Price Le A Real GDP Comparing points A and B on this graph, which of the following is true? O At point B, there would be less employment and higher unemployment than at point A O At point B, there would be a lower wage than at point A. O At point B, there is a higher price level that increases the quantity of real GDP supplied O At point A, there is greater pressure on the price level and inflation than at point B. O At point A, with a lower wage rate, aggregate supply has decreased compared to point

Price Le A Real GDP Comparing points A and B on this graph, which of the following is true? O At point B, there would be less employment and higher unemployment than at point A O At point B, there would be a lower wage than at point A. O At point B, there is a higher price level that increases the quantity of real GDP supplied O At point A, there is greater pressure on the price level and inflation than at point B. O At point A, with a lower wage rate, aggregate supply has decreased compared to point

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 3SCQ: The short run aggregate supply curve was constructed assuming that as the price of outputs...

See similar textbooks

Similar questions

The economy has shifted and the quantity of the real GDP supplied has increased. What has potentially happened to aggregate price levels? Potentially the price levels have increased to a higher aggregate price level and if the wages are sticky, businesses have hired more employees as labor has become cheaper. O Potentially the price levels have decreased to a lower aggregate price level and if the wages are sticky, businesses have hired more employees as labor has become cheaper. Potentially the price levels have increased to a higher aggregate price level and if the wages are sticky, businesses have fired some employees as labor has become too expensive.
How does an increase in the price level affect the quantity of real GDP supplied in the long run? OA In the long run, an increase in the price level will increase real GDP OB In the long run, an increase in the price level decreases inflation, which will decrease real GDP OC. In the long run, an increase in the price level increases inflation, which will decrease real GDP OD. Changes in the price level do not affect the level of GDP in the long run. CIDS Price level (GDP deflator) 123 113- 103- Long-Run Aggregate Supply LRAS2 LRAS2 LRAS23 Real GDP (trillions of $)
Make the following calculations according to the table below. If you need, 2017 ● 2018 2019 2020 2021 Quantitiy Price Quantitiy Price Quantitiy Price Quantitiy Price Quantitiy Price Good A 6 2 4 10 6 5 8 4 Good B 2 5 8 4 6 4 6 68 2 26 6 Good C 8 1 10 3 4 2 10 a. Calculate nominal GDP, real GDP and GDP growing rates for all years. b. Calculate the inflation using the GDP deflator and Consumer Price Index(CPI) methods. Explain briefly, why inflation rates are different in these two calculations method. 20 8 3 use the year 2017 as the base year, the bundle consists of 3 Good A, 2 Good B and 4 Good C
R The model of aggregate demand/aggregate supply... O Identifies the equilibrium GDP and price level as well as the gap between the equilibrium GDP and the potential GDP Identifies the potential GDP and price level as well as the gap between the price level and the inflation. O Identifies the equilibrium GDP the economy will reach in the long A run O Identifies the equilibrium quantity and price for consumer goods 10 % 5 T 6 O Y Com liji fa 887 & 7 7 U 8 4 f10 num lk. 8 ( 5 9 開

Exhibit 13-1 Price Level a aa H LRAS Real GDP SRAS, Select one: O a. A-E-B-H-C O b. A-E-G-I-C O c. A-D-B-E-A O d. A-D-B-H-C e. A-E-B-I-C SRAS2 SRAS AD₁ ADS 32. Refer to Exhibit 13-1. A continued increase in the price of oil, combined with Fed attempts to respond to these oil shocks by increasing aggregate demand, is likely to take the economy along which of the following paths?
1. Refer to the graph shown below. Which graph will lead to a lower real GDP and to pressure for a higher price level and inflation? Price Level D AD₂ AD LRAS Real GDP (a) Inflationary pressure hom a shit in AD A. Graph A B. Graph B C. None of the above D. Both graphs SRAS Price Level: Pa AD Y.Y. Real GDP (b) Inflationary pressure from a shift in AS LRAS SRAS, SRAS,
Price Level LAS AS1 AD AS2 Real GDP Refer to the graph above to answer this question. If the economy was initially at point A, what would a movement to point B suggest? Select one: O a. The movement could be the result of an increase in nominal wages Ob. The movement could be the result of increased government spending. O c. The movement could be the result of an increase in aggregate demand. d. The movement could be the result of a decrease in the costs of production. O
How might deflation set off further deflation? O If prices are falling in the economy, this will cause a decrease in the number of goods exported from the country and thus cause prices to fall further. O Falling prices cause firms to increase production, and the increase in supply causes prices to fall further. O Falling prices may cause people to defer spending in expectation of further lower prices, and this leads to more deflation. O Falling prices can increase the nominal interest rates in the economy and reduce consumption. tv
If there is excess demand for goods and services in the economy at the current price level, then the: If there is excess demand for goods and services in the economy at the current price level, then the: A. price level will remain the same B. GDP will fall C. price level will increase D. price level will decrease
f. Technological improvements increase productivity. gram to illustrate and explain how each of the following will affect the equilibrium price level and real GDP: a. Consumers expect a recession. b. Foreign income rises. c. Foreign price levels fall. d. Government spending increases. e. Workers expect higher future inflation and negotiate Use an aggregate demand and aggregate supply dia- higher wages now. In th
does not increase output and employment but prices. O a. None of these O b. Inflationary gap O c. Deflationary gap O d. Equilibrium
PRICE LEVEL a a" a" LRAS Y, Y₂ QUANTITY OF OUTPUT 8 a. rising price level and a falling level of output, as the economy moves to point A. b. falling price level and a falling level of output, as the economy moves to point C. c. falling price level and a rising level of output, as the economy moves to point A O d. rising price level and a rising level of output, as the economy moves to point C. SRAS, SRAS Refer to Figure 34-3. Starting from point B and assuming that aggregate demand is held constant, in the long run the economy is likely to experience a AD