When potential GDP increases, Question 3 options: the AS curve shifts rightward. there is a movement...
When potential GDP increases,
Question 3 options:
|
the AS curve shifts rightward. |
|
|
there is a movement up along the AS curve. |
|
|
the AS curve shifts leftward. |
|
|
there is a movement down along the AS curve. |
|
|
there is neither a movement along nor a shift in the AS curve. |
Homework Answers
The AS curve shifts rightwards
The potential GDP is a vertical line that represents the highest output an economy can produce if it were to employ all its labor,capital and technology. The AS curve shows how much output the economy produces with respect to the prices. As the prices increase,firms are willing to spend more,but it gets vertical near the potential GDP as even if prices increase,output cannot be increased much since All the labor,technology etc. are already employed. So a shift in the potential GDP will shift the entire AS curve so that it gets vertical near the new potential GDP
Add Answer to:
When potential GDP increases,
Question 3 options:
the AS curve shifts rightward.
there is a movement...
38.39,40 Question 38 (2 points) When potential GDP increases. 1) the AS curve shifts rightward. 2)...
38.39,40
Question 38 (2 points) When potential GDP increases. 1) the AS curve shifts rightward. 2) there is a movement up along the AS curve. 3) the AS curve shifts leftward. 0 4) there is a movement down along the AS curve. Question 39 (2 points) Which of the following produces a movement along the aggregate demand curve? 1) a change in foreign incomes 2) a change in the price level 3) a change in monetary policy 4) a change...
The 2008-2009 recession must have been a result of ________ because otherwise the combination of the...
The 2008-2009 recession must have been a result of ________ because otherwise the combination of the ________ cannot be explained. Question 29 options: a decrease in AD and an increase in AS; fall in the price level and the decrease in real GDP a decrease in AD and an increase in AS; rise in the price level and the decrease in real GDP an increase in AD and AS; rise in the price level and the decrease in real GDP...
When the price level falls, aggregate demand ______. decreases and the AD curve shifts leftward does...
When the price level falls, aggregate demand ______. decreases and the AD curve shifts leftward does not change, but the quantity of real GDP demanded decreases and a movement up along the AD curve occurs does not change, but the quantity of real GDP demanded increases and a movement down along the AD curve occurs increases and the AD curve shifts rightward When Europe trades with Mexico and goes into a recession, ______.
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.
If firms' expectations about the future become pessimistic so that they think future profits will be...
If firms' expectations about the future become pessimistic so that they think future profits will be lower, then A. aggregate demand decreases and the AD curve shifts leftward. B. the aggregate demand curve does not shift but potential GDP decreases. C. aggregate demand increases and the AD curve shifts rightward. D. the quantity of real GDP demanded decreases and there is a movement up along the AD curve. E. the quantity of real GDP demanded increases and there is a...
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 spending growth causes: A:an upward movement along the AD curve. B:a rightward shift...
An increase in spending growth causes: A:an upward movement along the AD curve. B:a rightward shift of the AD curve. C:a downward movement along the AD curve. D:a leftward shift of the AD curve.
Chapter 3 When Demand increases, is that a shift of the curve or a movement along...
Chapter 3 When Demand increases, is that a shift of the curve or a movement along the curve? Determine the direction of the shift or movement. When Supply de creases, is that a shift of the curve or a movement along the curve? Determine the direction of the shift or movement. When quantity demanded increases, is that a shift of the curve or a movement along the curve? Determine the direction of the shift or movement. When quantity supply decreases,...
If real GDP is greater than potential GDP, then the _ and the price level _....
If real GDP is greater than potential GDP, then the _ and the price level _. a.) aggregate supply curve shifts leftward, rises b.) aggregate demand curve shifts rightward, falls c.) aggregate supply curve shifts rightward, falls d.) aggregate demand curve shifts leftward, rises
Same Options for both If the price of a good increases, (Click to select) . The...
Same Options for both
If the price of a good increases, (Click to select) . The supply curve (Click to select) If prices in the market are expected to be higher in the future, at the present time, . The supply curve(Click to select) (Click to select) If the price of a good increases, (Click to select) . The supply curve (Click to select) If prices in the market are expected to be higher in the future, at the present...
38.39,40
Question 38 (2 points) When potential GDP increases. 1) the AS curve shifts rightward. 2) there is a movement up along the AS curve. 3) the AS curve shifts leftward. 0 4) there is a movement down along the AS curve. Question 39 (2 points) Which of the following produces a movement along the aggregate demand curve? 1) a change in foreign incomes 2) a change in the price level 3) a change in monetary policy 4) a change...
Chapter 3 When Demand increases, is that a shift of the curve or a movement along the curve? Determine the direction of the shift or movement. When Supply de creases, is that a shift of the curve or a movement along the curve? Determine the direction of the shift or movement. When quantity demanded increases, is that a shift of the curve or a movement along the curve? Determine the direction of the shift or movement. When quantity supply decreases,...
Same Options for both
If the price of a good increases, (Click to select) . The supply curve (Click to select) If prices in the market are expected to be higher in the future, at the present time, . The supply curve(Click to select) (Click to select) If the price of a good increases, (Click to select) . The supply curve (Click to select) If prices in the market are expected to be higher in the future, at the present...
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