Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter 20, Problem 14SQ
To determine
The indication of the shift in the aggregate demand curve.
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Exhibit 16.7
Price
level
26
22
16
10
6
Potential Output
a
T
G
SRAS
bike 2
AD"
Real GDP
0
80
Y*
200
140
Refer to Exhibit 16.7, which reflects the relationship between the inflation rate and the unemployment rate. If the economy is initially at point c
and aggregate demand increases, in the long run, the economy will
O a. stay at point c.
O b. move toward point a.
O c. move toward point b.
O d. move toward point d.
Oe. move toward point f.
A
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bike 2.jpg
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ENG
-
%
AD*
Y
&
N
➡+
00
8
에
O
► 11
f11
Price Level
S
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FIGURE 6-2
D
S
Domestic Product
17. In Figure 6-2, if the aggregate demand curve shifts inward over time, the economy will
a. experience inflation.
b. see a sustained increase in the price level.
c. experience a significant decrease in unemployment.
d. experience economic recession.
A falling price level is called as
a.
disinflation.
b.
deflation.
c.
a contraction.
d.
an inverted inflation.
Chapter 20 Solutions
Economics For Today
Ch. 20.7 - Prob. 1YTECh. 20.A - Prob. 1SQPCh. 20.A - Prob. 2SQPCh. 20.A - Prob. 3SQPCh. 20.A - Prob. 4SQPCh. 20.A - Prob. 5SQPCh. 20.A - Prob. 6SQPCh. 20.A - Prob. 1SQCh. 20.A - Prob. 2SQCh. 20.A - Prob. 3SQ
Ch. 20.A - Prob. 4SQCh. 20.A - Prob. 5SQCh. 20.A - Prob. 6SQCh. 20.A - Prob. 7SQCh. 20.A - Prob. 8SQCh. 20.A - Prob. 9SQCh. 20.A - Prob. 10SQCh. 20.A - Prob. 11SQCh. 20.A - Prob. 12SQCh. 20.A - Prob. 13SQCh. 20.A - Prob. 14SQCh. 20.A - Prob. 15SQCh. 20.A - Prob. 16SQCh. 20.A - Prob. 17SQCh. 20.A - Prob. 18SQCh. 20.A - Prob. 19SQCh. 20.A - Prob. 20SQCh. 20 - Prob. 1SQPCh. 20 - Prob. 2SQPCh. 20 - Prob. 3SQPCh. 20 - Prob. 4SQPCh. 20 - Prob. 5SQPCh. 20 - Prob. 6SQPCh. 20 - Prob. 7SQPCh. 20 - Prob. 8SQPCh. 20 - Prob. 9SQPCh. 20 - Prob. 10SQPCh. 20 - Prob. 11SQPCh. 20 - Prob. 1SQCh. 20 - Prob. 2SQCh. 20 - Prob. 3SQCh. 20 - Prob. 4SQCh. 20 - Prob. 5SQCh. 20 - Prob. 6SQCh. 20 - Prob. 7SQCh. 20 - Prob. 8SQCh. 20 - Prob. 9SQCh. 20 - Prob. 10SQCh. 20 - Prob. 11SQCh. 20 - Prob. 12SQCh. 20 - Prob. 13SQCh. 20 - Prob. 14SQCh. 20 - Prob. 15SQCh. 20 - Prob. 16SQCh. 20 - Prob. 17SQCh. 20 - Prob. 18SQCh. 20 - Prob. 19SQCh. 20 - Prob. 20SQ
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Similar questions
- Price Level AS AD Yu YY Real National Income 4. Referring to the above diagram, which of the following is a true statement? A. Macroeconomic policy will be needed to address rising inflation. B. There is sufficient aggregate demand to cause inflationary pressures. C. The equilibrium in the economy is at a level of output above full employment. D. There is insufficient aggregate demand to reach full employment.arrow_forwardIf there is persistent inflation Select one: a. long-run aggregate supply is constant. b. there is an excess of total planned expenditures. c. long-run aggregate supply is growing at a slower rate than aggregate demand. d. long-run aggregate supply is growing at a faster rate than aggregate demand.arrow_forwardA decrease in the nominal wage will cause the aggregate supply curve to a. become steeper. . b. shift inward. c. shift outward. . d. become flatterarrow_forward
- Which of the following leads to a rightward shift in the aggregate demand? a. General price level fall b. Rise in government spending c. General price level rise d. Fall in government spendingarrow_forwardIn an economy there is a 15.2 % fall in the consumer spending on the same basket of goods and services between the years 2015 and 2016. This means that there is ____. a. Inflation b. Deflation c. No change in price level d. Rise in Price levelarrow_forwardWhich of the following is most commonly used to monitor short-run changes in economic activity?a. the inflation rateb. real GDPc. aggregate demandd. aggregate supplyarrow_forward
- If aggregate demand shifts left, then in the short run a. the price level and real GDP both rise. b. the price and real GDP both fall. c. the price level falls and real GDP rises. d. the price level rises and real GDP falls.arrow_forwardAssuming aggregate demand remains constant, supply shocks that cause a leftward shift in the aggregate supply curve will------. Select one: a. decrease prices b. increase real output c. decrease the rate of unemployment d. increase both prices and the rate of unemploymentarrow_forwardWhich is the correct order once the AD or SRAS has shifted to start the inflation process? a. Prices increase in the shortage markets. b. Shortages develop in some markets. c. Prices throughout the economy rise. arrow_forward
- Please fully explain The short-run aggregate supply curve shows how ________ cause output to rise. Answer A. increases in inflation B. decreases in unemployment C. decreases in nominal interest rates D. All of these E. None of thesearrow_forwardInitially, demand - pull inflation will OA. increase the price level and increase real GDP. B. shift the aggregate supply curve rightward. C. increase the price level and decrease real GDP. D. increase the price level and not change real GDP.arrow_forwardDemand-pull inflation arises due to Part 2 A. a higher price level. B. a decrease in the short-run aggregate supply. C. a depreciation of the US$. D. a decrease in the aggregate demand. Part 3 Which of the following would create demand-pull inflation? Part 4 A. An increase in household income. B. A decrease in wages paid to workers. C. Increased international trade barriers. D. An increase in the real rate of interest.arrow_forward
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