ZuoTi.Pro
Question

Which of the following shifts the short-run aggregate supply curve right? a. both an increase in the price level that is greater than expected and an increase in the expected price level. b. an increase in the price level that is greater than expected, but not an increase in the expected price level. c. an increase in the expected price level, but not an increase in the price level that is greater than expected. d. neither an increase in the price level that is greater than expected nor an increase in the expected price level.Please explain. Thank you!

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

The correct option is B.

If increases in the price level is greater than expected price.if not expected price increases.

If labor will expect the price increases then labor will demand higher wage and cost of production increases then shift leftward only rightward shift in AS if expectations in price level does not change.

0 0
Add a comment
Know the answer?
Add Answer to:
Please explain. Thank you! Which of the following shifts the short-run aggregate supply curve right? a....
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • which of the following shifts both short-run and long_run aggregate supply left? mestic Question 13 Not...

    which of the following shifts both short-run and long_run aggregate supply left? mestic Question 13 Not yet answered Which of the following shifts both short-run and long-run aggregate supply left? Points out of 100 Flag question d. Select one: a. a decrease in the actual price level b. a decrease in the expected price level c. a decrease in the capital stock d. a decrease in the money supply eks

  • 1) The long-run aggregate supply curve shifts to the right when there is A) a decrease...

    1) The long-run aggregate supply curve shifts to the right when there is A) a decrease in the total amount of capital in the economy. B) a decrease in the total amount of labor supplied in the economy. C) a decrease in the available technology. D) a decline in the natural rate of unemployment. 2) The short-run aggregate supply curve shifts to the right when A) output gap is higher. B) output gap is lower. C) expected inflation is higher....

  • Which of the following will increase both the​ short-run and​ long-run aggregate supply​ curves? A. There...

    Which of the following will increase both the​ short-run and​ long-run aggregate supply​ curves? A. There are fewer firms involved in perfectly competitive and monopolistically competitive market structures as the economy features more oligopolies than before. B. The wage rate temporarily decreases throughout the economy. C. Younger workers in the labour force receive better and more training than their predecessors. D. The supply of key raw​ materials, such as petroleum and​ bauxite, is reduced. Which of the following is true...

  • 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....

  • The effects of a higher than expected price level are shown by a. shifting the short-run aggregate supply curve right. b...

    The effects of a higher than expected price level are shown by a. shifting the short-run aggregate supply curve right. b. shifting the short-run aggregate supply curve left. c. moving to the right along a given aggregate supply curve. d. moving to the left along a given aggregate supply curve.

  • 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. . (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...

  • 12- Refer to Exhibit 10.1, which shows the short-run aggregate supply (SRAS) curve of an economy....

    12- Refer to Exhibit 10.1, which shows the short-run aggregate supply (SRAS) curve of an economy. What happens to short run aggregate supply if prices are lower than expected? a. SRAS shifts right. b. SRAS shifts left. c. There is a downward movement along SRAS to Y2. d. Nothing happens in the short run. e. There is an upward movement along SRAS to Y3.   

  • 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...

  • 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            ...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT