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.

Q: A new batch of college graduates enter the workforce boosting the labor productivity of corpor…

A: Aggregate demand is the total spending on domestically made goods and services in an economy.…

Q: A decrease in the expected price level shifts   only the long-run aggregate supply curve right. only…

A: The long run aggregate supply curve is a vertical line representing the potential GDP level, which…

Q: Why do consumers mostly gain little buying power during a deflation? Firms refuse to drop prices.…

A: A decrease in the average price level of all goods and services over time in a particular economy is…

Q: If the economy experiences inflation and economic growth, this means that aggregate demand grows by…

A: When there is a positive/rightward shift in the AD(from AD0 to AD1), which is larger than the shift…

Q: Europe and Asia both fall into deep economic recessions. What impact will this have on U.S.…

A: Aggregate demand refers to the amount of sales proceeds which an entrepreneur actually expects from…

Q: True or false The aggregate supply curve is vertical in the long run at the full-employment level…

A: According to the given question Answer is TRUE

Q: When does macroeconomic equilibrium occur? Multiple Choice When exports equal imports. When the…

A: When studying economics, macroeconomics deals with broader concepts of economics that provide…

Q: Which of the following would cause an increase in the price level in the long run? Choose one:A.…

A: Price level refers to the monetary value of a goods or services that is sold in the market. In a…

Q: Assume that the United States economy is currently in a recession in a short-run equilibrium. Draw…

A: When the economy is in recession, real GDP is less than potential GDP.

Q: In the short run, the quantity of output that firms supply can deviate from the natural level of…

A: The sticky wage theory contends that changes in business performance or the status of the economy…

Q: The economy of Tuckerland has the following aggregate demand and supply schedules, reflecting real…

A: Equilibrium is achieved where Aggregate demand intersects Aggregate supply

Q: The table shows the aggregate demand and short-run aggregato supply schedulos of Chamber Island in…

A: Deflation: - it is the phenomenon of a decrease in the prices of goods and services in an economy.

Q: In 2006, the economy of Aptonville had an aggregate demand and aggregate supply according to the…

A: Aggregate Demand (AD) is the total demand (dd) for all the goods (commodities) and services in an…

Q: Which of these would shift the short-run aggregate supply curve but not have any impact on the…

A: When consumer prices rise, businesses experience higher production costs, leading to a reduced…

Q: Draw an ADAS graph at equilibrium. Suppose there is an increase in government spending. Which curve…

A: The following diagram shows the AD-AS graph at equilibrium.

Q: Which affect both the long-run and short-run aggregate supply curves? Choose all that apply. Group…

A: The LRAS curve and the SRAS curve depict the total output produced in an economy (Q) and the price…

Q: In a new initiative to promote exercise, the Australian government spends a lot of money building…

A: Here, it is given that the government increases its expenditure  on building and renovating parks to…

Q: Which of the following reasons could explain why the aggregate quantity of output supplied changes?…

A: Investment expenditure, also referred to as gross private domestic investment, encompasses the…

Q: Draw an ADAS graph at equilibrium. Suppose the stock market crashes. Which curve will shift? Draw…

A: Stock market crashes means sudden decline in stock prices which is a great loss to the existing…

Q: Which of the following would shift the long run aggregate supply curve to the left? Decrease in…

A: In the long run, the aggregate supply curve is vertical and shows the output level will remain the…

Q: In 1998, the economy of Aptonville had an aggregate demand and aggregate supply according to the…

A: In an economy, the equilibrium level of general price if the one at which aggregate supply equates…

Q: If oil prices rose at the same time that the federal government decreases taxes in the short run…

A: Demand: - Demand is the relationship between the quantity demanded and the price of a good. There is…

Q: The following events shift either aggregated demand, aggregated supply, both or neither in the UK.…

A: The aggregate supply refers to the total supply of all finished commodities produced in an economy…

Q: A decrease in the price level accompanied by no change in the money wage rate leads to movement…

A: The short-run aggregate supply (SRAS) curve depicts the positive relationship between price and…

Q: Discuss about the three time horizons and what is the difference between the immediate short-run…

A: Three time horizons- Very Short time period- It is a time period when all factor of production are…

Q: The economy's AS curve will shift downward in the short run if there is: OA. an increase in the cost…

A: The AS curve shows the relationship between the price and the aggregate supply. It tells that for…

Q: the aggregate demand is 300 + 50P and the aggregate supply is 100 + 60P calculate the value of P

A: Actually in the question, Aggregate demand = 300 + 50P Aggregate supply = 100 + 60P P or price…

Q: Which range of aggregate supply would represent an economy where prices are rising as output…

A: The aggregate supply of a country's economy is its output of goods and services. The four production…

Q: an increase in the price level cause the aggregate supply curve to shiftto anotherupply schedule.…

A: We are going to use AD-AS dynamics to answer this question.

Q: How do people typically respond to higher real interest rates? by saving less by paying more taxes…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The following events have occurred in the history of the United States: A deep recession hits the…

A: Answer - Analyzing the different scenario and there effect on there different economic variables -…

Q: In the long-run, aggregate supply is a horizontal line at the long-run price level people can…

A: However, in the long run, the level of prices has no impact on aggregate supply, which is instead…

Q: In 2003, the economy of Microtania had an aggregate demand and aggregate supply according to the…

A: Short-run equilibrium output occurs at the intersection of aggregate demand and short-run aggregate…

Q: In 2013, the economy of Boonton had an aggregate demand and aggregate supply according to the…

A: Long-run equilibrium refers to the situation where the level of output is equal to the full…

Q: In the short run, what is the impact on the price level and the level of the real GDP of each of the…

A: In equilibrium, the supply and demand curves intersect at E and the price level is at P0 and GDP…

Q: In 2001, the economy of Boxtown had an aggregate demand and aggregate supply according to the…

A: Short-Run equilibrium is a situation where the price level is such that the quantity supplied must…

Q: What would be the effect of an unexpected increase in the price of oil on a graph showing aggregate…

A: An unexpected increase in the price of oil will increase the cost of production for many firms. This…

Q: aggregate demand

A: In macroeconomics, the total demand for final goods and services in an economy in a given time…

Q: Which of these does NOT cause shifts in short run aggregate supply (SRAS Nominal wages O Firms'…

A: Short run aggregate supply curve shows a positive relationship between price and output. It slopes…

Q: Now adjust the graph to show the new long-run equilibrium. What causes the economy to move from its…

A: The AD-AS framework, also known as the Aggregate Demand-Aggregate Supply framework, is a…

Q: In 1999, the economy of Mistania had an aggregate demand and aggregate supply according to the…

A: Aggregate demand < short run and long run aggregate supply which implies there is less demand and…