In the neoclassical model, if the economy starts out on the LRAS (Long Run Aggregate Supply curve), with GDP equal to potential GDP, but then aggregate demand shifts to the left for any reason, what effect will this have in the long run? O a. Inflation O b. Higher real GDP Oc. Deflation and lower real GDP O d. Inflation and higher real GDP e. Deflation Of. Lower real GDP

In the neoclassical model, if the economy starts out on the LRAS (Long Run Aggregate Supply curve), with GDP equal to potential GDP, but then aggregate demand shifts to the left for any reason, what effect will this have in the long run? O a. Inflation O b. Higher real GDP Oc. Deflation and lower real GDP O d. Inflation and higher real GDP e. Deflation Of. Lower real GDP

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Potential GDP is the level of aggregate output Select one: a. that can be sustained in the long run without inflation O b. that can be produced if structural unemployment is zero O c. that can be produced at a zero unemployment rate O d. that can be sustained in the long run, if the capacity utilization is below 100%
Potential GDP is O a. a measure of the short term fluctuations in real GDP. O b. another name for nominal GDP. O c. equal to the maximum amount of goods and services that can be produced at any given time. O d. the level of output produced when the economy is fully employed. O e. another name for real GDP.
Macroeconomic indicators can be categorized as "leading" or "lagging". Which one in the list below is not a lagging indicator? Select one: O O a. The Consumer Price Index b. Labor market statistics c. Commodity prices d. Retail Sales
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Economists use the neoclassical growth model to explain fluctuations in the business cycle because can; the model shows how economic growth changes when the factors of production (capital, labour force and technology) change. O cannot; the model does not take into account technology changes. O cannot; the model only explains what determines the long term trends in output or output per labour. O can; as a long-run model, it captures business cycles over very long periods of time. O cannot; the model is more focused on government activity than private sector activity. O O
An inflationary gap is automatically closed by wages that shift the O a) rising; SRAS curve rightward O b) falling; SRAS curve rightward c) falling: SRAS curve leftward d) rising: SRAS curve leftward
please do all
Output in the short run is determined by which of the following factors when an economy operates at ful! employment? Select one: a. the price level O b. the labor force C supply O d. demand
What likely occurred during 2018 if nominal GDP did not change and real GDP decreased, relative to the year 2017? Select one: O a. Total production of goods and services in the economy did not change in 2018. cross out O b. The economy experienced deflation during 2018. cross out cross out O c. The price level did not change during 2018. O d. Total production of goods and services in the economy increased during 2018. cross out cross out O e. The economy experienced inflation during 2018