Some politicians have suggested tying the minimum wage to the consumer price index (CPI). Applying the concept from Aggregate Demand and Aggregate Supply , what effects would this policy most likely have on output, the price level, and employment? Explain why

Economists forecast future economic conditions by studying variables that tend to fluctuate in advance of the overall economy. The most significant of these variables are known as leading indicators, and they compose the index of leading economic indicators. Which of the following variables are measured as part of this index?  Check all that apply. Supplier deliveries   The ratio of elderly to nonelderly workers   New orders for consumer goods   Stock prices   The money supply     True or False: Businesses and government care only about long-run economic forecasts, because they cannot adapt policy or output to accommodate short-run fluctuations. False   True     Suppose the most recent data show that the average initial weekly claims for unemployment insurance have recently decreased. This change suggests  ____ period in the coming months.

Which should come to the void?

There are three distinct reasons why the aggregate demand curve slopes downward.  List and discuss each reason.   The aggregate supply curve can be upward sloping or vertical depending upon the time frame we are considering (short-run or long-run).  In what time frame is the aggregate supply curve vertical?  Why?  In what time frame is the aggregate supply curve upward sloping? Why?

Explain two ways in which a recession might raise the natural rate of unemployment (Macroeconomics field of question)

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

Please Define Aggregate supply in no more than 3 lines

Use a correctly labeled aggregate demand and aggregate supply graph to illustrate cost-push inflation. Given an example of what might cause cost-push inflation in the economy

Suppose the full-employment level of real output (Q for a hypothetical economy is $250 and the price level (P) initially is 100. Use the short-run aggregate supply schedules below to answer the questions that follow. AS (P - 100) AS (P - 125) AS (P - 75) P Q P P 125 $ 280 125 $ 250 125 $ 310 100 250 100 220 100 280 75 220 75 190 75 250 Instructions: Enter your answers as a whole number. a. What is the level of real output in the short run if the price level unexpectedly rises from 100 to 125 because of an increase in aggregate demand? What happens if the price level unexpectedly falls from 100 to 75 because of a decrease in aggregate demand? b. What is the level of real output in the long run when the price level rises from 100 to 125? When the price level falls from 100 to 75?

If the economy’s labor force is increasing and also becoming more productive, what will happen to the aggregate supply curve?