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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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.
Figure 17.png » Q Price Level LRAS SRAS, SRAS, AD1 load AD2 Real GDP Refer to Figure 17. If the economy starts at A, a lower real interest te moves the economy from A to: B in the short run and the long run. B in the short run and C in the long run. B in the short run and A in the long run. D in the short run and A in the long run. •D in the short run and C in the long run.
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.
If the price level and the money wage rate rise by the same percentage, what happens to the quantity of real GDP supplied? How does the economy move? If the price level and the money wage rate rise by the same percentage, the quantity of real GDP supplied _______ and there is a movement up along the _______. A. does not change; potential GDP line B. increases; aggregate supply curve C. decreases; potential GDP line D. does not change; aggregate supply curve Thanks!