Refer to the graph to the right. The shift from AS, to AS, shown in the diagram is referred to as a(n) AS, AS, O A. decrease in unit costs. OB. negative aggregate supply shock. O. positive aggregate supply shock. D. increase in unit costs. Real GDP Price Level

Solutions for c,d and e

(a) In the short run, the aggregate supply curve is (b) In the long run, the aggregate supply curve is Part 2  Which of the following explain the shape of the short-run aggregate supply curve? Choose one or more: OA. inflexible input prices OB. money illusion OC. international trade effects OD. menu costs O E. wealth effects

no handwritten notes!

Decide if the following events are Micro, shifting supply or demand, or Macro, shifting AD or AS. Give the direction in which the graph shifts. Aggregate Demand Supply Demand Situation Aggregate Supply Sales of Atlanta Braves gear grows with the success of the team. 1. The President and Congress pass a trillion dollar stimulus bill to provide aid during recession. 2. 3. Salmonella outbreak in peanut processing plants threatens lunches for school children. Pomegranates are shown to be cancer fighting superfoods. 4. Value of U.S. dollars declines, exports increase. 5. 6. Global oil prices tank as shale fracking surges. Housing market crashes. Federal 7. Reserve slashes interest rates. 8. House votes to block EPA regulations on coal fired electricity plants.

13. The level of aggregate supply, in the long run, is not affected by A) changes in technology. B) changes in the capital stock. C) changes in the price level. D) changes in the number of workers. 14. The long-run aggregate supply curve will shift to the right if : A) the economy experiences technological change. B) there is a decrease in population. C) the economy experiences high levels of inflation. D) net exports decrease.

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.

Question 14 The effects of a price level that is higher than expected are shown by O shifting the short-run aggregate supply curve right. moving to the left along a given short-run aggregate supply curve. shifting the short-run aggregate supply curve left. O moving to the right along a given short-run aggregate supply curve.

Figure: Determining SRAS Shifts 2) Aggregate Price Level (P) A Aggregate Output (Q) Which of these might cause this change in short-run aggregate supply? Businesses expect inflation to rise. Consumer incomes decrease. O Market power decreases as new business enter an industry. Unions successfully negotiate longer vacation times.