If aggregate demand shifts left, then in the short run Group of answer choices the price...
If aggregate demand shifts left, then in the short run
Group of answer choices
the price level and real GDP both rise.
the price and real GDP both fall.
the price level rises and real GDP falls.
the price level falls and real GDP rises.
Homework Answers
Option 2
Shift in aggregate demand means reduction in demand. So, when demand reduces, the quantity and price both falls (depicted in below graph)
Add Answer to:
If aggregate demand shifts left, then in the short run
Group of answer choices
the price...
The aggregate-demand curve O shows an inverse relation between the price level and the quantity of...
The aggregate-demand curve O shows an inverse relation between the price level and the quantity of all goods and services demanded. O has a slope that is explained in the same way as the slope of the demand curve for a particular product O is vertical in the long run. O All of the above are correct. Question 24 If aggregate demand shifts left, then in the short run the price level and real GDP both rise. O the price...
1. An above-full-employment equilibrium occurs when Group of answer choices aggregate demand decreases while neither the...
1. An above-full-employment equilibrium occurs when Group of answer choices aggregate demand decreases while neither the short-run nor long-run aggregate supply changes. short-run aggregate supply decreases while neither aggregate demand nor long-run aggregate supply changes. the equilibrium level of real GDP is greater than potential GDP. the equilibrium level of real GDP is less than potential GDP. 2. Which of the following shifts the aggregate demand curve rightward? Group of answer choices a decrease in consumption an increase in investment...
Pessimism Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and...
Pessimism Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time. Refer to Pessimism. In the short run what happens to the price level and real GDP? Group of answer choices Both the price level and real GDP fall. Both the price level and real GDP rise. The price level rises and real GDP falls....
QUESTION 23 Which of the following shifts aggregate demand to the left? a. The price level...
QUESTION 23 Which of the following shifts aggregate demand to the left? a. The price level falls. b. The dollar depreciates for some reason other than a change in the price level. c. Stock prices fall for some reason other than a change in the price level. d. The price level rises. QUESTION 24 Aggregate demand shifts left when the government a. decreases taxes. b. cuts military expenditures. c. creates a new investment tax credit d. None of the above...
1. . (Figure: Determining SRAS Shifts) If there are advances in technology, 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...
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...
19. What happens to prices and output when the long-run aggregate-supply curve shifts left? a....
19. What happens to prices and output when the long-run aggregate-supply curve shifts left? a. Prices and output both increase. b. Prices and output both decrease. c. Prices increase and output decreases. d. Prices decrease and output increases. 20. What would cause prices and real GDP to rise in the short run? a. an increase in the expected price level b. an increase in the money supply ...
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...
20. From the short-run equilibrium at point B, suppose the aggregate demand remains un- changed and...
20. From the short-run equilibrium at point B, suppose the aggregate demand remains un- changed and there are no other shocks hitting the economy. The economy can adjust itself and move to the long-run equilibrium without policy intervention. Which of the following is true? A. The economy will return to the long-run equilibrium (point A), where the real GDP equals Y* and the price level is P*. B. The economy will move to a new long-run equilibrium, where the real...
Other things constant, when nominal wages fall, the and the equilibrium price level -__ (Assume household wealth does N...
Other things constant, when nominal wages fall, the and the equilibrium price level -__ (Assume household wealth does NOT change as a result of the decrease in wages.) Short Run Aggregate Supply curve shifts right, falls. Aggregate Demand curve shifts right; falls. Short Run Aggregate Supply curve shifts left: rises. Aggregate Demand curve shifts left: rises.
The aggregate-demand curve O shows an inverse relation between the price level and the quantity of all goods and services demanded. O has a slope that is explained in the same way as the slope of the demand curve for a particular product O is vertical in the long run. O All of the above are correct. Question 24 If aggregate demand shifts left, then in the short run the price level and real GDP both rise. O the price...
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...
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...
20. From the short-run equilibrium at point B, suppose the aggregate demand remains un- changed and there are no other shocks hitting the economy. The economy can adjust itself and move to the long-run equilibrium without policy intervention. Which of the following is true? A. The economy will return to the long-run equilibrium (point A), where the real GDP equals Y* and the price level is P*. B. The economy will move to a new long-run equilibrium, where the real...
Other things constant, when nominal wages fall, the and the equilibrium price level -__ (Assume household wealth does NOT change as a result of the decrease in wages.) Short Run Aggregate Supply curve shifts right, falls. Aggregate Demand curve shifts right; falls. Short Run Aggregate Supply curve shifts left: rises. Aggregate Demand curve shifts left: rises.
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