Question

Detailed explanations please! I am confused

Other things the same, an increase in the expected price level shifts a short-run aggregate supply right b. short-run aggregate supply left c. aggregate-demand right. d. aggregated-demand left Figure 35-1. The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregato-demand (AD) curves. On the right-hand diagram, U represents the unemployment rate Phallips Curve SRAS 30 \B 130 15 115 High AD :Low AD 0% 10% 2 Refer to Figure 35-1. The curve that is depicted on the right-hand graph offers policymakers a "menu"of a that applies both in the short run and in the long run b. that is relevant to choices involving fiscal policy, but not to choices involving monetary policy c. of inflation and unemployment d. All of the above are correct. 13. Refer to Figure 35-1. What is measured along the hornizontal wxis of the left-hand graph? a the wage rate b. the inflation rate C. employment d. output 14. There isa a. short-run tradeoff between inflation and unemployment b. short-run tradeofT between the actual unemployment rate and the natural rate of unemployment c. long-run tradeoff between inflation and unemployment d. long-run tradeof between the actual unemployment rate and the natural rate of unemployment

Answer 1

11.

B

As a result of shift to the left of SRAS, Price level will increase.

12.

C

It is the representation of SR Phillips curve, involving inflation and unemployment.

13.

D

More precisely, it is real output of the economy.

14.

A

This trade-off is shown by the short run Phillips curve.