1. a) How do menu costs and factor prices play a role in making the short...
1.
a) How do menu costs and factor prices play a role in making the
short run aggregate supply curve upward sloping?
b) How does a supply shock influence the short run aggregate supply
curve?
c) What is an expansionary gap?
D) What are the likely consequences of an expansionary gap?
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1.
a) How do menu costs and factor prices play a role in making the
short...
because along it, as prices rise, the money wage The long-run aggregate supply curve is rate...
because along it, as prices rise, the money wage The long-run aggregate supply curve is rate O A. vertical, rises O B. vertical falls O c. upward sloping, falls O D. upward sloping, stays constant When the price lehel rises and simultaneously there is a decrease in real GDP, O A. the natural unemployment rate increases OB. the Fed has increased the discount rate O c. stagflation occurs O D. there is an expansionary gap.
Describe the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve. A. the...
Describe the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve. A. the SRAS curve is horizontal and the LRAS curve is upward sloping B. the SRAS curve is horizontal and the LRAS curve is vertical C. the SRAS curve is vertical and the LRAS curve is horizontal D. the SRAS curve is vertical and the LRAS curve is upward sloping Why is the short-run aggregate supply curve horizontal? A. because output is fixed in the short...
Input costs being slow to change is a factor of: a. short-run aggregate demand curve b....
Input costs being slow to change is a factor of: a. short-run aggregate demand curve b. long-run aggregate demand curve c. short-run aggregate supply curve d. long-run aggregate supply curve
The aggregate supply curve in the very short run is most likely: 1. Upward-sloping because wages...
The aggregate supply curve in the very short run is most likely: 1. Upward-sloping because wages and prices of other inputs do not fully adjust to changes in the price level. 2. Flat because output can be adjusted to a certain degree without a corresponding change in prices. 3. Vertical because wages and prices of other inputs fully adjust to changes in the price level.
Why does the short-run aggregate supply curve slope upward? O A. Profits rise when the prices...
Why does the short-run aggregate supply curve slope upward? O A. Profits rise when the prices of the goods and services firms sell rise more rapidly than the prices they pay for inputs. O B. An increase in market prices results in an increase in quantities supplied, as stated by the law of supply. O C. As the number of workers, machinery, and equipment increase, and technological changes occurs, quantity supplied increases. O D. All of the above cause the...
11. Demonstrate the tax increase using the closed AD-AS model, ceteris paribus, after the initial short-run...
11. Demonstrate the tax increase using the closed AD-AS model, ceteris paribus, after the initial short-run shock (i.e., decrease in wealth), but before the nominal wages and prices are fully flexible. [Note: this is the counterfactual version.] [Sub-questions 11-12 are connected.] After the tax increase, _______ shifts_______. A. the aggregate demand curve; leftward B. the aggregate demand curve; rightward C. the short-run aggregate supply curve; leftward D. the short-run aggregate supply curve; rightward E. the long-run aggregate supply curve; leftward...
1. Which of the following is not a property of the aggregate demand curve? It shows...
1. Which of the following is not a property of the aggregate demand curve? It shows the relationship between the overall price level and level consumption. It shows the price level on the vertical axis and output on the horizontal axis. The aggregate demand curve slopes downward. It shows the relationship between the overall price level and the level of total demand. 2. When the price level increases people: feel more wealthy. have the same real value of assets, regardless...
[8] In Keynesian economics the most important factor determining whether the level of economic activity is...
[8] In Keynesian economics the most important factor determining whether the level of economic activity is growing or shrinking is: A) the multiplier effect. B) government expenditure and tax policies. C) the behavior of nonincome-determined spending. D) the relationship between leakages from and injections into the spending stream. [9] Using the Keynesian approach, if leakages from the spending stream are less than injections, the current level of output is: A) less than the equilibrium level of output, and will increase....
8] In Keynesian economics the most important factor determining whether the level of economic activity is...
8] In Keynesian economics the most important factor determining whether the level of economic activity is growing or shrinking is: A) the multiplier effect. B) government expenditure and tax policies. C) the behavior of nonincome-determined spending. D) the relationship between leakages from and injections into the spending stream. [9] Using the Keynesian approach, if leakages from the spending stream are less than injections, the current level of output is: A) less than the equilibrium level of output, and will increase....
Supply decisions are made within the business sector and are assumed to be motivated by the...
Supply decisions are made within the business sector and are assumed to be motivated by the desire to maximize profits. Aggregate supply (AS) shows the relationship between the quantity supplied of all goods and services and the price level, ceteris paribus. The aggregate supply curve is believed to be upward-sloping in the short run because many input prices are fixed for a particular time period due to contractual agreements. If the cost of production remains constant and the price level...
because along it, as prices rise, the money wage The long-run aggregate supply curve is rate O A. vertical, rises O B. vertical falls O c. upward sloping, falls O D. upward sloping, stays constant When the price lehel rises and simultaneously there is a decrease in real GDP, O A. the natural unemployment rate increases OB. the Fed has increased the discount rate O c. stagflation occurs O D. there is an expansionary gap.
Why does the short-run aggregate supply curve slope upward? O A. Profits rise when the prices of the goods and services firms sell rise more rapidly than the prices they pay for inputs. O B. An increase in market prices results in an increase in quantities supplied, as stated by the law of supply. O C. As the number of workers, machinery, and equipment increase, and technological changes occurs, quantity supplied increases. O D. All of the above cause the...
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