The shifts and directions of aggregate demand and supply curve when the price level changes and its effect to output and price level. Concept introduction Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year. Aggregate supply : Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Question

Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, a shift in neither curve, or a shift in both curves. If a shift is caused, indicate which curve shifts, and in which direction it shifts. What happens to aggregate output and the price level in each case? The price level changes. Consumer confidence increases. The supply of resources decreases. The wage rate decreases. There is no minimum word requirement for responses. Please label each section of your response with the appropriate number (1, 2, 3, 4). Compare the classical economic theory that was used prior to the Great Depression to the Keynesian theory used after the Great Depression.Your response must be at least 200 words in length.

Answer 1

Question

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Chapter 5, Problem 3.4P

Sub-part

A

To determine

The shifts and directions of aggregate demand and supply curve when the price level changes and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Sub-part

B

To determine

The shifts and directions of aggregate demand and supply curve when the consumer confidence declines and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Sub-part

C

To determine

The shifts and directions of aggregate demand and supply curve when the supply of resources increases and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Sub-part

D

To determine

The shifts and directions of aggregate demand and supply curve when the wage rate increases and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

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Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, a shift in neither curve, or a shift in both curves. If a shift is caused, indicate which curve shifts, and in which direction it shifts. What happens to aggregate output and the price level in each case? The price level changes. Consumer confidence increases. The supply of resources decreases. The wage rate decreases. There is no minimum word requirement for responses. Please label each section of your response with the appropriate number (1, 2, 3, 4). Compare the classical economic theory that was used prior to the Great Depression to the Keynesian theory used after the Great Depression.Your response must be at least 200 words in length.

Determine whether each of the following would cause a shift of the aggregate demand curve, a shift of the aggregate supply curve, a shift in neither curve, or a shift in both curves. If a shift is caused, indicate which curve shifts, and in which direction it shifts. What happens to aggregate output and the price level in each case? label each section of your response with the appropriate number (1, 2, 3, 4). The price level changes. Consumer confidence increases. The supply of resources decreases. The wage rate decreases.

Answer 2

Question

100%

Chapter 5, Problem 3.4P

Sub-part

A

To determine

The shifts and directions of aggregate demand and supply curve when the price level changes and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Sub-part

B

To determine

The shifts and directions of aggregate demand and supply curve when the consumer confidence declines and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Sub-part

C

To determine

The shifts and directions of aggregate demand and supply curve when the supply of resources increases and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Sub-part

D

To determine

The shifts and directions of aggregate demand and supply curve when the wage rate increases and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

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Answer 3

Question

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Chapter 5, Problem 3.4P

Sub-part

A

To determine

The shifts and directions of aggregate demand and supply curve when the price level changes and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Sub-part

B

To determine

The shifts and directions of aggregate demand and supply curve when the consumer confidence declines and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Sub-part

C

To determine

The shifts and directions of aggregate demand and supply curve when the supply of resources increases and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Sub-part

D

To determine

The shifts and directions of aggregate demand and supply curve when the wage rate increases and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Expert Solution & Answer

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Answer 4

Question

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Chapter 5, Problem 3.4P

Sub-part

A

To determine

The shifts and directions of aggregate demand and supply curve when the price level changes and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Sub-part

B

To determine

The shifts and directions of aggregate demand and supply curve when the consumer confidence declines and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Sub-part

C

To determine

The shifts and directions of aggregate demand and supply curve when the supply of resources increases and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Sub-part

D

To determine

The shifts and directions of aggregate demand and supply curve when the wage rate increases and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

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Answer 5

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Answer 6

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Answer 7

Chapter 5, Problem 3.4P

Sub-part

A

To determine

The shifts and directions of aggregate demand and supply curve when the price level changes and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Sub-part

B

To determine

The shifts and directions of aggregate demand and supply curve when the consumer confidence declines and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Sub-part

C

To determine

The shifts and directions of aggregate demand and supply curve when the supply of resources increases and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Sub-part

D

To determine

The shifts and directions of aggregate demand and supply curve when the wage rate increases and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Answer 8

Chapter 5, Problem 3.4P

Sub-part

A

To determine

The shifts and directions of aggregate demand and supply curve when the price level changes and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Answer 9

Chapter 5, Problem 3.4P

Sub-part

A

To determine

The shifts and directions of aggregate demand and supply curve when the price level changes and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Answer 10

Sub-part

B

To determine

The shifts and directions of aggregate demand and supply curve when the consumer confidence declines and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Answer 11

Sub-part

B

To determine

The shifts and directions of aggregate demand and supply curve when the consumer confidence declines and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Answer 12

Sub-part

C

To determine

The shifts and directions of aggregate demand and supply curve when the supply of resources increases and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Answer 13

Sub-part

C

To determine

The shifts and directions of aggregate demand and supply curve when the supply of resources increases and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Answer 14

Sub-part

D

To determine

The shifts and directions of aggregate demand and supply curve when the wage rate increases and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Answer 15

Sub-part

D

To determine

The shifts and directions of aggregate demand and supply curve when the wage rate increases and its effect to output and price level.

Concept introduction

Aggregate demand: Aggregate demand is the demand of the final goods which are produced in the economy in a given year.

Aggregate supply: Aggregate supply curve shows the relationship between the goods supplied by nations' suppliers and nation's overall price level.

Answer 16

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Ch. 5 - Prob. 1.1P Ch. 5 - Prob. 2.2P Ch. 5 - Prob. 3.3P Ch. 5 - Prob. 3.4P Ch. 5 - Prob. 4.5P Ch. 5 - Prob. 4.6P

Solution Summary: The author explains the shifts and directions of aggregate demand and supply curve when the price level changes and its effect on output and price levels.

Chapter 5 Solutions