Part 4: Complete the following chart by stating whether each measure increases or decreases: Shift Price...
Part 4: Complete the following chart by stating whether each measure increases or decreases:
|
Shift |
Price Level |
Real GDP |
Unemployment Rate |
|
Aggregate Demand increases |
|||
|
Aggregate Demand decreases |
|||
|
Aggregate Supply increases |
|||
|
Aggregate Supply decreases |
Homework Answers
Answer : Aggregate demand increases : When aggregate demand increase then the aggregate demand curve shift to rightward. As a result, the price level increase and real GDP increase . Due to increase in real GDP the employment level increase which decrease the unemployment rate.
Aggregate demand decreases : When aggregate demand decrease then the aggregate demand curve shift to leftward. As a result, the price level decrease and real GDP decrease . Due to decrease in real GDP the employment level decrease which increase the unemployment rate.
Aggregate supply increases : When aggregate supply increase then the aggregate supply curve shift to rightward. As a result, the price level decrease and real GDP increase . Due to increase in real GDP the employment level increase which decrease the unemployment rate.
Aggregate supply decreases : When aggregate supply decrease then the aggregate supply curve shift to leftward. As a result, the price level increase and real GDP decrease . Due to decrease in real GDP the employment level decrease which increase the unemployment rate.
Add Answer to:
Part 4: Complete the following chart by stating whether
each measure increases or decreases:
Shift
Price...
2. Suppose the economy is in long-run equilibrium, with real GDP at $19 trillion and the unemployment rate at 5%. Now assume that the central bank unexpectedly decreases money supply by 6%. a) Illust...
2. Suppose the economy is in long-run equilibrium, with real GDP at $19 trillion and the unemployment rate at 5%. Now assume that the central bank unexpectedly decreases money supply by 6%. a) Illustrate the short-run effects of the monetary policy by using aggregate demand-aggregate supply model. Be sure to indicate the direction of change in real GDP, the price level and the unemployment rate. b) Illustrate the long-run effects of the monetary policy by using aggregate demand-aggregate supply model....
Determine whether the supply of resources increases would cause a shift of the aggregate demand curve...
Determine whether the supply of resources increases would cause a shift of the aggregate demand curve a shift of the aggregate supply curve neither or both. Which curve shift in which direction? What happened to the aggregate output and the price level in each case?
1. What occurs during a negative demand shock? Output increases and the price level decreases. Output...
1. What occurs during a negative demand shock? Output increases and the price level decreases. Output and price level decrease. Output and price level increase. Output decreases and the price level increases. 2. In the equation of exchange, the term P × Q is the same as: the money supply. nominal GDP. national income. real GDP. 3. Expansionary monetary policy shifts the _____ curve to the _____. AD; right SRAS; left SRAS; right AD; left 4. The Taylor rule suggests...
Long run aggregate supply is the relationship between the quantity of real GDP supplied and the...
Long run aggregate supply is the relationship between the quantity of real GDP supplied and the price level when the maintain full employment changes in step with the price level to O A. money wage rate OB. quantity of money OC. real wage rate OD. interest rate supplied and the when the money wage rate, the prices of other resources and Short run aggregate supply is the relationship between the quantity of potential GDP remain constant O A real GDP...
When the price level increases, aggregate planned expenditure decreases, which leads to A. a rightward shift...
When the price level increases, aggregate planned expenditure decreases, which leads to A. a rightward shift of the aggregate demand curve. B. a leftward shift of the aggregate demand curve. C. an upward movement along the aggregate demand curve. D. a downward movement along the aggregate demand curve. E. neither a movement along nor a shift of the aggregate demand curve.
Question 56 (1 point) Consider the aggregate supply-aggregate demand model. How does an increase in aggregate...
Question 56 (1 point) Consider the aggregate supply-aggregate demand model. How does an increase in aggregate demand affect the unemployment rate and the inflation rate? LRAS: SRAS Price level (GDP deflator 2009 = 100) AD AD AD GDP, GDP, GDP AD AD AD2 GDP, GDP, GDP; Real GDP (trillions of 2009 dollars) The unemployment rate decreases and the inflation rate increases. ia The unemployment rate increases and the inflation rate decreases. Both the unemployment rate and the inflation rate increase....
