Price Level P₁ AD₁ AD₂ AS Q₁ Q2 Q3 Real Domestic Output Refer to the figure above. A shift from AD 1 shifts to AD 2 would be consistent with what economic event in U.S. history? O Demand-pull inflation in the late 1960s Cost-push inflation in the mid-1970s O Full-employment in the late 1990s Recession in 2007-09

Price Level P₁ AD₁ AD₂ AS Q₁ Q2 Q3 Real Domestic Output Refer to the figure above. A shift from AD 1 shifts to AD 2 would be consistent with what economic event in U.S. history? O Demand-pull inflation in the late 1960s Cost-push inflation in the mid-1970s O Full-employment in the late 1990s Recession in 2007-09

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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"Considering only aggregate supply curve, when output is greater than the natural level:" C) the unemployment rate is equal to the natural unemployment rate. B) the unemployment rate is greater than the natural unemployment rate. A) the price level is greater than the expected price level. D) the price level will be lower next period than this period. E) Price doesn't change next period
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Price Level LRAS I о, он ог Real GDP SRAS, SRAS SRAS₂ ON=Natural Real GDP AD Refer to Figure 9-3. If the economy is in short-run equilibrium at point C, the (actual) unemployment rate is less than the natural unemployment rate. the (actual) unemployment rate is equal to the natural unemployment rate. the (actual) unemployment rate is greater than the natural unemployment rate. the relationship between the (actual) unemployment rate and the natural unemployment rate cannot be determined from the available information.
Question 6 Which of the following characteristics is NOT consistent with an upward-sloping AS curve? O when forecasted future prices increase, the AS curve shifts upward. a rise in the firms' pricing power will lead to a rise in the aggregate price. the AS curve passes through a point that corresponds to the natural level of national income and stable price. O as inflation rises output growth falls
Which of the following is NOT one of the negative effects associated with inflation? O Menu costs, when producers need to constantly update prices to reflect the changing value of the dollar. O The negative impact on borrowers with fixed payments (like mortgage payments). O Shoe leather costs, the cost associated with consumers efforts to ajdust behavior to counter-act inflation. O The lowering of the purchasing power for individuals who hold large amounts of cash. Because of inflation, what happens to the value of the REAL minimum wage during periods of time when congress keeps the minimum wage constant (like it has been since 2009). O Since prices go up, real minimum wage decreases. O The value of the real minimum wage is determined by the level of effort put in by workers. If the congress is keeping the minimum wage constant, the real minimum wage is not changing. O The real minimum wage increases since inflation makes all prices increase.
In the graph you've just explored, what is the inflation rate if the unemployment rate is 8 percent? ___ percent per year >>> Answer to 1 decimal place. Thank you
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Question 4 Exhibit 14A-3 Macro AD-AS Model Price level CPI P3 P₂ P₁ LRAS SRAS Yp Y₁ AD Real GDP (billions of dollars per year) In Exhibit 14A-3, the level of real GDP represented by Yp: O is potential real GDP for this economy. O indicates that the economy is experiencing zero inflation. O indicates that the economy is experiencing a recessionary gap. O would be associated with considerable unemployment.
9. How will (a) an unexpected 3 percent fall in the price level in the goods and services market differ from (b) 1 percent inflation when 4 percent inflation had been expected? What impact would (a) and (b) have on the real price of resources, profit margins, output, and employment? Explain.
Which of the following shifts in aggregate demand and short-run aggregate supply would cause an unambiguous increase in inflation? Select one: O a. A decrease in AD and an increase in SRAS O b. No change in AD and an increase in SRAS O c. An increase in AD and an increase in SRAS d. An increase in AD and a decrease in SRAS O e. A decrease in AD and a decrease in SRAS
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