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. |
Homework Answers
Answer
Option D
an increase in the aggregate price level but no change in the aggregate output level
the increase in AD shifts the AD curve to right but the LRAS curve is vertically sloped at the long-run output level so the output does not change but the price level increases as the curve cut P above the old price level
Add Answer to:
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, 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...
A vertical long-run aggregate supply curve indicates that an increase in the price level will not...
A vertical long-run aggregate supply curve indicates that an increase in the price level will not expand an economy's output capacity in the long run. outputs greater than the long-run supply constraint cannot be achieved. an increase in the price level will permit the economy to achieve a higher level of output. an increase in the price level will promote technological change and more rapid economic growth.
If the price level decreases, then aggregate demand increase along the AD curve but the curve doesn’t shift. a. True b....
If the price level decreases, then aggregate demand increase along the AD curve but the curve doesn’t shift. a. True b. False The Long-run Aggregate Supply Curve (LRAS) can shift to the right because of: a. Discovery of more natural resources b. Development of more efficient technology c. Inviting more labor force through Immigration d. All of the above Which of the following may happen due to a crash in the stock market: a. AD curve may shift to the...
The long-run aggregate supply curve shows that by itself a permanent change in aggregate demand would lead to a long-run...
The long-run aggregate supply curve shows that by itself a permanent change in aggregate demand would lead to a long-run change a. in the price level and output. b. in the price level, but not output. c. in output, but not the price level. d. in neither the price level nor output
Using aggregate demand (AD), short-run aggregate supply (SRAS) and long-run aggregate supply (LRAS) curves
Question 1: AD-SRAS-LRAS Model Using aggregate demand (AD), short-run aggregate supply (SRAS) and long-run aggregate supply (LRAS) curves, graphically illustrate the effect of an increase in the money supply on output and prices in the short and long run. Assume that the economy is initially in long run equilibrium at the potential output level and prices are fixed in the short-run. In your graph, label "A" for the initial equilibrium, "B' for the short-run equilibrium, and "C" for the long-run equilibrium.
The following graph shows the short-run aggregate supply curve (AS), the aggregate demand curve (AD), and the long-run aggregate supply curve (LRAS) for a hypothetical economy
9. Economic fluctuations II The following graph shows the short-run aggregate supply curve (AS), the aggregate demand curve (AD), and the long-run aggregate supply curve (LRAS) for a hypothetical economy. Initially, the expected price level is equal to the actual price level, and the economy is in long-run equilibrium at its natural level of output, $120 billion. Suppose a bout of severe weather drives up agricultural costs, increases the costs of transporting goods and services, and increases the costs of producing goods...
Update the graph below to show an increase in short run aggregate supply and show what...
Update the graph below to show an increase in short run aggregate supply and show what effect this increase in increase short run aggregate supply will have on price levels and real GDP. 1. Price level SRAS AD Real GDF 2. Assume that a recessionary gap currently exists. If long-run supply (aka, potential output) increases and there is no change to aggregate demand or short run aggregate supply what happens to real GDP and to the recessionary gap?
I. The economy of Zarland is operating below the full-employment level of output with a balanced budget. (a) Draw a correctly labeled graph of short-run aggregate supply, long-run aggregate supply, a...
I. The economy of Zarland is operating below the full-employment level of output with a balanced budget. (a) Draw a correctly labeled graph of short-run aggregate supply, long-run aggregate supply, and aggregate demand, and show each of the following. (Gi) The country's current equilibrium output and price level, labeled Yj and PL1. respectively (ii) The full-employment output, labeled Yf (b) Ir Zarland increases government expenditures and taxes by equal amounts, can aggregate demand increase? Explain. (c) If Zarland decides to...
Which of the following will increase both the short-run and long-run aggregate supply curves? A. There...
Which of the following will increase both the short-run and long-run aggregate supply curves? A. There are fewer firms involved in perfectly competitive and monopolistically competitive market structures as the economy features more oligopolies than before. B. The wage rate temporarily decreases throughout the economy. C. Younger workers in the labour force receive better and more training than their predecessors. D. The supply of key raw materials, such as petroleum and bauxite, is reduced. Which of the following is true...
Using the aggregate demand (AD), the short-run aggregate supply (SRAS), and the long-run aggregate supply (LRAS)...
Using the aggregate demand (AD), the short-run aggregate supply (SRAS), and the long-run aggregate supply (LRAS) curves, briefly explain how an open market purchase will affect the equilibrium price level (P) and real output (Y) in the short run. Assume the economy is initially in a recession?
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...
Update the graph below to show an increase in short run aggregate supply and show what effect this increase in increase short run aggregate supply will have on price levels and real GDP. 1. Price level SRAS AD Real GDF 2. Assume that a recessionary gap currently exists. If long-run supply (aka, potential output) increases and there is no change to aggregate demand or short run aggregate supply what happens to real GDP and to the recessionary gap?
I. The economy of Zarland is operating below the full-employment level of output with a balanced budget. (a) Draw a correctly labeled graph of short-run aggregate supply, long-run aggregate supply, and aggregate demand, and show each of the following. (Gi) The country's current equilibrium output and price level, labeled Yj and PL1. respectively (ii) The full-employment output, labeled Yf (b) Ir Zarland increases government expenditures and taxes by equal amounts, can aggregate demand increase? Explain. (c) If Zarland decides to...
Most questions answered within 3 hours.
-
Paired research designs, also sometimes referred to as repeated
measures designs, are associated with some common...
asked 1 minute from now -
You working as a clinical engineer dealing with
autoclaves, xrays and life care machines, in what...
asked 1 minute ago -
Explain in detail (not just enumerate) each of Koch’s
postulates to determine the etiology of a...
asked 13 minutes ago -
Assume ABC Company has asked you to not only prepare their 2017
year-end Balance Sheet but...
asked 11 minutes ago -
You have just had a new set of tires put on your car, and now
the...
asked 16 minutes ago -
Please answer ASAP 2) Choose a point at random from the unit
square [0, 1] ×...
asked 31 minutes ago -
Draw the Lewis structures and determine which of these
molecules has a central atom that unavoidably...
asked 31 minutes ago -
Do we typically carry antibodies against the RH antigen in our
blood plasma?
asked 34 minutes ago -
What are the differences between an antibiotic, a semisynthetic,
and a synthetic as types of antimicrobials?
asked 30 minutes ago -
One mole of oxygen gas is at a pressure of 5.90 atm and a
temperature of...
asked 37 minutes ago -
The primary side of a transformer has 935 turns and is connected
to 118 Volts A/C....
asked 36 minutes ago -
This must be done in Java and it must contain a public static
void (string []args)...
asked 39 minutes ago