The following is an example of an aggregate demand shock with a negative effect on a distributor: A) a recession B) a re...
The following is an example of an aggregate demand shock with a negative effect on a distributor:
A) a recession
B) a recession in a major trading partner
C) a significant tax increase on business
D) all the above
Homework Answers
"D"
All of the given options are a negative effect on a distributor as this will decrease the demand and they will be stuck with a increasing inventory.
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The following is an example of an aggregate demand shock with a negative effect on a distributor: A) a recession B) a re...
1. What effects would each of the following have on aggregate demand or aggregate supply (other...
1. What effects would each of the following have on aggregate demand or aggregate supply (other things held constant)? Explain them to score high marks. a. The Canadian dollar loses its value and gets weaker by 3% against the US dollar. Ans: b. A $2 increase in the excise tax (production) on a pack of cigarettes. Ans: c. A reduction in interest rates at each price level. Ans: I d. COVID-19 reduces the demand for oil and thus oil prices...
An increase in aggregate demand (AD) can cause
Question 6 An increase in aggregate demand (AD) can cause an increase in cyclical unemployment. a recession in the economy. an expansion in the economy. Question 9 Which of the following would cause a negative demand shock (shift to the left) in aggregate demand? decreased availability of business capital increased government spending production costs falling Question 10For aggregate demand and aggregate supply to be an economic model, the equilibrium aggregate price level and equilibrium aggregate real GDP should only consider long run curves. be considered in individual markets. intersect.
Facing a negative aggregate demand shock, the central bank of Guatemala has chosen to increase the...
Facing a negative aggregate demand shock, the central bank of Guatemala has chosen to increase the money supply. In the RBC model we might expect?
A supply shock causes a shift in: a. long-run aggregate supply. b. aggregate demand. c. short-run and long-run aggregat...
A supply shock causes a shift in:
a. long-run aggregate supply.
b. aggregate demand.
c. short-run and long-run aggregate supply.
d. short-run aggregate supply.
e. aggregate demand and short-run aggregate supply.
Consider the exhibit below for the following questions.
Figure 20-1
Refer to Figure 20-1. The economy would be moving to long-run
equilibrium if it started at
a. A and moved to B.
b. C and moved to B.
c. D and moved to C.
d. None of the above...
1.) In the Keynesian framework, which of the following events might cause a recession? Which might...
1.) In the Keynesian framework, which of the following events might cause a recession? Which might cause inflation? Sketch AD/AS diagrams to illustrate your answers. a.) A large increase in the price of the homes people own. b.) Rapid growth in the economy of a major trading partner. c.) The development of a major new technology offers profitable opportunities for business. d.) The interest rate rises. e.) The good imported from a major trading partner become much less expensive. 2.)...
If the Fed's policies aim to increase aggregate demand, the Fed must fear A. a supply...
If the Fed's policies aim to increase aggregate demand, the Fed must fear A. a supply shock that increases aggregate supply. B. a supply shock that decreases potential GDP. C. stagflation. D. recession. E. inflation.
If the economy begins at long-run equilibrium at potential output when a negative aggregate demand shock...
If the economy begins at long-run equilibrium at potential output when a negative aggregate demand shock occurs,l initially there will be a ____________________ equilibrium because prices are _____________ in the short run. a. new long-run equilibrium below potential output, sticky b. new short-run equilibrium below potential output, sticky c. new short-run equilibrium above potential output, sticky d. new short-run equilibrium below potential output, flexible
During a recession consumption falls, causing the aggregate demand curve to shift to the ________. In...
During a recession consumption falls, causing the aggregate demand curve to shift to the ________. In response, the government can increase government spending to shift the ________. a. left; aggregate demand (AD) curve to the right b. left; short-run aggregate supply (SRAS) curve to the right c. right; aggregate demand (AD) curve to the left d. right; short-run aggregate supply (SRAS) curve to the right e. left; long-run aggregate supply (LRAS) curve to the right
Which of the following shifts aggregate demand to the left?
Which of the following shifts aggregate demand to the left? a. Interest rates fall. b. Stock prices fall for some reason other than a change in the price level. c. The dollar depreciates for some reason other than a change in the price level. d. The price level rises. Which of the following shifts aggregate demand right? a. both a decrease in the price level and the implementation of an investment tax credit b. a decrease in the price level but not the implementation of an investment...
1. Which of the following is not a property of the aggregate demand curve? It shows...
1. Which of the following is not a property of the aggregate demand curve? It shows the relationship between the overall price level and level consumption. It shows the price level on the vertical axis and output on the horizontal axis. The aggregate demand curve slopes downward. It shows the relationship between the overall price level and the level of total demand. 2. When the price level increases people: feel more wealthy. have the same real value of assets, regardless...
1. What effects would each of the following have on aggregate demand or aggregate supply (other things held constant)? Explain them to score high marks. a. The Canadian dollar loses its value and gets weaker by 3% against the US dollar. Ans: b. A $2 increase in the excise tax (production) on a pack of cigarettes. Ans: c. A reduction in interest rates at each price level. Ans: I d. COVID-19 reduces the demand for oil and thus oil prices...
A supply shock causes a shift in:
a. long-run aggregate supply.
b. aggregate demand.
c. short-run and long-run aggregate supply.
d. short-run aggregate supply.
e. aggregate demand and short-run aggregate supply.
Consider the exhibit below for the following questions.
Figure 20-1
Refer to Figure 20-1. The economy would be moving to long-run
equilibrium if it started at
a. A and moved to B.
b. C and moved to B.
c. D and moved to C.
d. None of the above...
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