effect of foreign economies fluctuations in oil prices war stimulates economy; peace leads to recession A. The external demand shock theory B. War theory C. The price shock theory
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- Countries like China and other developed economies are in the Neo dasmcal zone. What is the best option for these countries to sustain ther economies? a Increase aggregate supply b. Move back to Keynesian Zone c Move back to intermediate zone d. Decrease aggregate demandA change in which of the following would shift theshort-run aggregate-supply curve but not the longrun aggregate-supply curve?a. the labor forceb. the capital stockc. the state of technologyd. the expected price levelD Question 20 A temporary disruption of oil supplies to the United States caused by geopolitical events would have which of the most likely impacts? A short-run adverse supply shock A long-run adverse supply shock A long-run beneficial supply shock Both beneficial and adverse supply shocks A short-run beneficial supply shock
- Consider the orginal IS-curve. Suppose demand in the U.S. for imports from Japan increases. This leads to what? Select all the correct statements. (a) Lower short - run output in the U.S.. (b) A downward shift in the IS - curve in Japan. (c) A positive aggregate demand shock in Japan. (d) An upward shift in the IS - curve in the U.S.. (e) A movement along the IS-curve in Japan.Explain how each ofthe following shocks can impact the demand orsupply of oil:A. A worldwide economic recession.B. Improved oildrilling technology.C. War in a majoroil producing country.D. Greaterenvironmentalawareness about climate change.During the Great Depression, the U.S. aggregate demand curve shifted to the left, in part, because there was an increase in stock prices. Othere were advances in technology in manufacturing. the U.S. government decreased taxes. Othere was an increase in the U.S. population. O a large number of U.S. banks failed.
- What is the effect of a rise in the U.S. price level when the prices in other countries do not change? A. U.S. aggregate demand increases because U.S. exports increase and U.S. imports decrease. B. The quantity of U.S. real GDP demanded decreases because U.S. exports decrease and U.S. imports increase. C. U.S. aggregate demand decreases because U.S. exports decrease and U.S. imports increase. D. The quantity of U.S. real GDP demanded increases because U.S. exports increase and U.S. imports decrease.Show the effect this shock has on the market for almonds by shifting the demand curve, supply curve, or both. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per ton) 40 32 32 Supply Demand 24 24 16 8 0 8 16 24 Demand QUANTITY (Thousands of tons) 32 40 Supply One of the growers is pleased with the price increase caused by the pests because she believes it will lead to increased revenue. Using elasticities, you will be able to determine whether this price change will lead to a rise or fall in total revenue in this market. Using the midpoint method, the price elasticity of demand for almonds between the price levels of $20 and $28 per ton is between these two points, demand is . Thus, you can conclude that the grower's claim is due to the pestilence. meaning that because total revenue will Confirm your previous…Show the effect this shock has on the market for pistachios by shifting the demand curve, supply curve, or both. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. PRICE (Dollars per ton) 40 32 24 16 8 0 8 16 24 Demand QUANTITY (Thousands of tons) Supply 32 40 Demand -- Supply ?
- Explain whether each of the following events shifts the short-run aggregate-supply curve,the aggregate-demand curve, both, or neither. For each event that does shift a curve, use adiagram to illustrate the effect on the economy.d A significant amount of iron ore is found in Western Australia, capable of supplyingworld trade for the next 50 years.Explain why the following statements are false.a. “The aggregate-demand curve slopes downwardbecause it is the horizontal sum of the demandcurves for individual goods.”b. “The long-run aggregate-supply curve is verticalbecause economic forces do not affect long-runaggregate supply.”A temporary embargo on oil from Saudi Arabia going in to the United States would A. shift the long-run aggregate supply curve to the right. B. shift both the short-run and long-run aggregate supply curves to the left. C. shift only the short-run aggregate supply curve to the left. D. shift only the long-run aggregate supply curve to the left.
