What happens to real GDP and the price level, if a country enters a war and...
What happens to real GDP and the price level, if a country enters a war and
experiences destruction of its human and physical capital stocks? Assume that initially the
economy is at its long-run equilibrium.
Homework Answers
This will decrease the resources that the nation has and shift the LRAS curve to the left, this will also shift the SRAS to then left, the new equilibrium in the economy will be at a lower potential output and higher price than previous output, the real GDP will fall.
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What happens to real GDP and the price level, if a country
enters a war and...
What happens to U.S. real GDP and the price level in the short run, when a...
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For each of the cases below, indicate whether the price level and level of real GDP...
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Find and explain questions 1-3 Using an AD/AS model, describe what happens to the price level...
Find and explain questions 1-3
Using an AD/AS model, describe what happens to the price level and output in Canada in the short run as a major hurricane destroys important Canadian production plants. Assume that the economy starts in a long-and short-run macroeconomic equilibrium. a) Price and output increase. b) Price and output decrease. c) Price increases and output decreases. d) Price decreases and output increases. Using an AD/AS model, describe what happens to the price level and output in...
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Which of the following is not a determinant of the long-run level of real GDP? A....
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Assume that the economy starts at potential output, and then there is a major decline in new home construction. a) Describe the short-run impact of this change on real GDP and the price level. Be spec...
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Indicate the change (if any) to a nation's long-run equilibrium real GDP and price level from...
Indicate the change (if any) to a nation's long-run equilibrium real GDP and price level from the following combination of factors. Productivity declines and there is more money in circulation This would cause the nation's long-run equilibrium real GDP to and the price level to increase change in an indeterminate way decrease
Thank You! QUESTION 30 Aggregate price level x Real GDP in the price level and a...
Thank You!
QUESTION 30 Aggregate price level x Real GDP in the price level and a decrease in the In the Aggregate Demand and Supply model (shown), an increase in nominal wages would cause an increase equilibrium level or real GDP in the short run. QUESTION 31 Aggregate price level Real GDP In the Aggregate Demand and Supply model (shown), if the government's budget deficit increases as a result of a tax cut with no cuts in spending, the result...
Refer to the data in the table below. Suppose that the present equilibrium price level and level of real GDP are 100 an...
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For each of the cases below, indicate whether the price level and level of real GDP will go "up","down", or stay the same." Assume that prices are flexible in both directions unless the information given indicates otherwise. The term in parentheses indicates whether the economy is operating in the immediate short run, short run, or long run. Answers may be used more than once. Expansionary fiscal policy. (long run) A. Price level down; real GDP same Development of alternative energy...
Find and explain questions 1-3
Using an AD/AS model, describe what happens to the price level and output in Canada in the short run as a major hurricane destroys important Canadian production plants. Assume that the economy starts in a long-and short-run macroeconomic equilibrium. a) Price and output increase. b) Price and output decrease. c) Price increases and output decreases. d) Price decreases and output increases. Using an AD/AS model, describe what happens to the price level and output in...
Indicate the change (if any) to a nation's long-run equilibrium real GDP and price level from the following combination of factors. Productivity declines and there is more money in circulation This would cause the nation's long-run equilibrium real GDP to and the price level to increase change in an indeterminate way decrease
Thank You!
QUESTION 30 Aggregate price level x Real GDP in the price level and a decrease in the In the Aggregate Demand and Supply model (shown), an increase in nominal wages would cause an increase equilibrium level or real GDP in the short run. QUESTION 31 Aggregate price level Real GDP In the Aggregate Demand and Supply model (shown), if the government's budget deficit increases as a result of a tax cut with no cuts in spending, the result...
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