Question 4 A vertical aggregate supply schedule implies that a. real wages cannot impact output. b....
Question 4
-
A vertical aggregate supply schedule implies that
a. real wages cannot impact output.
b. unemployment cannot impact output.
c. aggregate demand is horizontal.
d. the price level does not impact output.
Homework Answers
"D"
it means that as the price in the market changes the other factors like the wages and the employment adjust very quickly and that will leave the aggregate supply curve as a vertical line. The answer is "D".
Add Answer to:
Question 4
A vertical aggregate
supply schedule implies that
a.
real wages cannot
impact output.
b....
The vertical classical aggregate supply curve reflects that A. nominal wages adjust proportionally with the price...
The vertical classical aggregate supply curve reflects that A. nominal wages adjust proportionally with the price level. B. real wages are always the same. C. aggregate output is always the same. D. None of the above. E. Both b and c.
1. Aggregate supply definitions The short-run aggregate supply curve shows: What happens to output in an...
1. Aggregate supply definitions The short-run aggregate supply curve shows: What happens to output in an economy when the government spends more money How firms respond to changes in interest rates Changes in output in an economy as the price level changes, holding all other determinants of real GDP constar The relationship between the price level and aggregate expenditure Which of the following are assumed to remain unchanged along a given short-run aggregate supply curve? Check all that The price...
The economic model of aggregate demand curve and aggregate supply curve helps explain the A. three...
The economic model of aggregate demand curve and aggregate supply curve helps explain the A. three goals of economic policy which are economic growth, high inflation, and full employment. B. expansion and contractions in individual markets. C. shifts in real GDP and the price level. Which of the following descriptions reflects the AD-AS model most accurately? A. Real GDP is shown on the vertical axis and the price level is shown on the horizontal axis. B. Aggregate supply is shown...
Describe the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve. A. the...
Describe the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve. A. the SRAS curve is horizontal and the LRAS curve is upward sloping B. the SRAS curve is horizontal and the LRAS curve is vertical C. the SRAS curve is vertical and the LRAS curve is horizontal D. the SRAS curve is vertical and the LRAS curve is upward sloping Why is the short-run aggregate supply curve horizontal? A. because output is fixed in the short...
1. Modern macroeconomists tend to believe that an increase in aggregate spending A) increases real output,...
1. Modern macroeconomists tend to believe that an increase in aggregate spending A) increases real output, especially in a depressed economy with lots of excess capacity, but also increases the price level, especially in an economy with little excess capacity B) always increases real output without affecting the price level as the simplest version of the "Keynesian cross" model with a fixed price level impliesalways increases real output without affecting the price level as the simplest version of the "Keynesian...
QUESTION 4 With an upward-sloping aggregate supply curve, real output can be increased to the full...
QUESTION 4 With an upward-sloping aggregate supply curve, real output can be increased to the full employment output level if: O A Government expenditures are increased by the amount of the GDP gap. O B. Government expenditures are increased by the amount of the AD shortfall. C. Aggregate demand is increased by the amount of the GDP gap. o D. Govenment expenditures are increased by the amount of the AD shortfall divided by the multiplier QUESTION 5 To eliminate an...
QUESTION 25 Which of the following best describes the long run in terms of aggregate supply?...
QUESTION 25 Which of the following best describes the long run in terms of aggregate supply? a. The long-run aggregate supply curve is horizontal. b. The long-run aggregate supply slopes upwards, but is NOT vertical. c. The long-run aggregate supply slopes downwards. d. The long-run aggregate supply curve is vertical. Question 39 Which of the following best characterizes market equilibrium? a. when there is no incentive for consumers or producers to change their current behaviour b. when producers earn profits...
1. In addition to the price level, what does the aggregate demand and aggregate supply model...
1. In addition to the price level,
what does the aggregate demand and aggregate supply model focus
on?
a. real
GDP
b.
nominal GDP
c.
the real interest rate
d. stock
prices
2. Which statement best characterizes the long-run
aggregate-supply curve?
a. It is
horizontal.
b. It
shows a positive relationship between price level and output.
c.
It demonstrates the importance of money in the economy....
Number 2. If the price level increases to 107 then youur s Question Completion Status The economy enters the long-run once: O Nominal wages become real wages o Real wages become nominal wages suff...
Number 2. If the price level increases to 107 then
youur
s Question Completion Status The economy enters the long-run once: O Nominal wages become real wages o Real wages become nominal wages sufficient time has elapsed for wage contracts to expire and nominal wage to adj O Sufficient time has elapsed for real GDP to increase and unemployment to decrea QUESTION 3 Assume that initially your nominal wage was $16 an hour and the price index was 100 O...
If potential output exceeds actual real output by a wide margin, this implies: Select one: a....
If potential output exceeds actual real output by a wide margin, this implies: Select one: a. an excess of imports over exports b. a high rate of unemployment c. that the majority of consumer demand has changed from goods to services d. a sharply rising price level e. that the majority of consumer demand has changed from services to goods
The vertical classical aggregate supply curve reflects that A. nominal wages adjust proportionally with the price level. B. real wages are always the same. C. aggregate output is always the same. D. None of the above. E. Both b and c.
1. Aggregate supply definitions The short-run aggregate supply curve shows: What happens to output in an economy when the government spends more money How firms respond to changes in interest rates Changes in output in an economy as the price level changes, holding all other determinants of real GDP constar The relationship between the price level and aggregate expenditure Which of the following are assumed to remain unchanged along a given short-run aggregate supply curve? Check all that The price...
QUESTION 4 With an upward-sloping aggregate supply curve, real output can be increased to the full employment output level if: O A Government expenditures are increased by the amount of the GDP gap. O B. Government expenditures are increased by the amount of the AD shortfall. C. Aggregate demand is increased by the amount of the GDP gap. o D. Govenment expenditures are increased by the amount of the AD shortfall divided by the multiplier QUESTION 5 To eliminate an...
1. In addition to the price level,
what does the aggregate demand and aggregate supply model focus
on?
a. real
GDP
b.
nominal GDP
c.
the real interest rate
d. stock
prices
2. Which statement best characterizes the long-run
aggregate-supply curve?
a. It is
horizontal.
b. It
shows a positive relationship between price level and output.
c.
It demonstrates the importance of money in the economy....
Number 2. If the price level increases to 107 then
youur
s Question Completion Status The economy enters the long-run once: O Nominal wages become real wages o Real wages become nominal wages sufficient time has elapsed for wage contracts to expire and nominal wage to adj O Sufficient time has elapsed for real GDP to increase and unemployment to decrea QUESTION 3 Assume that initially your nominal wage was $16 an hour and the price index was 100 O...
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