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.

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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An improvement in the level of technology in an economy will result in An upward movement along the aggregate supply curve An outward shift of the aggregate supply curve O A downward movement along the aggregate supply curve An inward shift of the aggregate supply curve
The long-run aggregate supply curve relates the aggregate price level to real GDP O in the short run. after factor prices are fully adjusted to eliminate output gaps. O when the wage level is not responding to the output gaps. when technology is improving the labour productivity.
“John Maynard Keynes introduced the AD-AS macroeconomic model (aggregate demand- aggregate supply) to determine the equilibrium level of real output and the level of prices in the economy” 1. Draw a diagram with aggregate demand, short-run aggregate supply, and long-run aggregate supply. 2. Discuss the reasons why the aggregate demand curve is downward sloping, while the short-run aggregate-supply curve is upward sloping?
Which statements accurately explain the slope of the aggregate-demand curve? (choose all statements that are correct) O The Canadian exchange rate depreciates, so Americans import more wheat from Canada U with a sharp increase in the consumer price Index, there is a surge in demand for durable goods before their prices rise even furt O A rise in the rate of interest on Ahmed's saving account makes him feel wealthier so he invests in a new office computer O When the Euro appreciates against the Canadian dollar, Canadians shift some of their demand for services to imports from Europe O When interest rates fall, Jennifer decides to buy some new farm equipment O with prices down and wages fixed by contract, Rocky's gravel pit decides to lay off workers OJake feels wealthier because of the price drop, so he decides to buy a new pick-up truck
Along the long-run aggregate supply curve, the level of Real GDP supplied with increases in the price level. O does not change O increases O decreases slightly O decreases dramatically
Consider the graph below. Suppose that the economy is at point A Price Level LRAS SRAS A AD + Y (GDP) Currently, this economy Select in the long run, what will happen in this economy? The ISelect) curvets) will ISelect) because ISelect The price level will Select) GDP will (Select)
Prepare a scratch paper in order to solve the following qu ions. The short run aggregate supply curve shifts leftward when costs of production increase O True False The aggregate demand curve is the total quantity of an economy's intermediate goods demanded at all price levels O True O False
Which of the following would be one of the factors that shift the aggregate demand curve? A change in: Domestic resource availability O Prices of imported resources O Property values O Productivity
2. Briefly explain the relationship between equilibrium real GDP and the unemployment rate.
es/118790/quizzes/952344/take OS D SU My ASU ASU CANVAS Question 2 Which of the following would cause a shift in the short-run aggregate supply curve, but no change in the long-run aggregate supply curve? O an increase in the size of the labor force an increase in the wage rate an increase in the quantity of capital O all of the above would shiftboththe long-run aggregate supply curve and the short-run aggregate supply curve. Question 3 Which of the following would NOT lead to a shift in the long- run aggregate supply curve? O An increase in the money supply. 1
Suppose the economu is operating at less than full employment. an increase in aggregate demand will result in: A. An increase in the general price level and perhaps an increase in the general price level B. A decrease in the general price level and perhaps a decrease in aggregate demand C. An increase in aggregate output and perhaps a decrease in the general price level D. An increase in the general price level and perhaps a decrease in aggregate output
Based on Aggregate Demand and Aggregate Supply Model, what is the effect on AD of each of the following events (will AD increase and shift to the right or decrease and shift to the left): A decrease in individual taxes. A decrease in government spending. An increase in interest rates.