Essentials of Economics (MindTap Course List)
8th Edition
ISBN: 9781337091992
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 23, Problem 5CQQ
To determine
The cause of stagflation.
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Students have asked these similar questions
Aggregate Demand will increase if:
A. Imports fall.
B. Investment falls.
C. Consumption falls.
D. Exports fall.
Stagflation is caused by aa. leftward shift in the aggregate-demand curve.b. rightward shift in the aggregate-demand curve.c. leftward shift in the aggregate-supply curve.d. rightward shift in the aggregate-supply curve.
If the government announces a decrease in spending with an increase in taxes, which of the following would most likely occur?
a.
a leftward shift of the aggregate demand curve
b.
a rightward shift of the aggregate demand curve
c.
an upward movement along the aggregate demand curve
d.
a downward movement along the aggregate demand curve
e.
no change in the aggregate demand curve as well as no movement along it
Chapter 23 Solutions
Essentials of Economics (MindTap Course List)
Ch. 23.1 - Prob. 1QQCh. 23.2 - Prob. 2QQCh. 23.3 - Prob. 3QQCh. 23.4 - Prob. 4QQCh. 23.5 - Prob. 5QQCh. 23 - Prob. 1CQQCh. 23 - Prob. 2CQQCh. 23 - Prob. 3CQQCh. 23 - Prob. 4CQQCh. 23 - Prob. 5CQQ
Ch. 23 - Prob. 6CQQCh. 23 - Prob. 1QRCh. 23 - Prob. 2QRCh. 23 - Prob. 3QRCh. 23 - Prob. 4QRCh. 23 - Prob. 5QRCh. 23 - Prob. 6QRCh. 23 - Prob. 7QRCh. 23 - Prob. 1PACh. 23 - Prob. 2PACh. 23 - Prob. 3PACh. 23 - Prob. 4PACh. 23 - Prob. 5PACh. 23 - Prob. 6PACh. 23 - Prob. 7PACh. 23 - Prob. 8PACh. 23 - Prob. 9PACh. 23 - Prob. 10PA
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- Shortly before the start of the recession in 2008, housing prices fell and wealth declined. The aggregate supply/demand model suggests this caused A. a decline in consumption and a decrease in aggregate demand. B. a decline in investment and a decrease in aggregate demand. C. a rise in consumption and decrease in aggregate demand. D. a decline in consumption and an increase in short-run aggregate supplyarrow_forwardFrom 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.arrow_forward2. How does each of the following affect the aggregate demand curve? a. Government spending increases. b. The amount of taxes collected decreases.arrow_forward
- c. If aggregate demand shifts right, what is equilibrium output? d. if aggregate demand shifts left, what is equilibrium output?arrow_forwardWhich does not increase aggregate demand?Select one: a.lower income taxes. b.lower value of Canadian dollar. c.consumers become more optimistic. d.lower interest rates. e.technological innovations.arrow_forwardAn 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.arrow_forward
- Consider each of the following events and then figure out how each of these events will affect the aggregate demand curve. a. An increase in the price level will cause a b. An increase in government purchases will cause a c. An increase in state income taxes will cause a d. An increase in interest rates will cause a e. A faster income growth in other countries will cause a the aggregate demand curve. the aggregate demand curve. the aggregate demand curve. the aggregate demand curve. the U.S. aggregate demand curve.arrow_forwardWhich of the following shifts aggregate supply to the right? a. a decline in the price of imported natural resources b. a technological advance c. an older labor force that leaves jobs less frequently d. All of the above are correct.arrow_forwardIf 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 decreasesarrow_forward
- Which of the following statements will not parallel shift the aggregate supply curve? A. A reduction in business taxes. B. A reduction in the price of imported oil. C. An increase in labor productivity. D. A reduction in the general level of prices Please do fast ASAP fastarrow_forwardA sudden crash in the stock market shifts a.the aggregate demand curve. b. the short-run aggregate supply curve, but not the long-run aggregate supply curve. c. the long-run aggregate supply curve, but not the short-run aggregate supply curve. d. both the short-run and the long-run aggregate supply curves.arrow_forwardWhat is the relationship between the price level and the following components of aggregate demand? a. There is (a negative/ no / a positive) relationship between the price level and consumption. b. There is (a negative/no/ a positive) relationship between the price level and investment. c. There is (a negative/no/ a positive) relationship between the price level and government spending. d. There is (a negative/no/ a positive) relationship between the price level and net exports.arrow_forward
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