Other things equal, an increase in productivity will: 1) reduce aggregate supply and increase real output....

Question

Question

Other things equal, an increase in productivity will: 1) reduce aggregate supply and increase real output. 2) reduce both the

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Answer
Option 3
increase in productivity increases aggregate supply and shifts the AS curve to the right which increases real output and decreases price level in the new equilibrium level of output.

Add a comment

Answer 2

Similar Homework Help Questions

(1) Other things being equal, which of the following will increase aggregate expenditures? Group of answer...

(1) Other things being equal, which of the following will increase aggregate expenditures? Group of answer choices An increase in domestic prices relative to foreign prices A decrease in the interest rate A decrease in real wealth An increase in income taxes A decrease in government purchases of goods and services (2) If the current unemployment rate is 5 percent and the natural unemployment rate is 6 percent, then the economy is Group of answer choices producing a level of...
5&6 5. Other things equal, if labor productivity improves, the: A. aggregate demand curve would shift...

5&6 5. Other things equal, if labor productivity improves, the: A. aggregate demand curve would shift to the right. B. aggregate supply curve would shift to the left. C. aggregate supply curve would shift to the right. D. aggregate demand curve would shift to the left. Please answer question 6 by referring to the following Aggregate Supply curve. Price level AP Aggregate Supply "Flat" range FOREVE Real GDP 6. The flat portion of the Aggregate Supply curve is characterized by...
Which would most likely shift the aggregate supply curve? A change in the prices of _____....

Which would most likely shift the aggregate supply curve? A change in the prices of _____. domestic products foreign products financial assets resources A decrease in aggregate demand in the short run will reduce _____. both real output and the price level the price level and increase the real domestic output the real domestic output and have no effect on the price level the price level and have no effect on real domestic output The economy's long-run AS curve assumes...

1. What effects would each of the following have on aggregate demand or aggregate supply (other...

1. What effects would each of the following have on aggregate demand or aggregate supply (other things held constant)? Explain them to score high marks. a. The Canadian dollar loses its value and gets weaker by 3% against the US dollar. Ans: b. A $2 increase in the excise tax (production) on a pack of cigarettes. Ans: c. A reduction in interest rates at each price level. Ans: I d. COVID-19 reduces the demand for oil and thus oil prices...
How would aggregate demand change if foreign incomes increase and the exchange rate value of the...

How would aggregate demand change if foreign incomes increase and the exchange rate value of the dollar increases? a. Neither change would affect aggregate demand. b. The increase in income would decrease aggregate demand; the increase in the exchange rate would increase aggregate demand. c. The increase in income would increase aggregate demand; the increase in the exchange rate would decrease aggregate demand. d. Both changes would decrease aggregate demand If the exchange rate value of the dollar depreciates relative...
Other things equal, an increase in the real interest rate leads to a. a decrease in...

Other things equal, an increase in the real interest rate leads to a. a decrease in the quantity of investment goods demanded b. an increase in the quantity of investment goods demanded c. no change in the quantity of investment goods d. either an increase or a decrease in the quantity of investment goods demanded depending on the initial amount of investment.

An increase in the value of the dollar will lead to a. an increase in aggregate...

An increase in the value of the dollar will lead to a. an increase in aggregate supply as foreign input prices fall. b. a decrease in aggregate demand as net exports decline. c. an increase in real GDP. d. a decrease in real GDP. e. All of the above are theoretically possible.
17- Both the long run and short run aggregate supply curve will shift when an event...

17- Both the long run and short run aggregate supply curve will shift when an event occurs which is expected to last only a short period of time. they are both upward sloping. a war occurs in the Middle East. the endowments of the factors of production changes 19- Cost-push inflation occurs when the aggregate supply curve shifts to the right, while aggregate demand remains stable. when the aggregate demand curve shifts to the left, while aggregate supply remains stable....
26. are The four components of planned aggregate expenditures a. Consumption, investment, inventories, and government purchases....

26. are The four components of planned aggregate expenditures a. Consumption, investment, inventories, and government purchases. b. Consumption, planned investment, unplanned changes in inventory, and exports. c. Consumption, investment, government purchases, and net exports. d. Consumption, investment, exports and imports. 27. The aggregate demand (AD) curve slopes downward indicating that a. an increase in the general price level will reduce the aggregate quantity of goods and services demanded. b. an increase in the general price level will increase the aggregate...

22) Using classical theory, an increase in the capital stock, other things equal, would cause 22)...

22) Using classical theory, an increase in the capital stock, other things equal, would cause 22) A) output to rise and price levels to fall B) output and prices to both rise C) a decrease in equilibrium employment D) an increase in labor supply and output 23) In the classical model; an increase in government spending funded by borowing would 23) A) increase demand for loanable funds, resulting in more consumption spending B) induce households to save more and firms...

Other things equal, an increase in productivity will: 1) reduce aggregate supply and increase real output....

Homework Answers

Add Answer to:
Other things equal, an increase in productivity will: 1) reduce aggregate supply and increase real output....

Post as a guest

Earn Coins

(1) Other things being equal, which of the following will increase aggregate expenditures? Group of answer...

5&6 5. Other things equal, if labor productivity improves, the: A. aggregate demand curve would shift...

Which would most likely shift the aggregate supply curve? A change in the prices of _____....

1. What effects would each of the following have on aggregate demand or aggregate supply (other...

How would aggregate demand change if foreign incomes increase and the exchange rate value of the...

Other things equal, an increase in the real interest rate leads to a. a decrease in...

An increase in the value of the dollar will lead to a. an increase in aggregate...

17- Both the long run and short run aggregate supply curve will shift when an event...

26. are The four components of planned aggregate expenditures a. Consumption, investment, inventories, and government purchases....

22) Using classical theory, an increase in the capital stock, other things equal, would cause 22)...

Other things equal, an increase in productivity will: 1) reduce aggregate supply and increase real output....

Homework Answers

Add Answer to: Other things equal, an increase in productivity will: 1) reduce aggregate supply and increase real output....

Post as a guest

Earn Coins

Add Answer to:
Other things equal, an increase in productivity will: 1) reduce aggregate supply and increase real output....