if output is above its natural level, over time the price level will rise/fall, shifting the...
Homework Answers
If the output is above the natural level, over time the price level will rise as an output above the natural rate represents inflationary gap and that will lead to a higher wages in the coming time. and that will shift the LM curve to the left and the economy will be in long run equilibrium.
an increase in the price level act as the decrease in the money supply as the same money can buy less in the market.
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if
output is above its natural level, over time the price level will
rise/fall, shifting the...
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...
In the long run, the aggregate price level increases. This Select one: a. Is due to...
In the long run, the aggregate price level increases. This Select one: a. Is due to the short run AS curve shifting to the right and the economy producing a level of aggregate output that is not equal to its potential output b. is due to the AD curve shifting to the right c. Has no effect on the level of aggregate production in the economy. d. Results in the economy moving to the level of production where aggregate output...
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
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 firms become pessimistic about future business conditions and cut back on investment spending. shift the short-run aggregate supply (AS) curve or the aggregate demand (AD) curve to show the short-run impact of the business pessimism.
The first question option is (remain the same/fall/rise). the second question option (reducing/in...
the first question option is (remain the same/fall/rise). the
second question option (reducing/increasing). the third question
option (rise above/fall below)
the
option here is (rises above/falls below)
t Login or Register 6. Why the aggregate supply-curve slopes upward in the short run Apla Student G In the short run, the quantity of output that fims supply fronm from the expected price level. Several theories explain how this might happen can deviate from the natural rate of output if the actual...
16) Consider a macro model with a constant price level and demand-determined output. A rise in...
16) Consider a macro model with a constant price level and demand-determined output. A rise in the net tax rate ________ the simple multiplier and ________ equilibrium national income. A) lowers; raises B) lowers; lowers C) raises; raises D) lowers; has no effect on E) raises; has no effect on 17) Other things being equal, an exogenous fall in the domestic price level leads to a rise in private-sector wealth. As a result, there is A) a downward shift in...
The long-run equilibrium level of output is determined by (changes in the price level, consumer demand,...
The long-run equilibrium level
of output is determined by (changes in the price level,
consumer demand, capital, labor, and technology);
Therefore it will (increase to a new equilibrium, remain at
the full-employment level, decrease to a new equilibrium)
if the aggregate demand curve shifts to the right.
5. The long-run aggregate supply curve Aa Aa Suppose the hypothetical economy of Larryopia produces real GDP of $40 billion when unemployment is at its natural rate. Use the purple line (diamond symbols)...
Economics chart The following graph shows the economy in long-run equilibrium at the price level of...
Economics chart The following graph shows the economy in long-run equilibrium at the price level of 120 and potential output of $300 billion. Suppose several foreign economies experience severe recessions, causing foreign purchases of domestic goods and services to decline sharply. Shift the short-run aggregate supply (AS) curve or the aggregate demand (AD) curve to show the short-run impact of the economic turmoil abroad. Tool tip: Click and drag one or both of the curves. Curves will snap into position, so if...
12. When the Federal Reserve increases the money supply, at a given price level the amount...
12. When the Federal Reserve increases the money supply, at a given price level the amount of output demanded is and the aggregate demand curve shifts a. greater, inward b. greater, outward c. lower, inward d. lower, outward 13. Aggregate supply is the relationship between the quantity of goods and services supplied and the a. Money supply b. Unemployment rate c. Interest rate d. Price level If a short-run equilibrium occurs at a level of output above the natural level,...
The effects of a higher than expected price level are shown by a. shifting the short-run aggregate supply curve right. b...
The effects of a higher than expected price level are shown by a. shifting the short-run aggregate supply curve right. b. shifting the short-run aggregate supply curve left. c. moving to the right along a given aggregate supply curve. d. moving to the left along a given aggregate supply curve.
8. Economic fluctuations I The following graph shows the economy in long-run equilibrium at the expected...
8. Economic fluctuations I The following graph shows the economy in long-run equilibrium at the expected price level of 120 and the natural level of output of $300 billion. Suppose the government increases spending on building and repairing highways, bridges, and ports. Shift the short-run aggregate supply (AS) curve or the aggregate demand (AD) curve to show the short-run impact of the increase in government spending. In the short run, the increase in government spending on infrastructure causes the price level to _______...
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...
In the long run, the aggregate price level increases. This Select one: a. Is due to the short run AS curve shifting to the right and the economy producing a level of aggregate output that is not equal to its potential output b. is due to the AD curve shifting to the right c. Has no effect on the level of aggregate production in the economy. d. Results in the economy moving to the level of production where aggregate output...
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 firms become pessimistic about future business conditions and cut back on investment spending. shift the short-run aggregate supply (AS) curve or the aggregate demand (AD) curve to show the short-run impact of the business pessimism.
the first question option is (remain the same/fall/rise). the
second question option (reducing/increasing). the third question
option (rise above/fall below)
the
option here is (rises above/falls below)
t Login or Register 6. Why the aggregate supply-curve slopes upward in the short run Apla Student G In the short run, the quantity of output that fims supply fronm from the expected price level. Several theories explain how this might happen can deviate from the natural rate of output if the actual...
The long-run equilibrium level
of output is determined by (changes in the price level,
consumer demand, capital, labor, and technology);
Therefore it will (increase to a new equilibrium, remain at
the full-employment level, decrease to a new equilibrium)
if the aggregate demand curve shifts to the right.
5. The long-run aggregate supply curve Aa Aa Suppose the hypothetical economy of Larryopia produces real GDP of $40 billion when unemployment is at its natural rate. Use the purple line (diamond symbols)...
12. When the Federal Reserve increases the money supply, at a given price level the amount of output demanded is and the aggregate demand curve shifts a. greater, inward b. greater, outward c. lower, inward d. lower, outward 13. Aggregate supply is the relationship between the quantity of goods and services supplied and the a. Money supply b. Unemployment rate c. Interest rate d. Price level If a short-run equilibrium occurs at a level of output above the natural level,...
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