aggregate demand curve to the Right.To offset this change, the Fed could increase the money supply. right. To offset this change, the Fed could decrease the money supply. left. To offset this change, the Fed could increase the money supply. left. To offset this change, the Fed could decrease the money supply. Other things the same, if the Fed increases the money supply, the interest rate rises so aggregate demand shifts right. rises...
1. Inflationary pressure in the AS-AD model can be shown as a a) supply shock that...
1. Inflationary pressure in the AS-AD model can be shown as
a
a) supply shock that shifts the AD to the left.
b) rise in input prices affecting most firms across the economy
shifting AS curve to the right.
c) rise in input prices affecting most firms across the economy
shifting AS curve to the left.
2. Which of the following would cause a positive demand shock
(shift to the right) in aggregate demand?
a) decreased availability of capital stock....
Which of the following would cause stagflation? Select one: a. aggregate supply shifts right b. aggregate demand shifts...
Which of the following would cause stagflation? Select one: a. aggregate supply shifts right b. aggregate demand shifts left c. aggregate supply shifts left d. aggregate demand shifts right
What happens in the market for coffee if the price of sugar rises? Select one: O...
What happens in the market for coffee if the price of sugar rises? Select one: O a. supply shifts to the left and price increases O b. supply shifts to the right and price decreases O c. demand shifts to the left and price decreases O d, demand shifts to the right and price increases
Inter est rate (percent) S1 S2 r1 Di Quantity of money per period What happens in...
Inter est rate (percent) S1 S2 r1 Di Quantity of money per period What happens in the aggregate economy (ADAS model) as a result of the increase in money supply and reduction in interest rates? The aggregate demand curve shifts to the left. The aggregate demand curve shifts to the right. The short-run aggregate supply curve shifts to the right. The short-run aggregate supply curve shifts to the left.
Which of the following shifts aggregate demand to the left?
Which of the following shifts aggregate demand to the left? a. Interest rates fall. b. Stock prices fall for some reason other than a change in the price level. c. The dollar depreciates for some reason other than a change in the price level. d. The price level rises. Which of the following shifts aggregate demand right? a. both a decrease in the price level and the implementation of an investment tax credit b. a decrease in the price level but not the implementation of an investment...
1. An introduction to the AD-AS model The AD-AS (aggregate demand and aggregate supply) model is...
1. An introduction to the AD-AS model The AD-AS (aggregate demand and aggregate supply) model is a useful simplification of the macroeconomy. The horizontal axis of a diagram of the AD and AS curves measures which of the following? The price of one particular representative good produced in the economy The amount of one particular representative good produced in the economy An economy's price level An economy's aggregate output The vertical axis of a diagram of the AD and AS...
12.)In the market for corn, what happens to demand when the price of corn increases? What...
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1. Unemployment increases and inflation decreases whenever: a. aggregate demand shifts right b. aggregate demand shifts left c. aggregate supply shifts left d. aggregate supply shifts right 2. Suppose that the output was two hundred million in 2017 and two hundred and ten million in 2018. Then, then the growth rate in GDP between 2017 and 2018 would be? a. 10% b. 5% c. 15% d. 20% 3. Suppose that the unemployment rate exceeds the natural rate, then a. the...
1. Inflationary pressure in the AS-AD model can be shown as
a
a) supply shock that shifts the AD to the left.
b) rise in input prices affecting most firms across the economy
shifting AS curve to the right.
c) rise in input prices affecting most firms across the economy
shifting AS curve to the left.
2. Which of the following would cause a positive demand shock
(shift to the right) in aggregate demand?
a) decreased availability of capital stock....
Which of the following would cause stagflation? Select one: a. aggregate supply shifts right b. aggregate demand shifts left c. aggregate supply shifts left d. aggregate demand shifts right
What happens in the market for coffee if the price of sugar rises? Select one: O a. supply shifts to the left and price increases O b. supply shifts to the right and price decreases O c. demand shifts to the left and price decreases O d, demand shifts to the right and price increases
Inter est rate (percent) S1 S2 r1 Di Quantity of money per period What happens in the aggregate economy (ADAS model) as a result of the increase in money supply and reduction in interest rates? The aggregate demand curve shifts to the left. The aggregate demand curve shifts to the right. The short-run aggregate supply curve shifts to the right. The short-run aggregate supply curve shifts to the left.
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