A temporary adverse productivity shock would:
A) shift the FE line to the right and leave the IS curve unchanged
B) shift the FE line to the left and leave the IS curve unchanged
C) shift the FE line to the left and the IS curve up
D) have no effect on the FE line
please explain!
A temporary adverse productivity shock would: A) shift the FE line to the right and leave...
factors that shift the AD Curve include A) government purchases B) autonomous investment C) taxes D) all of the above E) none of the above 33. If government cuts taxes A) after tax income should increase shifting AD to the left to a lower cu B) after tax income should increase shifting AD to the right to a higher eq output C) after tax income and the equilibrium level of output remain unchanged D) after tax income remains unchanged but...
Consider the impact of a decrease in effective tax rate on capital. The shock is most likely to affect the A. FE line. B. LM curve. C. IS curve. D. AS curve. In the short run, before general equilibrium is restored, the IS curve shifts _____ and causes _____. A. up and to the right; no change in the real interest rate or the price level B. up and to the right; the real interest rate to rise and the...
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...
An adverse supply shock would shift: a. only the long-run aggregate supply curve inward. b. only the short-run aggregate supply curve inward. c. both the long-run and the short-run aggregate supply curves inward. d. only the short-run aggregate supply curve outward. e. only the long-run aggregate supply curve outward.
In the MS/P -- L(Y,r) diagram, a shift to the right of L(Y,r) line -- with an unchanged Y -- would cause? Group of answer choices a shift to the right of the IS curve and a shift to the right of the AD curve. a shift to the left of the LM curve but no change to the AD curve. a shift to the right of the LM curve and a shift to the right of the AD curve....
d ises by $300. falls by 5900 se acconomy -.1 -Io, and 30, and Suppose an economy has following information C- C YYY- Tlo, and 6 -Go where C-135, -0.8, lo -75, Go - 30, and T O 3. The equilibrium level of income of the above economy 1 A) 1.200 B) 1.250 C) 1,300 D) None of above kes and spend the $100 (i.e, government budget 6. IT MPC is 75 and government collects $100 taxes and spend the...
Which of the following statements best describes how economic growth is represented i n the AD/AS diagram? In the AD/AS diagram, long-run economic growth due to productivity increases over time will be represented by a gradual shift to the right of aggregate supply. In the AD/AS diagram, short-run economic growth due to productivity increases over time will be represented by a dramatic shift to the right of aggregate supply. In the AD/AS diagram, short-run economic growth due to productivity increases...
What is the difference between a progressive tax and a regressive tax? Give an example of each. percentage of their incomes in tax than do people with higher incomes, and a regressive tax is a tax for A progressive tax a tax for which people with lower incomes pay a which people with lower incomes pay a percentage of their incomes in tax than do people with higher incomes. higher lower Assume the market for labor is initially in equilibrium....
How will shift right in supply affect equilibrium price, assuming demand remains constant? a. increase b. decrease c.will not affect it d. cannot be determined According to the law of demand, if the price of a good decreases, its Qd? a. decreases b. increases c. goes to zero d. stays constant According to the income effect, price changes equal changes in? a. money income b.real income c.demand d. utility on the demand curve a chance in price leads a. no...
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....