ZuoTi.Pro
Question

Which of the following will increase employment and lower the price level? [Please use an Aggregate...

Which of the following will increase employment and lower the price level? [Please use an Aggregate Demand and Aggregate Supply graph to answer this question] Select one: a. An improvement in the world economy b. An increase in the price of fossil fuels like petroleum and natural gas c. An increase in minimum wage d. A sharp rise in interest rates e. A fall in the cost of raw materials like cement and metals

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

Homework Answers

Answer #1

Ans) the correct option is e) A fall in the cost of raw materials like cement and metals

When there is a fall in the price of raw materials, the cost of production decreases which leads to increase in aggregate supply where as the aggregate demand will be intact

0 0
Add a comment
Know the answer?
Add Answer to:
Which of the following will increase employment and lower the price level? [Please use an Aggregate...
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

  • An increase in foreign prices relative to the price level in the

    An increase in foreign prices relative to the price level in the U.S. will cause: U.S. net exports to rise. US aggregate demand to fall. U.S.net exports to fallIf you are looking at a graph where a cumulative upward sloping curve plots the relationship between price level and output for suppliers, you are looking at a aggregate demand curve graph. aggregate supply curve graph. microeconomic supply graph.The economy has shifted and the quantity of the real GDP supplied has increased. What has potentially happened to aggregate...

  • Econ hw please help thank you! NAN Print Last Name, First Name 6. In a self-regulating...

    Econ hw please help thank you! NAN Print Last Name, First Name 6. In a self-regulating economy, inflationary gaps are automatically eliminated in the le run by: a. decreases in wage rates that cause short-run aggregate supply to shift rightwo decreases in wage rates that cause short-run aggregate supply to shift left word increases in wage rates that cause short-run aggregate supply to shift rightward increases in wage rates that cause short-run aggregate supply to shift leftward Assume the economy...

  • The following graph shows the economy in long-run equilibrium atthe expected price level of 120...

    The following graph shows the economy in long-run equilibrium at the expected price level of 120 and the natural level of output of $600 billion. Suppose a sudden and severe contraction in the housing market reduces the value of homes and causes consumers to spend less.Shift the short-run aggregate supply (AS) curve or the aggregate demand (AD) curve to show the short-run impact of the housing market slump.In the short run, the decrease in consumption spending associated with the housing...

  • please help Question 4 Which statement best characterizes what happens to the aggregate demand curve when...

    please help Question 4 Which statement best characterizes what happens to the aggregate demand curve when the price level rises? a. A rise in the price level moves the economy leftward along the aggregate demand curve. b. A rise in the price level shifts the aggregate demand curve to the left. C. A rise in the price level moves the economy rightward along the aggregate demand curve. d. A rise in the price level shifts the aggregate demand curve to...

  • 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...

  • An increase in the price level when the money wage rate remains unchanged increases _______

    The graph shows a long-run aggregate supply curve and a short-run aggregate supply curve. Draw an arrow along one of the curves that illustrate a rise in the price level when the money wage rate remains unchanged. Label it 1. Draw an arrow along one of the curves that illustrate a rise in the price level accompanied by the same percentage rise in the money wage rate. Label it 2.An increase in the price level when the money wage rate remains...

  • Aggregate Demand AS IT Price Level LAD2 i I AD 10 Real GDP 1. Circle the...

    Aggregate Demand AS IT Price Level LAD2 i I AD 10 Real GDP 1. Circle the correct answer: Based on the graph, the (flatter, steeper) aggregate supply curve results in a higher inflation and thus a (smaller, larger) multiplier effect. 2. Is this question true or false? If the aggregate supply curve is vertical, the multiplier will approach infinity. C False True What do you notice about the relationship between the real wage and the price level? Check all that...

  • please help William A. McEachern - Chapter Titles ‘Introduction to Macroeconomics’, ‘Aggregate Expenditure and Aggregate Demand,’...

    please help William A. McEachern - Chapter Titles ‘Introduction to Macroeconomics’, ‘Aggregate Expenditure and Aggregate Demand,’ & ‘Aggregate Supply’ Chapter ‘Introduction to Macroeconomics’ Q8.      Why does a decrease of the aggregate demand curve result in less employment, given an aggregate supply curve? Q9.      Is it possible for the price level to fall while production and employment both rise? If it is possible, how could this happen? If is is not possible, explain why not. P15.      Determine whether each of the following...

  • Question 4 Discuss the following statements: (a) According to the IS-LM model how would an increase...

    Question 4 Discuss the following statements: (a) According to the IS-LM model how would an increase of government spending affect equilibrium interest rates and income in a short-run closed macroeconomy. (b) According to the Classical Model of the aggregate economy, changes in aggregate demand have no effect on the amount of output produced, only the average pricelevel may be affected. (c) Crowding out through interest rates occurs when expansionary fiscal pol-icy causes interest rates to fall. (d) The relative bargaining...

  • Figure: The Money Supply and Aggregate Demand Panel (a) Panel (b) SRAS Price level Price level...

    Figure: The Money Supply and Aggregate Demand Panel (a) Panel (b) SRAS Price level Price level SRAS Y Real GDP (per year) Y Y Real GDP (per year) Refer to Figure: The Money Supply and Aggregate Demand. If the Federal Reserve intended to encourage investment and expand the economy, it would T reasury bills, the money supply, and interest rates. This is shown in panel O buy; increase; lower; (a) buy; decrease; lower; (a) buy; increase; raise: (a) O sell;...

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