Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 8, Problem 17QP
To determine
Explain the change in price affect.
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Draw an aggregate demand and supply diagram for Japan. In the diagram, show how each of the following affects aggregate demand and supply.
a. The U.S. gross domestic product falls.
b. The level of prices in Korea falls.
c. Labor receives a large wage increase.
d. Economists predict higher prices next year.
Which of the following events increases aggregate supply?
A. A decrease in potential GDP
B. A rise in the price level
C. A fall in the money wage rate
D. A fall in the price level
Increases in the quality of inputs that do not affect the quantity of those inputs, increase
A. short - run aggregate supply but not long - run aggregate supply.
B. aggregate quantity supplied.
C. long - run aggregate supply but not short - run aggregate supply
D. both long - run aggregate supply and aggregate quantity supplied.
E. both long - run aggregate supply and short - run aggregate supply.
Chapter 8 Solutions
Economics (MindTap Course List)
Ch. 8.2 - Prob. 1STCh. 8.2 - Prob. 2STCh. 8.2 - The money supply has risen, but total spending has...Ch. 8.3 - Prob. 1STCh. 8.3 - Prob. 2STCh. 8.3 - Prob. 3STCh. 8.5 - Prob. 1STCh. 8.5 - Prob. 2STCh. 8 - Prob. 1QPCh. 8 - Prob. 2QP
Ch. 8 - Prob. 3QPCh. 8 - Prob. 4QPCh. 8 - Prob. 5QPCh. 8 - Prob. 6QPCh. 8 - Prob. 7QPCh. 8 - Prob. 8QPCh. 8 - Prob. 9QPCh. 8 - Prob. 10QPCh. 8 - Prob. 11QPCh. 8 - Prob. 12QPCh. 8 - Prob. 13QPCh. 8 - Prob. 14QPCh. 8 - Prob. 15QPCh. 8 - Prob. 16QPCh. 8 - Prob. 17QPCh. 8 - Prob. 18QPCh. 8 - Prob. 19QPCh. 8 - Prob. 20QPCh. 8 - Prob. 21QPCh. 8 - Prob. 1WNGCh. 8 - Prob. 2WNGCh. 8 - Prob. 3WNGCh. 8 - Prob. 4WNGCh. 8 - Prob. 5WNGCh. 8 - Prob. 6WNG
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Similar questions
- Adjust the graph to show the effect of a decrease in the aggregate price level. look at image Which of the statements offers the best explanation for the change demonstrated in the graph? a. Prices of goods and services decrease on average. b. Consumers purchase less of one product, like cars, and more of another, like clothing. c. The law of demand dictates the behavior of the aggregate demand curve. d. The prices of a few goods in the market dropped substantially.arrow_forwardIf the price level rises, what happens to aggregate supply? Aggregate supply _______. A. doesn't change, but the quantity of real GDP supplied increases B. decreases C. increases D. doesn't change, but the quantity of real GDP supplied decreasesarrow_forwardWhich of the following would cause the Aggregate Quantity Demanded to increase? a. An increase in the price level causing a decrease in the purchasing power of the consumers' wealth b. A decrease in the price level causing an increase in the market rate of interest c. An increase in the price level causing an increase in the purchasing power of the consumer's wealth d. A decrease in the price level causing a decrease in the market rate of interest e. None of the abovearrow_forward
- Which of the following is not a component of the aggregate demand curve?a.Government spending(G)b.Investment(I)c.Consumption(C)d.Net Exports(X-M)e.Savingarrow_forwardWhich of the following shifts aggregate supply to the right? a. a decline in the price of imported natural resources b. a technological advance c. an older labor force that leaves jobs less frequently d. All of the above are correct.arrow_forwardWhich of the following is not a component of the aggregate demand curve? a.Government spending(G) b. Investment (I) c. Consumption (C) d. net exports (X-M) e. Savingsarrow_forward
- The aggregate quantity demand of real GDP A. increases if the price level rises. B. decreases if the price level rises. C. does not change with prices. D. All of the choices above are correct.arrow_forward3. Currently, there is world-wide shortage of computer microchips.Determine the effects on: a. Supply of Toyota automobiles made in Ontario. b. Supply of peanuts grown in SouthwesternOntario. c. Demand for automobiles in Canada. d. GDP in Canada. e. Short-run aggregate demand and aggregate supply in Canada’s economy.arrow_forwardMultiple choice Question: The amount of real GDP that will be made available by sellers at various price levels. A. Aggregate Supply B. Aggregate Demand C. Equilibrium GDP D. Aggregate Sellersarrow_forward
- Assume that the United States is currently in a recession. a. Draw a correctly labelled graph of aggregate demand and aggregate supply showing each of the following in the United States: i. Output level ii. Price level Aarrow_forwardThe aggregate demand curve shows how real GDP purchased varies with changes in A. Unemployment B. Output C. The price level D. The interest ratearrow_forwardAn increase in consumer confidence in a country will result in a 1.shift of the aggregate demand curve to the right. 2.shift of the aggregate demand curve to the left. 3.movement up the aggregate demand curve to a lower aggregate output. 4.movement down the aggregate demand curve to a higher aggregate output.arrow_forward
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