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Figure:
AD–AS |
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Homework Answers
A reduction in fed's funds rate reduces the supply of money, increasing interest rate and reducing income.This causes a leftward shift in the aggregate demand curve.The AD will shift left to AD3
Answer-Option 3
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Figure: AD–AS Refer to Figure: AD–AS. Assume that the economy is in long-run equilibrium. If the...
If the aggregate demand in the economy depicted below is AD2, ceteris paribus, what is likely...
If the aggregate demand in the economy depicted below is AD2, ceteris paribus, what is likely to happen in this economy in the long run (without any government intervention)? Price level LRAS SRAS P3 AD3 AD1 2 AD2 2 Y Y Real GDP O The SRAS curve will shift to the right. Nominal wages will decrease. Nominal wages will increase. Both the nominal wages will decrease and the SRAS curve will shift to the right. O The SRAS curve will...
Suppose the economy is initially in long-run equilibrium. The Fed decides to increase the required reserve...
Suppose the economy is initially in long-run equilibrium. The Fed decides to increase the required reserve ratio. In the short-run, this contractionary monetary policy will cause: Price Level 1227 SRASZ 1204 LRAS 1184 116- 114- 1124 SRAS, 1104 O A. A shift from SRAS, to SRAS, and a movement to point B, with a lower price level and higher output. OB. A shift from AD, to AD, and a movement to point B, with a higher price level and higher...
(Figure: AD– AS Model II) Refer to Figure: AD– AS Model II. If the value of...
(Figure: AD– AS Model II) Refer to Figure:
AD– AS Model II. If the value of household wealth
increases, the _____ curve will shift to the _____.
A.
SRAS; right
B.
SRAS; left
C.
AD; left
D.
AD; right
Aggregate price level LRAS SRAS1 E1 P1 AD1 Y, = potential output Real GDP
The following figure depicts the aggregate demand (AD), theshort-run aggregate supply (SRAS), and the long-run...
The following figure depicts the aggregate demand (AD), the
short-run aggregate supply (SRAS), and the long-run aggregate
supply (LRAS) curves for an economy. The economy is initially at
long-run equilibrium, at point A. Suppose that there is an increase
in the amount of investment in the economy due to a reduction in
the real interest rate. This increase in investment shifts the AD
curve to the right, depicted below in the movement of the economy
from point A to point...
Figure AS-AD.1 AD2 AD1 AD3 Real Domestic Output, GDP 13) In Figure AS.AD.1, what combination would...
Figure AS-AD.1 AD2 AD1 AD3 Real Domestic Output, GDP 13) In Figure AS.AD.1, what combination would most likely cause a shift from ADI to AD2? A) A decrease in taxes and an increase in government purchases B) An increase in taxes and an increase in government purchases 14) Other things being equal, the effects of an increase in the price of orange juice would best be represented by a(n): A) upward movement along the demand curve for orange juice. B)...
Use the following figures to answer the next question.
Question 2 Use the following figures to answer the next question. A decline in aggregate expenditures from AEZ to AE, resulting from the real-balances, interest-rate, and foreign purchases effects would be depicted as a movement from A to C along aggregate demand curve AD1. movement from C to A along aggregate demand curve AD1.shift of aggregate demand from AD1 to AD3shift of aggregate demand from AD2 to AD1.Question 4 Use the following graph to answer the next question. If AD, shifts to AD2, the full multiplier...
The graph depicts a dynamic aggregate demand (AD) and aggregate supply (AS) model of the economy....
The graph depicts a dynamic aggregate demand (AD) and aggregate supply (AS) model of the economy. Suppose that in 2003, the economy is in macroeconomic equilibrium, with GDP at GDP (year 1). The Fed projects that in 2004, the aggregate demand curve will be AD (year 2), that potential real GDP will be $12.45 trillion (GDP (year 2), and that actual real GDP will be $12.39 trillion LRAS (year 1) LRAS (year 2) SRAS (ycar1) SRAS (year 2 ear Year...
QUESTION 39 Figure 34-8 AD AD AD. Refer to Figure 34-8. An increase in taxes will...
