7. Draw the long-run aggregate supply curve when potentialGDP is $17.5 trillion. Label it.As we move up along the long-run aggregate supply curve,A. the prices of goods and services increase and the moOB. the money wage rate remains constantC. the real wage rate remains constantOD. the prices of goods and services remain constant135-125-115-105-95-85-75-Price level (GDP deflator, 2009=100)17.0 17.5 18.0 18.5 19.0 19.5Real GDP (trillions of 2009 dollars)>>> Draw only the objects specified in the question.16.5

Potential GDP is a theoretical measure of an economy's maximum production capacity, assuming full…

7. Draw the long-run aggregate supply curve when potential GDP is $17.5 trillion. Label it. As we move up along the long-run aggregate supply curve, A. the prices of goods and services increase and the mo OB. the money wage rate remains constant OC. the real wage rate remains constant D. the prices of goods and services remain constant 135- 125- 115- 105- 95- 85- Price level (GDP deflator, 2009=100) 75- 16.5 17.0 17.5 18.0 18.5 19.0 Real GDP (trillions of 2009 dollars) >>> Draw only the objects specified in the question. 19.5

7. Draw the long-run aggregate supply curve when potential GDP is $17.5 trillion. Label it. As we move up along the long-run aggregate supply curve, A. the prices of goods and services increase and the mo OB. the money wage rate remains constant OC. the real wage rate remains constant D. the prices of goods and services remain constant 135- 125- 115- 105- 95- 85- Price level (GDP deflator, 2009=100) 75- 16.5 17.0 17.5 18.0 18.5 19.0 Real GDP (trillions of 2009 dollars) >>> Draw only the objects specified in the question. 19.5

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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onvince his colleague Bilal that the 24. Firas a university student, trying to Maximum capacity output Net exports O Full employment range of output the five regions of the aggregate Unemployment supply curve diagram? O he ed hifts o ore spending. 23. Which of the following is not one of
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Note:- Please give all possible answer for both question options are given below. 8. Using policy to stabilize the economy The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply. The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates. The current tax system acts as an automatic stabilizer. Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses. Businesses make investment plans for many months in advance. Which of the following are examples of automatic stabilizers? Check all that apply. Corporate income taxes The discount rate Personal income taxes
PRICE LEVEL a a" a" LRAS Y, Y₂ QUANTITY OF OUTPUT 8 a. rising price level and a falling level of output, as the economy moves to point A. b. falling price level and a falling level of output, as the economy moves to point C. c. falling price level and a rising level of output, as the economy moves to point A O d. rising price level and a rising level of output, as the economy moves to point C. SRAS, SRAS Refer to Figure 34-3. Starting from point B and assuming that aggregate demand is held constant, in the long run the economy is likely to experience a AD
Figure 34-3 PRICE LEVEL a a a LRAS Y, Y₂ QUANTITY OF OUTPUT SRAS. SRAS. AD Refer to Figure 34-3. Starting from point B and assuming that aggregate demand is held constant, in the long run the economy is likely to experience a falling price level and a falling level of output, as the economy moves to point C. falling price level and a rising level of output, as the economy moves to point A. rising price level and a falling level of output, as the economy moves to point A. Orising price level and a rising level of output, as the economy moves to point C.
Figure 6 PRICE LEVEL LRAS Y, Y₂ QUANTITY OF OUTPUT SRAS; SRAS, AD 15. Refer to Figure 6. Starting from point A and assuming that aggregate demand is held constant, in the long run the economy is likely to experience a a. falling price level and a falling level of output, as the economy moves to point C. b. rising price level and a falling level of output, as the economy moves to point B. c. falling price level and a rising level of output, as the economy moves to point B. d. rising price level and a rising level of output, as the economy moves to point C.
Aggregate demand is the demand for the, of a country O a. Gross Domestic Product O b. Employment O C. Price level O d. None е. Firms
explain please
2. The model of aggregate demand and supply represents O A. the relationship between the real Gross Domestic Product and the overall price level O B. the changes in Gross Domestic Product over time O C. the relationship between the inflation and unemployment rates O D. the changes in the price level over time
12. If _____ is rising, it likely means that the economy is shrinking. A. consumer spending B. nominal GDP C. the Consumer Price Index D. the unemployment rate
Aggregate Supply and Aggregate Demand Real GDP Supplied Price $ 250 $ 500 $ 750 $1000 1500 3000 4500 4500 Real GDP Demanded 5500 5000 4500 4000 a. Plot the aggregate supply and aggregate demand curves on the same graph. b. State the equilibrium real GDP and price level. c. At the equilibrium GDP from part b, is the economy experiencing a recessionar gap? Explain why it is or is not experiencing a recessionary gap. d. State what happens to the nominal wages and the real wage in the short run phase of the aggregate supply.