For example, an increase in the money supply,(NORMINAL, REAL) a    variable, will cause the price level, a (NORMINAL, REAL)   variable, to increase but will have no long-run effect on the quantity of goods and services the economy can produce, a   (REAL, NORMINAL) variable. The notion that an increase in the quantity of money will impact the price level but not the output level is known as (MONETARY, THE QUANITY, PRICE)   .

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:

type plz

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.

Refer to the graph shown. During the Reagan Administration (1981 to 1989), tax rates were reduced significantly, while federal defense spending rose by 80 percent. The effect of these policies on the AD curve is best shown as a movement from: Price level Multiple Choice O B O A to B A to C A to D. C AD1 ADO BOTOXI AD2 Real output Submi

Need help with this. Please show how to adjust the AS and AD lines. Thanks!

The U.S. economy is initially in short-run macro-equilibrium.  Assume that China falls into a deep recession.  As a result, we observe the following in our economy:   Question 34 options:   a)  Both the price level and real GDP increase.   b)  The price level falls and real GDP increases   c)  Both the price level and real GDP decrease   d)  The price level increases and real GDP falls

See below. These are true or false questions.  1). In the long-run, aggregate supply is a horizontal line at the long-run price level people can afford. 2). One reason for why the aggregate demand curve slopes down is the wealth effect, which means that a higher price level leads to lower real wealth and, thereby, reduces the level of consumption.

Answer the given question with a proper explanation and step-by-step solution.

In the year 2023, aggregate demand and aggregate supply in the fictional country of Gurder are represented by the curves AD2023 and AS on the following graph. Suppose the natural level of output in this economy is $10 trillion. On the following graph, use the green line (triangle symbol) to plot the long-run aggregate supply (LRAS) curve for this economy. PRICE LEVEL 108 107 106 105 104 103 102 101 100 0 2 AD 2023 B I A 4 6 8 10 OUTPUT (Trillions of dollars) 12 AS ADB 14 AD А 16 A LRAS Outcome C (?)