The aggregate supply curve will shift to the right when: A: government spending increases B: the...
The aggregate supply curve will shift to the right when:
A: government spending increases
B: the capital stock of the economy decreases
C: the nominal wage rate increases
D: energy prices fall.
I am thinking the answer is D--is this correct? B and C are leftward shifts, and I believe A affects Aggregate Demand rather than Aggregate Supply.
Homework Answers
ANswer
Option D
the increase in government spending increases aggregate demand and shifts it to the right and it is a movement along with the aggregate supply toward the right but it is not a shift.
A decrease in capital stock decreases short run and long-run aggregate supply curve to the left as the resources in the economy decreased.
the increase in nominal wages decreases the aggregate supply and shifts it to the left.
A decrease in the price of energy increases the aggregate supply as energy is a widely used input can influence the aggregate supply. It shifts AS to right
Add Answer to:
The aggregate supply curve will shift to the right when:
A: government spending increases
B: the...
The aggregate supply curve will shift to the left if A. energy prices fall B. the...
The aggregate supply curve will shift to the left if A. energy prices fall B. the capital stock of the economy increases C. the money wage rate increases D. technology & productivity increase in the economy
1. If the government reduces spending A) the IS curve will shift to the right B)...
1. If the government reduces spending A) the IS curve will shift to the right B) output will increase if interest rates remain fixed C) consumption will increase D) all of the above 2. If the government cuts taxes A) disposable income falls B) planned expenditures rise C) the IS curve shifts to the left D) all of the above 3. Qualitatively, an increase in government purchases has the same impact as an increase in autonomous A) consumption B) investment...
Please help with both questions The short-run aggregate supply curve is horizontal when Othere are unemployed...
Please help with both questions
The short-run aggregate supply curve is horizontal when Othere are unemployed resources and prices do not increase when aggregate demand increases. there are no unemployed resources and prices do not increase when aggregate demand or supply increases. prices are inflexible and the economy is at full employment. Othere are unemployed resources and prices do not decrease when aggregate supply increases. 0.5 points Save Answer QUESTION 6 A reduction in nominal wages will cause which of...
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to...
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to the right. tne long-run aggregate supply curve shifts to the left. C) the 20) When aggregate demand curve shifts to the left. the short-run aggregate supply curve shifts to the left. t spending without an accompanying increase 21) An increase in govenment spending n taxes demand A) does not increase aggregate B) would effectively eliminate an inflationary gap. Q mquires additional govemment borrowing spending...
Which would most likely shift the aggregate supply curve? A change in the prices of _____....
Which would most likely shift the aggregate supply curve? A change in the prices of _____. domestic products foreign products financial assets resources A decrease in aggregate demand in the short run will reduce _____. both real output and the price level the price level and increase the real domestic output the real domestic output and have no effect on the price level the price level and have no effect on real domestic output The economy's long-run AS curve assumes...
15. The short-run aggregate supply curve will shift to the: right if commodity prices i...
15.
The short-run aggregate supply curve will shift to the:
right if commodity prices increase.
left if productivity increases.
left if nominal wages increase.
right if government spending increases.
35.
An expansionary fiscal policy either _____ government spending
or _____ taxes.
decreases; increases
decreases; decreases
increases; decreases
increases; increases
12.
The short run in macroeconomic analysis is a period:
in which many production costs can be taken as fixed.
in which interest rates are fixed.
of two months, and the...
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...
5) If consumption increases by $200 and, in response, equilibrium aggregate expenditure increases by $600, the...
5) If consumption increases by $200 and, in response, equilibrium aggregate expenditure increases by $600, the multiplier is A) 5 B) 0.5.C)2. D) 0.3. 6) When the GDP in Kuwait rises relative to the GDP in other countries, will fall and will fall A) exports; imports B) exports; net exports C) imports; net exports D) net exports; imports 7) An increase in the price level will A) shift the aggregate demand curve to the left. B) shift the aggregate demand...
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.
An increase in the price level will A) shift the aggregate demand curve to the left.
7) An increase in the price level will A) shift the aggregate demand curve to the left. B) shift the aggregate demand curve to the right. C) move the economy up along the aggregate demand curve. D) move the economy down along the aggregate demand curve. 8) Expansionary monetary policy involves A) reducing money supply and lowering taxes B) increasing money supply to decrease interest rate C) increasing government spending and cutting money supply D) increasing the interest rate and increasing taxes 9) Long-run macroeconomic equilibrium occurs when A) aggregate demand...
1. If the government reduces spending A) the IS curve will shift to the right B) output will increase if interest rates remain fixed C) consumption will increase D) all of the above 2. If the government cuts taxes A) disposable income falls B) planned expenditures rise C) the IS curve shifts to the left D) all of the above 3. Qualitatively, an increase in government purchases has the same impact as an increase in autonomous A) consumption B) investment...
Please help with both questions
The short-run aggregate supply curve is horizontal when Othere are unemployed resources and prices do not increase when aggregate demand increases. there are no unemployed resources and prices do not increase when aggregate demand or supply increases. prices are inflexible and the economy is at full employment. Othere are unemployed resources and prices do not decrease when aggregate supply increases. 0.5 points Save Answer QUESTION 6 A reduction in nominal wages will cause which of...
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to the right. tne long-run aggregate supply curve shifts to the left. C) the 20) When aggregate demand curve shifts to the left. the short-run aggregate supply curve shifts to the left. t spending without an accompanying increase 21) An increase in govenment spending n taxes demand A) does not increase aggregate B) would effectively eliminate an inflationary gap. Q mquires additional govemment borrowing spending...
15.
The short-run aggregate supply curve will shift to the:
right if commodity prices increase.
left if productivity increases.
left if nominal wages increase.
right if government spending increases.
35.
An expansionary fiscal policy either _____ government spending
or _____ taxes.
decreases; increases
decreases; decreases
increases; decreases
increases; increases
12.
The short run in macroeconomic analysis is a period:
in which many production costs can be taken as fixed.
in which interest rates are fixed.
of two months, and the...
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...
5) If consumption increases by $200 and, in response, equilibrium aggregate expenditure increases by $600, the multiplier is A) 5 B) 0.5.C)2. D) 0.3. 6) When the GDP in Kuwait rises relative to the GDP in other countries, will fall and will fall A) exports; imports B) exports; net exports C) imports; net exports D) net exports; imports 7) An increase in the price level will A) shift the aggregate demand curve to the left. B) shift the aggregate demand...
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