Which circumstance would contribute to a relatively flat slope of the short-run aggregate supply  curve? (a) An increase in investment spending on residential construction causes an increase in wages  for skilled carpenters. (b) An increase in foreign tourists coming to the United States causes an increase in prices of  lodging at resort destinations. (c) A high number of vacancies in a shopping mall allows retail tenants to take on larger spaces  with no increase in rent. (d) An increase in consumption spending on home furnishings allows furniture stores to reduce  the number of promotional discounts offered.

Japan and the United States are major trading partners and the exchange rate between the Japanese yen and the United States dollar is determined in a flexible foreign exchange market. b) Will each of the following increase, decrease, or stay the same as a result of the increase in the United States real income? (i) Japan’s net exports. Explain. (ii) Unemployment in Japan. Explain. (iii) Japan’s long-run aggregate supply (c) Assume instead household savings increased in the United States. What would happen on loanable funds market in the United States with the supply of loanable funds, and show the effect of the increase in household savings on the equilibrium real interest rate. (d) Based on the change in the equilibrium real interest rate identified in part (c), what will happen to financial capital flows to the United States? e) Based on your answer to part (d), what will happen to the international value of the dollar in the foreign exchange market? Explain. (f) What will happen to…

Which of the following events would not involve a supply shock that would shift the aggregate supply curve?   (i) The Cosatu union disintegrates and the minimum wage is abolished. (ii) African bank plc’s bad debt creates a financial crisis and that leads to reduction in money supply. (iii) 2016 drought destroys half of the crops farmed. (iv) A tax on sugar is levied on companies that produce sugary beverages. Group of answer choices     Only ii and iv are correct.   Only ii is correct.   Only iii and iv are correct.   Only i and ii are correct.

Question 14 Suppose investment spending falls and as a result firms reduce their level of production of good and services. We call this a supply shock. True False

4) For each outcome below, tell what type of shift must have taken place in either the aggregate demand curve or the long-run aggregate supply curve. (a) In the short run, the price level is unchanged and output rises. (b) In the long run, the price level declines and output is unchanged. (c) In the long run, the price level rises and output decline.

(18) Assume that the economy begins in long run equilibrium and the central bank increases the target interest rate. In the short run, what happens to the price level? Group of answer choices (A) It goes down (B) It goes up (C) It stays the same

(20) Assume that the economy begins in long run equilibrium and the central bank increases the target interest rate. In the long run, what happens to the price level? Group of answer choices (A) It goes down (B) It stays the same (C) It goes up

When the economy enters a recession, your employer is_ to reduce your wages because unlikely; lower wages 1) reduce productivity and morale likely; output prices 2) always fall during recession unlikely; output and 3) input prices generally fall during recession likely; aggregate 4) demand is vertical in the long run

All of the following impact (shift) the short-run aggregate supply curve EXCEPTtechnological innovationlabor costsresource costsunemployment

$2 S₁ S₂ 園 D D₁ Da (A) r S₁ $2 D₂ (B) St S₂ Y Y (C) (D) Which of the diagrams in Figure 26-7 shows an economic recession caused primarily by a change aggregate demand (A) (B)