Exhibit 14-2 Price Level A B Real GDP In Exhibit 14-2, which curve represents short-run aggregate supply? a. A b. B C. C d. none of the above

QUESTION 9 The graph below reflects a significant increase in world oil prices. What will the impact on aggregate supply most likely lead to? Price Level P₂ P₁ Y2 Yi AS' AS AD Real National Income a. an increase in economic growth b. an increase in input prices c. a decrease in the natural unemployment rate d. less inflationary pressures

Most economists use the aggregate demand and aggregate supply model primarily to analyzea. short-run fluctuations in the economy.b. the effects of macroeconomic policy on the prices of individual goods.c. the long-run effects of international trade policies.d. productivity and economic growth.

The following graph shows aggregate demand and short-run aggregate supply. Price level 1.) Use the line drawing tool to show the effect of an adjustment of workers and firms to a higher than expected price level. Properly label this line. SRAS, 2.) Use the point drawing tool to show the new equilibrium price level and real GDP. Label this point 'B'. Carefully follow the instructions above, and only draw the required objects. A ADO

Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, a shift in neither curve, or shift in both curves.      If a shift is caused, indicate which curve shifts, and in which direction it shifts. What happens to aggregate output and the price level in each case?  4. The wages rate decreases.

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Which of the following is an assumption of the aggregate demand-aggregate supply model? A. An economy is always at full-employment level in the short run. B. Capital stock cannot be varied in the short run. C. Producers are reluctant to change prices of their products even in the long run. D. Long-run aggregate supply curve slopes upward.

a.  What are the short-run equilibrium real GDP and price level in 2019?b.  What is the long-run equilibrium real GDP?c. Is the short-run macroeconomic equilibrium a full-employment equilibrium, belowfull-employment equilibrium, or above full-employment equilibrium?d. In transition to the long run, how would the wages in this economy change?e.  Following from d, explain how would the short run supply curve move to its long runposition, as the changes in the nominal wages take effect.f.  What will the long run price level be?

Which of the following would cause the Aggregate Supply curve to move from AS to AS2 in the graph below?   A) A general increase in energy and labor cost for businesses. B) A general decrease in labor cost for businesses. C) An increase in productivity. D) A federal government increase in spending.

Aggregate demand is more likely to     than aggregate supplyl in the short run a- bigger leakages b-national income c-domestic investment d- shift substantually