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Answer option A SRAS1, P 1
The reason is that due to decrease in input prices, cost of production fall and produces can produce at less cost and therefore,increase the supply and supply curve shifts rrightward and SRAS curve shift to SRAS1 and price pevel falls and reach to P1
(Figure: Determining SRAS Shifts) If there is a decrease in input prices, the short-run aggregate supply...
1. . (Figure: Determining SRAS Shifts) If there are advances in technology, the short-run aggregate supply curve will shift from SRAS0 to _____ and the price level will shift to _____. SRAS1; P0 SRAS2; P2 SRAS2; P1 SRAS1; P1 2. Simultaneous recession and deflation can be explained by: a decrease in aggregate supply. an increase in aggregate supply. a decrease in aggregate demand. an increase in aggregate demand. 3. Which is a determinant of aggregate supply? household expectations prices of...
SRAS, SRAS SRAS, Agente Price Level AD Output) (Use figure above) If there is a decrease in input prices, the SRAS curve can shift from SRAS, to and the price level will be at: 10 SRAS1: Po OSRAS1: P1 SRAS2: P1 SRAS 2: PO
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-...
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...
in output WHAT SHIFTS THE SHORT-RUN AGGREGATE SUPPLY CURVE? SRAS, SRAS, BRAS, 1. Determine whether each change listed in the table below will cause an increase, decreased or no change in Aggregate Supply (AS). Always start with SEASO. 2. IN column 1, list which component of AS is affected: input prices or productivity 3. IN column 2, draw an up arrow if the change will cause an increase in AS, a down arrow if it will cause a decrease in...
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...
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...
35. Which of the following will most likely cause a decrease in short-run aggregate supply (leftward shift) in the goods and services market? a. An increase in the productivity of labor b. A reduction in the price of crude oil, a major imported commodity c. An increase in resource prices d. Favorable weather conditions in agricultural areas. 36. The vertical long-run aggregate supply curve reflects the fact that in the long run, an increase in the price level. a. Will not alter the economy's maximum...
In each of the following cases, what is the effect on the short-run aggregate supply (SRAS) curve? An increase labor supply A. does not shift the SRAS curve. O B. shifts the SRAS curve downward OC. shifts the SRAS curve upward An increase in the money supply A. shifts the SRAS curve downward. O B. shifts the SRAS curve upward O C. does not shift the SRAS curve. An increase in consumption A. B. C. shifts the SRAS curve upward....
In each of the following cases, what is the effect on the short-run aggregate supply (SRAS) curve? An increase in firm costs A. does not shift the SRAS curve. B. shifts the SRAS curve upward. C. shifts the SRAS curve downward. An increase in the money supply A. shifts the SRAS curve upward. B. shifts the SRAS curve downward. C. does not shift the SRAS curve. An increase in consumption A. shifts the SRAS curve downward. B. does not shift...