true. or false? In the long run, the aggregate price level has no effect on the quantity of aggregate output supplied.
true. or false? In the long run, the aggregate price level has no effect on the quantity of aggregate output supplied.
Homework Answers
True.
- The aggregate supply curve shows the relationship between the aggregate price level and the quantity of aggregate output supplied.
- In long run, it is observed that the aggregate price level has no effect on the quantity of aggregate output supplied.
- This is because the short run fluctuations causes the aggregate output to keep fluctuating above or below the potential GDP. This prevents the long run fluctuations of aggregate output which does not fluctuate even when aggregate prices change.
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true. or false? In the long run, the aggregate price level has no effect on the quantity of aggregate output supplied.
True or False: Indicate whether the following questions are true or false and then EXPLAIN why. 1. An increase in price expectations shifts the long-run aggregate supply curve to the left. 2. All expl...
True or False: Indicate whether the following questions are true or false and then EXPLAIN why. 1. An increase in price expectations shifts the long-run aggregate supply curve to the left. 2. All explanations for the upward slope of the short-run aggregate supply curve suppose that the quantity of output supplied increases when the actual price level exceeds the price level that was expected. 3. One reason the Aggregate Demand curve slopes downward is the real wealth effect: a decrease...
The short-run aggregate supply curve has a positive slope, showing that increases in the price level...
The short-run aggregate supply curve has a positive slope, showing that increases in the price level will increase the quantity of aggregate output supplied by firms. False True
The short-run aggregate supply curve shows the short-run relationship between the A. price level and quantity...
The short-run aggregate supply curve shows the short-run relationship between the A. price level and quantity supplied in one market. B. price level and total demand in the entire economy. C. price level and the willingness of firms to supply output to the economy. D. consumption level and the price level. Evidence about the behavior of prices in the economy suggests that changes in aggregate demand have a relatively （Large or small） effect on prices within a few quarters so...
4. In the short-run, a decrease in the GDP deflator will a) Decrease aggregate quantity supplied...
4. In the short-run, a decrease in the GDP deflator will a) Decrease aggregate quantity supplied b) Have no effect on aggregate quantity supplied c) Decrease the aggregate quantity demanded 5. In the long-run, a decrease in the GDP deflator will: a) Decrease aggregate quantity supplied b) Have no effect on aggregate quantity supplied c) Decrease the aggregate quantity demanded 6. A decrease in the GDP deflator will: a) Increase aggregate quantity supplied b) Have no effect on aggregate quantity...
Long run aggregate supply is the relationship between the quantity of real GDP supplied and the...
Long run aggregate supply is the relationship between the quantity of real GDP supplied and the price level when the maintain full employment changes in step with the price level to O A. money wage rate OB. quantity of money OC. real wage rate OD. interest rate supplied and the when the money wage rate, the prices of other resources and Short run aggregate supply is the relationship between the quantity of potential GDP remain constant O A real GDP...
4. In the short-run, a decrease in the GDP deflator will a) Decrease aggregate quantity supplied b) Have no effec...
4. In the short-run, a decrease in the GDP deflator will a) Decrease aggregate quantity supplied b) Have no effect on aggregate quantity supplied c) Decrease the aggregate quantity demanded 5. In the long-run, a decrease in the GDP deflator will: a) Decrease aggregate quantity supplied b) Have no effect on aggregate quantity supplied c) Decrease the aggregate quantity demanded 6. A decrease in the GDP deflator will: a) Increase aggregate quantity supplied b) Have no effect on aggregate quantity...
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...
Why the aggregate supply curve slopes upward in the short run quantity of output that firms suppl...
Why the aggregate supply curve slopes upward in the short run quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy devi om the expected price level. Several theories explain how this might happen or example, the sticky-price theory asserts that the output prices of some goods and services adjust slowhy irms announce the prices for their products in advance, based on an expected price level of poods...
MIL ANUL Uu n o Waphically. Aggregate Quantity Price Level Demanded Aggregate Quantity Supplied 12. In...
MIL ANUL Uu n o Waphically. Aggregate Quantity Price Level Demanded Aggregate Quantity Supplied 12. In an economy with the following aggregate demand and aggregate supply schedules: a) Find the equilibrium levels of real output and the price level. b) Graph your solution. c) If full employment comes at $2,800 billion, is there an inflationary or a recessionary $3,200 $2,750 3,100 3,000 2,900 2,800 2,900 3,000 3,050 3,075 105 gap? 110
In the long run, an increase in AD will result in: A. no change in the aggregate price level. B. increases in...
In the long run, an increase in AD will result in: A. no change in the aggregate price level. B. increases in both the aggregate price level and the aggregate output level. C. increase in the aggregate output level. D. an increase in the aggregate price level but no change in the aggregate output level.
4. In the short-run, a decrease in the GDP deflator will a) Decrease aggregate quantity supplied b) Have no effect on aggregate quantity supplied c) Decrease the aggregate quantity demanded 5. In the long-run, a decrease in the GDP deflator will: a) Decrease aggregate quantity supplied b) Have no effect on aggregate quantity supplied c) Decrease the aggregate quantity demanded 6. A decrease in the GDP deflator will: a) Increase aggregate quantity supplied b) Have no effect on aggregate quantity...
Long run aggregate supply is the relationship between the quantity of real GDP supplied and the price level when the maintain full employment changes in step with the price level to O A. money wage rate OB. quantity of money OC. real wage rate OD. interest rate supplied and the when the money wage rate, the prices of other resources and Short run aggregate supply is the relationship between the quantity of potential GDP remain constant O A real GDP...
4. In the short-run, a decrease in the GDP deflator will a) Decrease aggregate quantity supplied b) Have no effect on aggregate quantity supplied c) Decrease the aggregate quantity demanded 5. In the long-run, a decrease in the GDP deflator will: a) Decrease aggregate quantity supplied b) Have no effect on aggregate quantity supplied c) Decrease the aggregate quantity demanded 6. A decrease in the GDP deflator will: a) Increase aggregate quantity supplied b) Have no effect on aggregate quantity...
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...
Why the aggregate supply curve slopes upward in the short run quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy devi om the expected price level. Several theories explain how this might happen or example, the sticky-price theory asserts that the output prices of some goods and services adjust slowhy irms announce the prices for their products in advance, based on an expected price level of poods...
MIL ANUL Uu n o Waphically. Aggregate Quantity Price Level Demanded Aggregate Quantity Supplied 12. In an economy with the following aggregate demand and aggregate supply schedules: a) Find the equilibrium levels of real output and the price level. b) Graph your solution. c) If full employment comes at $2,800 billion, is there an inflationary or a recessionary $3,200 $2,750 3,100 3,000 2,900 2,800 2,900 3,000 3,050 3,075 105 gap? 110
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