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...
An increase in the price level will A) shift the aggregate demand curve to the left.
7) An increase in the price level will A) shift the aggregate demand curve to the left. B) shift the aggregate demand curve to the right. C) move the economy up along the aggregate demand curve. D) move the economy down along the aggregate demand curve. 8) Expansionary monetary policy involves A) reducing money supply and lowering taxes B) increasing money supply to decrease interest rate C) increasing government spending and cutting money supply D) increasing the interest rate and increasing taxes 9) Long-run macroeconomic equilibrium occurs when A) aggregate demand...
Inflationary pressure in the AS-AD model can be shown as a leftward shift of the AD...
Inflationary pressure in the AS-AD model can be shown as a leftward shift of the AD curve when the economy is already producing at its potential GDP. supply shock that shifts the AS to the right. rightward shift of the AD curve when the economy is already producing at its potential GDP. Typically, if consumer and business confidence is high then ________ and if consumer and business confidence is low then ________. AD shifts to the left; AD shifts to...
in the short run. In the long-run, An expansion in aggregate demand increases however, it increases...
in the short run. In the long-run, An expansion in aggregate demand increases however, it increases only the a. real GDP, price level ob.real GDP, velocity of money c. the unemployment rate, price level d. the unemployment rate, velocity of money
2. Suppose the economy is in long-run equilibrium, with real GDP at $19 trillion and the unemployment rate at 5%. Now assume that the central bank unexpectedly decreases money supply by 6%. a) Illustrate the short-run effects of the monetary policy by using aggregate demand-aggregate supply model. Be sure to indicate the direction of change in real GDP, the price level and the unemployment rate. b) Illustrate the long-run effects of the monetary policy by using aggregate demand-aggregate supply model....
Long run aggregate supply is the relationship between the quantity of real GDP supplied and the price level when the maintain full employment changes in step with the price level to O A. money wage rate OB. quantity of money OC. real wage rate OD. interest rate supplied and the when the money wage rate, the prices of other resources and Short run aggregate supply is the relationship between the quantity of potential GDP remain constant O A real GDP...
Question 56 (1 point) Consider the aggregate supply-aggregate demand model. How does an increase in aggregate demand affect the unemployment rate and the inflation rate? LRAS: SRAS Price level (GDP deflator 2009 = 100) AD AD AD GDP, GDP, GDP AD AD AD2 GDP, GDP, GDP; Real GDP (trillions of 2009 dollars) The unemployment rate decreases and the inflation rate increases. ia The unemployment rate increases and the inflation rate decreases. Both the unemployment rate and the inflation rate increase....
in the short run. In the long-run, An expansion in aggregate demand increases however, it increases only the a. real GDP, price level ob.real GDP, velocity of money c. the unemployment rate, price level d. the unemployment rate, velocity of money
Most questions answered within 3 hours.
-
Write a program to solve the Josephus problem, with the following
modification:
Sample Input:
./a.out n...
asked 1 hour ago -
At the start of a CD it is spinning at a rate of 525 rpm
(revolutions...
asked 2 hours ago -
4. Without doing any calculations, predict whether the observed
∆T would increase, decrease or remain the...
asked 3 hours ago -
Based on the range, which of the following sets of scores has
the greatest variability? 3,...
asked 4 hours ago -
Ripples in a pond travel at a velocity of 3 m/s with one peak
passing a...
asked 4 hours ago -
A man stands on the roof of a building of height 13.0 mm and
throws a...
asked 4 hours ago -
The extent to which assets are financed by borrowed funds and
other liabilities is indicated by:...
asked 5 hours ago -
Explain in detail
Germany is the fifth largest economy
explain what goods and services Germany specializes...
asked 6 hours ago -
The density of platinum is 21.45 g/mL. If a cube of platinum
with a mass of...
asked 6 hours ago -
Accounts Receivable
Sales
A/R Posting
Extended Sales Invoice
Packing Slip
Compare invoice to packing slip 2...
asked 6 hours ago -
Michaella, age 23, is a full-time law student and is claimed by
her parents as a...
asked 6 hours ago -
Why are polymers not typically casted into products?
asked 6 hours ago