When production costs rise, in the short run: A. the aggregate-supply curve shifts down to the right B. the aggregate-demand curve shifts down to the left C. the aggregate-demand curve shifts up to the right D. the aggregate-supply curve shifts up to the left E. both the aggregate-demand curve and the aggregate-supply curve shift to the left

When production costs rise, in the short run: A. the aggregate-supply curve shifts down to the right B. the aggregate-demand curve shifts down to the left C. the aggregate-demand curve shifts up to the right D. the aggregate-supply curve shifts up to the left E. both the aggregate-demand curve and the aggregate-supply curve shift to the left

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government

Section: Chapter Questions

Problem 2WNG

See similar textbooks

When production costs rise, in the short run:

		A. the aggregate-supply curve shifts down to the right
		B. the aggregate-demand curve shifts down to the left
		C. the aggregate-demand curve shifts up to the right
		D. the aggregate-supply curve shifts up to the left
		E. both the aggregate-demand curve and the aggregate-supply curve shift to the left

Video Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Increases in the quality of inputs that do not affect the quantity of those inputs, increase A. short - run aggregate supply but not long - run aggregate supply. B. aggregate quantity supplied. C. long - run aggregate supply but not short - run aggregate supply D. both long - run aggregate supply and aggregate quantity supplied. E. both long - run aggregate supply and short - run aggregate supply.
The quantity of aggregate output demanded will fall if Select one: a. net taxes are reduced. b. the price level increases. c. government spending increases. d. Aggregate supply increases.
What would be the effect of an unexpected increase in the price of oil on a graph showing aggregate demand and short-run aggregate supply that is initially in equilibrium? The effect of an unexpected increase in the price of oil will be for the A. aggregate demand curve to shift down. B. aggregate demand curve to shift up. C. short-run aggregate supply curve to shift up. D. short-run aggregate supply curve to shift down. The new equilibrium will be where A. the new short-run aggregate supply curve interects the original aggregate demand curve. B. the original short-run aggregate supply curve interects the original aggregate demand curve. C. the new short-run aggregate supply curve interects the original short-run aggregate supply curve. D. the new short-run aggregate supply curve interects a new aggregate demand curve.
To decrease output the government could adopt policies that :Select one a. increase aggregate supply and decrease .aggregate demand b. decrease aggregate supply and .aggregate demand c. decrease aggregate supply and increase .aggregate demand d. increase aggregate supply and aggregate .demand
2. Draw an ADAS graph at equilibrium. Suppose there is an increase in government spending. Which curve will shift? Draw the new equilibrium.
Imagine the inputs prices are falling in an economy as a result there will be____. a. Expansion of aggregate supply b. Rightward shift of aggregate supply c. Leftward shift of aggregate supply d. Contraction of aggregate supply
If the price level rises, what happens to aggregate supply? Aggregate supply _______. A. doesn't change, but the quantity of real GDP supplied increases B. decreases C. increases D. doesn't change, but the quantity of real GDP supplied decreases
8. Do the following events have their initial impact on aggregate demand, long run aggregate supply, or short run aggregate supply? Do the curves shift to the right or to the left? Show, using a graph for each question. a. The new government in Canada increases income taxes. AD/AS/LRAS: Equilibrium Price: Equilibrium Quantity: b. There has been an increase in investment in postsecondary education in Canada AD/AS/LRAS: Equilibrium Price: Equilibrium Quantity: c. Canada experiences downward pressure on nominal wages. AD/AS/LRAS: Equilibrium Price:, Equilibrium Quantity: 9 6
An increase in consumer confidence in a country will result in a 1.shift of the aggregate demand curve to the right. 2.shift of the aggregate demand curve to the left. 3.movement up the aggregate demand curve to a lower aggregate output. 4.movement down the aggregate demand curve to a higher aggregate output.
11 ______ is the total quantity of goods and services that will be purchased at all possible price levels. a. Demand b. Aggregate supply c. Supply d. Aggregate demand
From 2006 to 2008 there was a dramatic fall in the price of houses. If this fall made people feel less wealthy, then it would have shifted a. aggregate demand left. b. aggregate demand right. c. aggregate supply left. d. aggregate supply right.
Unemployment would decrease and prices would increase if a. aggregate supply shifted left. b. aggregate demand shifted right. c. aggregate supply shifted right. d. aggregate demand shifted left.