QUESTION 39 Figure 34-8 AD AD AD. Refer to Figure 34-8. An increase in taxes will o a. have no effect on aggregate demand O b. shit aggregate demand from ADI to AD3 O c. cause movement from point A to point B along ADI O d. shift aggregate demand from ADi to AD2.
The figure below depicts the aggregate demand curve (AD), the short-run aggregate supply curve (SRAS), and the long-run aggregate supply curve (LRAS) for the United States. The economy is initially at long-run equilibrium, at point A.
The figure below depicts the aggregate demand curve (AD), the short-run aggregate supply curve (SRAS), and the long-run aggregate supply curve (LRAS) for the United States. The economy is initially at long-run equilibrium, at point A.One of the most contentious issues among economists involves the economy’s adjustment to long-run equilibrium. Some economists believe that adjustment can and should occur naturally. This group, the classical economists, stress the importance of aggregate supply. Others see the return to long-run equilibrium as an...
The figure below depicts the aggregate demand curve (AD) and the long-run aggregate supply curve (LRAS) for the United States. The economy is initially at long-run equilibrium, at point A.
The figure below depicts the aggregate demand curve (AD) and the long-run aggregate supply curve (LRAS) for the United States. The economy is initially at long-run equilibrium, at point A.One of the most contentious issues among economists involves the economy’s adjustment to long-run equilibrium. Some economists believe that adjustment can and should occur naturally. This group, the classical economists, stresses the importance of aggregate supply. Others see the return to long-run equilibrium as an adjustment that occurs unpredictably and often...
If the aggregate demand in the economy depicted below is AD2, ceteris paribus, what is likely to happen in this economy in the long run (without any government intervention)? Price level LRAS SRAS P3 AD3 AD1 2 AD2 2 Y Y Real GDP O The SRAS curve will shift to the right. Nominal wages will decrease. Nominal wages will increase. Both the nominal wages will decrease and the SRAS curve will shift to the right. O The SRAS curve will...
Suppose the economy is initially in long-run equilibrium. The Fed decides to increase the required reserve ratio. In the short-run, this contractionary monetary policy will cause: Price Level 1227 SRASZ 1204 LRAS 1184 116- 114- 1124 SRAS, 1104 O A. A shift from SRAS, to SRAS, and a movement to point B, with a lower price level and higher output. OB. A shift from AD, to AD, and a movement to point B, with a higher price level and higher...
(Figure: AD– AS Model II) Refer to Figure:
AD– AS Model II. If the value of household wealth
increases, the _____ curve will shift to the _____.
A.
SRAS; right
B.
SRAS; left
C.
AD; left
D.
AD; right
Aggregate price level LRAS SRAS1 E1 P1 AD1 Y, = potential output Real GDP
The following figure depicts the aggregate demand (AD), the
short-run aggregate supply (SRAS), and the long-run aggregate
supply (LRAS) curves for an economy. The economy is initially at
long-run equilibrium, at point A. Suppose that there is an increase
in the amount of investment in the economy due to a reduction in
the real interest rate. This increase in investment shifts the AD
curve to the right, depicted below in the movement of the economy
from point A to point...
Figure AS-AD.1 AD2 AD1 AD3 Real Domestic Output, GDP 13) In Figure AS.AD.1, what combination would most likely cause a shift from ADI to AD2? A) A decrease in taxes and an increase in government purchases B) An increase in taxes and an increase in government purchases 14) Other things being equal, the effects of an increase in the price of orange juice would best be represented by a(n): A) upward movement along the demand curve for orange juice. B)...
The graph depicts a dynamic aggregate demand (AD) and aggregate supply (AS) model of the economy. Suppose that in 2003, the economy is in macroeconomic equilibrium, with GDP at GDP (year 1). The Fed projects that in 2004, the aggregate demand curve will be AD (year 2), that potential real GDP will be $12.45 trillion (GDP (year 2), and that actual real GDP will be $12.39 trillion LRAS (year 1) LRAS (year 2) SRAS (ycar1) SRAS (year 2 ear Year...
QUESTION 39 Figure 34-8 AD AD AD. Refer to Figure 34-8. An increase in taxes will o a. have no effect on aggregate demand O b. shit aggregate demand from ADI to AD3 O c. cause movement from point A to point B along ADI O d. shift aggregate demand from ADi to AD2.
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