The long-run aggregate supply curve shows that by itself a permanent change in aggregate demand would lead to a long-run change   in the price level and output. in the price level, but not output. in output, but not the price level. in neither the price level nor output.

om the information provided, determine whether you are given an Aggregate Supply or Aggregate Demand Schedule and, if Aggregate Supply, the me frame associated with the price level and output. HINT: You may want to plot out the points on a graph. Price Level Output (in billions) $565 561 558 555 550 124 123 122 121 120

Which of these are consequences of an increase in long-run aggregate supply? an increase in full-employment output an increase in the price level a decrease in the long-run rate of unemployment an increase in short-run aggregate supply

Suppose the people of Canada has reduced their spending on goods and services from the United States.   What will be the effect on real GDP and the price level in the short run? In the long run? Show your results graphically.

Which of the following is likely to occur if an increase in legal immigrants significantly reduces the wages of workers, ceteris paribus? A. Aggregate supply will decrease (shift left). B. Aggregate supply will increase (shift right). C. Aggregate demand will increase (shift right). D. Aggregate demand will decrease (shift left).

Which of the following are assumed to remain unchanged along a given short-run aggregate supply curve? Check all that apply.   A. The position of the aggregate demand curve   B. The price level   C. Real GDP   D. Input prices

In 2004, the economy of Minitown had an aggregate demand and aggregate supply according to the following schedule: PRice level Aggregate Demand Short-run Aggregate supply Long run aggregate supply 100 $1625 $1205 $1370 110 $1550 $1270 $1370 120 $1475 $1335 $1370 130 $1400 $1400 $1370 140 $1325 $1465 $1370 150 $1250 $1530 $1370 160 $1175 $1595 $1370 What was Minitown’s short-run equilibrium output in 2004?

A rightward shift in the aggregate supply curve with no change in the aggregate demand curve signals an economic expansion. True or False?

1)Potential output is the same as long-run aggregate supply. Select one: True False   2)An increase in the price level will cause a decrease in the aggregate amount of output supplied. Select one: True False

The following graph represents the short-run aggregate supply curve (SRAS) based on an expected price level of 120. The economy's full- employment output level is $9 trillion. Major unions across the country have recently negotiated three-year wage contracts with employers. The wage contracts are based on an expected price level of 120, but the actual price level turns out to be 160. Show the short-run effect of the unexpectedly high price level by dragging the curve or moving the point to the appropriate position. PRICE LEVEL (CPI) 240 200 160 40 0 0 3 SRAS[120] 6 9 12 REAL GDP (Trillions of dollars) 15 18 SRAS[120] 0 (?) Interpret the change you drew on the previous graph by filling in the blanks in the following paragraph: