Principles of Economics (Second Edition)
2nd Edition
ISBN: 9780393614077
Author: coppock, Lee; Mateer, Dirk
Publisher: W. W. Norton & Company
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Chapter 26, Problem 3QFR
To determine
To explain:
The difference between the factors that cause shift in the long run
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Explain the factors that cause the Aggregate Demand curve to be downward sloping left to right.
Changes in what four variables will shift the long run aggregate supply curve?
Are there many short-run aggregate supply curves and long-run aggregate supply curves? Why or Why not?
Chapter 26 Solutions
Principles of Economics (Second Edition)
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- What factors shift the short-run aggregate supply curve?Do any of these factors shift the long-run aggregate supply curve? Why?arrow_forwardWhat kind of change would happen to aggregate demand, aggregate supply, and real GDP. if foreign countries purchase an unusually large number of U. S. manufactured passenger and military airplanes.arrow_forwardWhat happens to the output and price level if aggregate demand and aggregate supply curves shift in the same direction?arrow_forward
- will an increase in productivity affect the aggregate supply curve and the aggregate demand curve?arrow_forwardWhat relationship does the short-run aggregate supply curve represent?arrow_forwardThe following table lists several determinants of aggregate supply. Fill in the table by indicating the changes in the determinants necessary to increase aggregate supply. Determinant Prices of Nonlabor Inputs Productivity Nominal Wage Rate Change Needed to Increase Short-Run Aggregate Supplyarrow_forward
- The following graph shows the short-run and long-run aggregate supply curves (SRAS and LRAS) for an economy. Suppose there is a technological improvement that allows firms to reduce their costs of production permanently. Drag one or both of the curves on the graph to illustrate the long-term effects of this change. If you don't believe there will be any long-term effects, leave the curves where they are. 240 LRAS SRAS 200 SRAS 160 LRAS 120 80 40 6 12 18 24 REAL GDP (Trillions of dollars) Assuming aggregate demand is not affected by the technological improvement, the long-run effect of this v supply shock is v in aggregate output and v in the price level. PRICE LEVELarrow_forwardare my answers correct?arrow_forwardWhat are the major factors causing a shift in aggregate demand (inward or outward)? What are the major factors that will affect short-run aggregate supply? Long-run aggregate supply?arrow_forward
- Suppose that an economy wants to boost available labor hours in order to increase aggregate supply. What is the best way to accomplish this?arrow_forwardThe following event has occurred in the history of the United States: The world oil price rises sharply. Explain for event whether it changes short-run aggregate supply, long-run aggregate supply, aggregate demand, or some combination of them.arrow_forwardHow do changes in expectations, fiscal policy and monetary policy, and the world economy change aggregate demand and the aggregate demand curve?arrow_forward
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