What would happen to the price level and real GDP if new, large reserves of petroleum...
What would happen to the price level and real GDP if new, large reserves of petroleum and natural gas were found off the coast of South Carolina? [Begin by drawing the AD and SAS curves on a graph] Select one: a. The price level and real GDP will both increase b. The price level and real GDP will both decrease c. The price level will increase, but real GDP will decrease d. The price level will decrease, but real GDP will increase e. The price level would increase, but real GDP would remain constant
Homework Answers
Ans) the correct option is d. The price level will decrease, but real GDP will increase
When new, large reserves of petroleum and natural gas are found then there would be more supply meaning SAS will increase and shifts to the right whereas AD remains the same. This will decrease price and increase output
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What would happen to the price level and real GDP if new, large
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What is most likely to happen to the price level and real GDP if the Fed...
What is most likely to happen to the price level and real GDP if the Fed targets a lower Federal Funds Rate? Select one: a. Price level and real GDP will both increase b. Price level and real GDP will both decrease c. Price level will increase, but real GDP will decrease d. Price level will decrease, but real GDP will increase e. Real GDP will increase, but the price level would remain the same
What is most likely to happen to the price level and real GDP if the Fed...
What is most likely to happen to the price level and real GDP if the Fed raises the Required Reserves Ratio from 10% to 15%. Select one: a. Price level and real GDP will both increase b. Price level and real GDP will both decrease c. Price level will increase, but real GDP will decrease d. Price level will decrease, but real GDP will increase e. Monetary policies have no effect on the economy
What would cause the BOTH the price level to decrease and real GDP to decrease? O...
What would cause the BOTH the price level to decrease and real GDP to decrease? O a shift to the left of the AD curve a shift to the right of the SRAS curve a shift to the left of the SRAS curve a shift to the right of the AD curve Question 6 (2 points) When there is an increase in aggregate demand along a stationary upward sloping short run in the short run. and aggregate supply curve, the...
Suppose the current level of real GDP for an economy is below its potential level of...
Suppose the current level of real GDP for an economy is below its potential level of RGDP. Starting with this situation, and in the absence of any government action, what should next happen in the AD-AS model? Group of answer choices A. A decrease in the Long-Run Aggregate Supply B. An increase in Aggregate Demand C. A decrease in Aggregate Demand D. An increase in the Short-Run Aggregate Supply E. An increase in the Long-Run Aggregate Supply F. A decrease...
LAS Real GDP LAS Price level Real GDP 39. Refer to the figure above to answer...
LAS Real GDP LAS Price level Real GDP 39. Refer to the figure above to answer this question. According to neoclassicists, which of the following is true? A) The horizontal axes of both graphs A and B show nominal GDP. It is not possible for an economy to be at Y2 in graph B. C) The shift from AD3 to AD4 is caused by an increase in the price level Graph A illustrates that changes in aggregate demand have no...
1. Explain what will happen to the price level real GDP and the unemployment rate in...
1. Explain what will happen to the price level real GDP and the unemployment rate in the following cases: a. AD falls by the same amount that SRAS rises b. AD falls by less than SRAS rises c. AD falls by more than SRAS falls d. AD falls by the same amount that SRAS falls e. AD falls by less than SRAS falls 2. Explain how expectations about future sales will affect investment. 3. How will a change in the...
L in in the following table shows what the situation will be in 2015 if the Price Level (CP) GDP ...
l in in the following table shows what the situation will be in 2015 if the Price Level (CP) GDP Real GDP Price Level 2014 $1.55 trillion $1.55 trilion 2015 $1.61 trillion $1.55 trillion 124 Draw an aggregate demand and aggregate supply graph to illustrate the effects of Parliament's policy Assume that policy does not affect LRAS 1.) Use the line drawing tool to draw the LRAS curves for 2014 and 2015. Respectively label these curves LRAS2014 and 'LRAS2015 2.)...
Thank You! QUESTION 30 Aggregate price level x Real GDP in the price level and a...
Thank You!
QUESTION 30 Aggregate price level x Real GDP in the price level and a decrease in the In the Aggregate Demand and Supply model (shown), an increase in nominal wages would cause an increase equilibrium level or real GDP in the short run. QUESTION 31 Aggregate price level Real GDP In the Aggregate Demand and Supply model (shown), if the government's budget deficit increases as a result of a tax cut with no cuts in spending, the result...
The government spends trillions of dollars to stimulate the economy and at the same time they...
The government spends trillions of dollars to stimulate the economy and at the same time they significantly raise minimum wage. What would happen to the price level and real GDP as a result? Select one: a. The price level will rise, but real GDP can increase, decrease or remain the same b. The price level will decrease, but real GDP can increase, decrease or remain the same c. Real GDP will rise, but the price level can increase, decrease or...
1. An increase in short-run aggregate supply means ________. A) the real GDP would decrease and...
1. An increase in short-run aggregate supply means ________. A) the real GDP would decrease and the price level would rise B) both the real GDP and the price level would decrease C) the real GDP would increase and rises in the price level would become smaller D) both the real GDP and rises in the price level would become greater 2. Assume that there is a 25% reserve requirement and that the Federal Reserve buys $4 billion worth of...
What would cause the BOTH the price level to decrease and real GDP to decrease? O a shift to the left of the AD curve a shift to the right of the SRAS curve a shift to the left of the SRAS curve a shift to the right of the AD curve Question 6 (2 points) When there is an increase in aggregate demand along a stationary upward sloping short run in the short run. and aggregate supply curve, the...
LAS Real GDP LAS Price level Real GDP 39. Refer to the figure above to answer this question. According to neoclassicists, which of the following is true? A) The horizontal axes of both graphs A and B show nominal GDP. It is not possible for an economy to be at Y2 in graph B. C) The shift from AD3 to AD4 is caused by an increase in the price level Graph A illustrates that changes in aggregate demand have no...
l in in the following table shows what the situation will be in 2015 if the Price Level (CP) GDP Real GDP Price Level 2014 $1.55 trillion $1.55 trilion 2015 $1.61 trillion $1.55 trillion 124 Draw an aggregate demand and aggregate supply graph to illustrate the effects of Parliament's policy Assume that policy does not affect LRAS 1.) Use the line drawing tool to draw the LRAS curves for 2014 and 2015. Respectively label these curves LRAS2014 and 'LRAS2015 2.)...
Thank You!
QUESTION 30 Aggregate price level x Real GDP in the price level and a decrease in the In the Aggregate Demand and Supply model (shown), an increase in nominal wages would cause an increase equilibrium level or real GDP in the short run. QUESTION 31 Aggregate price level Real GDP In the Aggregate Demand and Supply model (shown), if the government's budget deficit increases as a result of a tax cut with no cuts in spending, the result...
The government spends trillions of dollars to stimulate the economy and at the same time they significantly raise minimum wage. What would happen to the price level and real GDP as a result? Select one: a. The price level will rise, but real GDP can increase, decrease or remain the same b. The price level will decrease, but real GDP can increase, decrease or remain the same c. Real GDP will rise, but the price level can increase, decrease or...
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