A vertical long-run aggregate supply curve shows that: (a) wages and prices are sticky. (b) changes in technology do not affect the productive capacity of the economy. (c) the availability of resources does not affect the productive capacity of the economy. (d) changes in the price level do not affect the full employment productive capacity of the  economy

The aggregate production curve is a 45 degree line. [True or False] – Explain Why

(21) Assume that the economy begins in long run equilibrium and the central bank increases the target interest rate. In the long run, what happens to the level of GDP? Group of answer choices (A) It goes down (B) It goes up (C) It stays the same

Multiple answer please check all applying sir thank you?

43. Which of the following variables does NOT cause business cycles, according to classical economics? (A) Technological growth. (B) Immigration. (C) Capital accumulation. (D) Money supply. 44. Suppose that there is a sudden fall in consumption. What happens to the economy in the long-run? (A) A fall in output and a fall in prices. (B) A rise in prices. (C) A rise in output. (D) A fall in prices but not in output.

(b) Assume that household income increases as a result of recent economic prosperity in Country X. On your graph in part (a), show the effect of the increase in household income on real output and the price level.

Economic growth would be represented inExhibit A-10 by a(an)a. leftward shift in the long-run aggregate supply curve (LRAS).b. inward shift of the production possibilities curve.c. rightward shift in the long-run aggregate supply curve (LRAS).d. movement along the long-run aggregate supply curve (LRAS).

Use an aggregate demand (AD) and aggregate supply (AS) model to respond to the following questions. Explain your answers.(c) Describe a government policy that is likely to cause non-inflationary and sustained growth. (d) Good weather creates a bumper crop in Saskatchewan. How does this affect inflation and GDP in the short-run?

(20) Assume that the economy begins in long run equilibrium and the central bank increases the target interest rate. In the long run, what happens to the price level? Group of answer choices (A) It goes down (B) It stays the same (C) It goes up

recessions have occurred roughly once every six years since the 1960s. the unemployment rate usually decreases during a recession and increases shortly after the recession ends. real GDP usually remains roughly constant during a recession and decreases shortly after the recession ends. changes in real GDP over the business cycle are largely attributable to changes in investment over the business cycle.   Question 2 Which of the following is most commonly used to monitor short-run changes in economic activity? Answer the inflation rate real GDP aggregate demand aggregate supply   Question 3 During recessions investment Answer falls by a larger percentage than GDP. falls by about the same percentage as GDP. falls by a smaller percentage than GDP. falls but the percentage change is sometimes much larger and sometimes much smaller   Question 4 The classical model is appropriate for analysis of the economy in the Answer long run, since evidence indicates that money is not neutral in the…