An increase in short-run aggregate supply means A) the real GDP would increase and rises in the price level would become smaller OB) both the real GDP and rises in the price level would become greater OC) both the real GDP and the price level would decrease D) the real GDP would decrease and the price level would rise

Which of these are consequences of an increase in long-run aggregate supply? an increase in full-employment output an increase in the price level a decrease in the long-run rate of unemployment an increase in short-run aggregate supply

Aggregate demand and aggregate supply, based on a problem from “Principles of Economics” by N. Gregory Mankiw a) List the components of country’s GDP in an open economy. For each component, provide an example of an event that would cause a shift of the aggregate demand curve to the right.b) What will be the effect of such events on the level of prices and the real outcome in the short run? Provide a graph.c) What will be the effect of such events on the level of prices and the real outcome in the longrun? Update your graph

Changes in what four variables will shift the long run aggregate supply curve?

1)Potential output is the same as long-run aggregate supply. Select one: True False   2)An increase in the price level will cause a decrease in the aggregate amount of output supplied. Select one: True False

The following graph represents the short-run aggregate supply curve (SRAS) based on an expected price level of 120. The economy's full- employment output level is $9 trillion. Major unions across the country have recently negotiated three-year wage contracts with employers. The wage contracts are based on an expected price level of 120, but the actual price level turns out to be 160. Show the short-run effect of the unexpectedly high price level by dragging the curve or moving the point to the appropriate position. PRICE LEVEL (CPI) 240 200 160 40 0 0 3 SRAS[120] 6 9 12 REAL GDP (Trillions of dollars) 15 18 SRAS[120] 0 (?) Interpret the change you drew on the previous graph by filling in the blanks in the following paragraph:

The U.S. economy is initially in short-run macro-equilibrium.  Assume oil prices fall.  As a result, we observe the following in our economy   Question 2 options:   a)  Both the price level and real GDP decrease   b)  The price level falls and real GDP increases   c)  The price level increases and real GDP falls   d)  Both the price level and real GDP increase.

What effects would each of the following have on aggregate demand or       aggregate supply?  Justify your answer. In each case use a diagram to show the expected effects on the equilibrium price level and real output level in the economy.  Assume that all other things remain constant and prices are inflexible downward.  (a) A reduction in interest rates at each price level   (b) A sizable increase in labor productivity.   (c) The nation’s currency appreciates against its major trading partners  .

QUESTION 2 Explain whether each of the following events will increase, decrease or have no effect on long-run aggregate supply. a) Malaysia experiences a wave of immigration. b) Intel invents a new and more powerful computer chip. c) Tenaga Nasional Berhad (TNB) invests in new electricity transmission technology. d) A severe flood damages factories in Pahang.

in economics, what are the following ⦁ the aggregate supply (AS) curve in the immediate short run.    ⦁ the aggregate supply (AS) curve in the short run.    ⦁ the aggregate supply (AS) in the long run.