Which of the following could potentially cause a recession? O AD increases, and wages are sticky. AD increases, and wages are flexible. O AD falls, and wages are flexible. O AD decreases, and wages are sticky.

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 starts at full employment but investment exceeds saving, then the economy will move…

A: When AD is above or below the AD required for full employment level equilibrium then it creates…

Q: Suppose the government passes a law that reduces unemployment benefits in a way that causes…

A: A fundamental concept in macroeconomics is the LRAS curve. It shows the economy's potential…

Q: "According to the aggregate demand and aggregate supply model, in the long run a decrease in…

A: "In the long run, aggregate supply curve is vertical at the potential level of GDP and aggregate…

Q: The graph shows a long-run aggregate supply curve and a short-run aggregate supply curve. Draw an…

A: The graph in the picture you provided displays a long-run aggregate supply curve (LAS) and a…

Q: Which of the following factors would cause the long run aggregate supply curve to shift to the left.…

A: The Long-Run Aggregate Supply (LAS) curve is a graphical representation in macroeconomics that shows…

Q: The economy has shifted and the quantity of the real GDP supplied has increased. What has…

A: This can be defined as a concept that shows the continuous progress in any nation It does not happen…

Q: Which of the following can make the Aggregate Supply shift? Select one: a. a decrease in the money…

A: Introduction Its answer is b) a discovery of oil at the bottom of the ocean. Because supply curve…

Q: 3. The graph below shows the AD-AS model for the US in long-run equilibrium. Label both axes and the…

A: AS-AD model is a way of illustrating national income with respect to changes in price level. The…

Q: PRICE LEVEL 120 110 100 1 LRAS ON REAL GOP In the short run, the price level is Natural Real GDP…

A:

Q: 24. Firas a university student, trying to convince his colleague Bilal that the aggregate demand…

A: "Aggregate demand represents the total demand for all finished goods and services produced in an…

Q: Use the graph to answer the question that follows. Price Level PLO To LRAS Y₁ Real GDP SRAS AD…

A: AS-AD model: In this model we are given the aggregate demand curve which exhibits negative…

Q: Which of these will cause aggregate demand to shift to the right? a. Increasing tax rates on…

A: Increasing tax rate decreases consumption, which decreases AD and shifts AD curve to left. Lower…

Q: Consider the following table and identify equilibrium GDP. If the potential GDP is at 12.0, what can…

A: Macroeconomic analysis provides a comprehensive picture of the financial status of an economy. It…

Q: An economy is currently at point A in the graph below. Is this economy experiencing a recessionary…

A: An economy experiences recessionary gap if current output is lower than potential output. An economy…

Q: he graph shows an economy at full employment. how the effect of an increase in the quantity of…

A: An aggregate supply curve shows the total amount of goods and services that businesses in an economy…

Q: The graphs illustrate an initial equilibrium for some economy. Suppose that the economy experiences…

A: Aggregate demand is total demand for the goods and services in the economy. It is equal to the sum…

Q: The graph shows a long-run aggregate supply curve and a short-run aggregate supply curve. Draw an…

A: The graph in the picture you provided displays a long-run aggregate supply curve (LAS) and a…

Q: Determine whether each of the following would cause a shift of the aggregate demand curve, a shift…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Describe how different parts of the economy may have experienced shifts and changes in supply and…

A: Components that can move the call for bend for labor and merchandise, making an exchange quantity be…

Q: AD will shift to the right, other things being equal, when

A: aggreagate demand is defined as the total demand of goods and services within an economy. Now, AD =…

Q: Which of the following would NOT cause a shift in AD? Select one: a. A reduction in interest rates…

A: The aggregate demand curve,or AD curve, shifts to the right as the components of consolidated…

Q: The aggregate demand curve shows the relationship between the volume of purchases and the price…

A: Aggregate demand (AD) is defined as the total amount of commodities and services that is bought by…

Q: In 2019, before the Covid-19 pandemic began affecting the U.S. economy, Nouriel Roubini of New York…

A: A supply shock is an unexpected event that causes a change in the supply of a product. Supply shocks…

Q: Which of the following statements will not parallel shift the aggregate supply curve? A. A reduction…

A: Aggregate supply curve shows a positive relationship between price level and real output.

Q: Identify and explain what will happen to the price level and Real GDP (in the short run) as a result…

A: Aggregate supply curve shows the various amount of aggregate output which the producers in the…

Q: “John Maynard Keynes introduced the AD-AS macroeconomic model (aggregate demand- aggregate supply)…

A: Aggregate demand curve shows the total value of the goods and services that are demanded at a…

Q: Figure 34-3 PRICE LEVEL a a a LRAS Y, Y₂ QUANTITY OF OUTPUT SRAS. SRAS. AD Refer to Figure 34-3.…

A: At point B, the economy is in short-run equilibrium, as it is the point where the short-run…

Q: Suppose that the coronavirus pandemic (COVID 19) in 2020 has resulted in a leftward shift of the…

A: Dear student, You have asked multiple questions in single post. I am going to answer the following…

Q: According to Say's law, aggregate demand is always equal to aggregate supply. O True O False

A: Aggregate demand is a macroeconomic phrase that refers to the total demand for products and services…

Q: In the intermediate range of an aggregate supply curve an increase in total demand will cause…

A: According to economic theories, the aggregate supply curve has three ranges that depicts the…

Q: The following graph shows aggregate demand and short-run aggregate supply. 1.) Use the line drawing…

A: A consumer always tend to save more with the rise in their income level. Moreover, they prefer to…