Suppose that political instability in the Middle East interrupts the supply of oil. The and prices aggregate demand; left; decreases; decrease short-run aggregate supply; right; increases; decrease aggregate demand; right; increases; increase short-run aggregate supply; left; decreases; increase curve shifts output
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- What would be the effect of an unexpected increase in the price of oil on a graph showing aggregate demand and short-run aggregate supply that is initially in equilibrium? The effect of an unexpected increase in the price of oil will be for the A. aggregate demand curve to shift down. B. aggregate demand curve to shift up. C. short-run aggregate supply curve to shift up. D. short-run aggregate supply curve to shift down. The new equilibrium will be where A. the new short-run aggregate supply curve interects the original aggregate demand curve. B. the original short-run aggregate supply curve interects the original aggregate demand curve. C. the new short-run aggregate supply curve interects the original short-run aggregate supply curve. D. the new short-run aggregate supply curve interects a new aggregate demand curve.Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment. Show the short-run effect of this optimism on the aggregate-demand curve. Price Level LRAS Quantity of Output AS₂2 AS, The price level has risen. Wages are not sticky. AD₂ AD₁ Prices are sticky. People have misperceptions about the price level. Aggregate Demand Aggregate Supply LRAS Which of the following reasons could explain why the aggregate quantity of output supplied changes? Check all that apply. ?Which of the following will increase the Aggregate Demand curve or shift it to the right? The government passes a big infrastructure improvement spending bill O Interest rates rise The raises personal income taxes The U.S. population experiences a significant contraction in population, decreasing the number of people working and consuming. Question 2 Which of the following will decrease the aggregate supply curve or shift it to the left? New international sanctions on Iranian oil raise the price of oil globally and oil is an input in production of many goods and services A 10 percent across the board reduction in personal income tax rates Business taxes fall A new networking technology increases productivity all over the economy
- Europe and Aisa both fall into deep economic recessions. What impact will this have on the U.S. aggregate demand? A. None B. U.S. aggregate demand shifts will be offset by aggregate supply shifts C. U.S. aggregate demand will decrease D. The U.S. aggregate demand curve will shift to the rightA decrease in the expected price level shifts only the long-run aggregate supply curve right. only the short-run aggregate supply curve right. both the short-run and the long-run aggregate supply curve right. Neither the short-run nor the long-run aggregate supply curve right.A change in which of the following would shift the short-run aggregate-supply curve but not the long-run aggregate-supply curve? a)the labor force b)the expected price level c)the capital stock d)the state of technology
- In March 2020, as the Covid-19 recession hit the world, consumers became pessimistic about their future incomes. How did this increased pessimism affect the aggregate demand curve in the year 2020? Group of answer choices This will shift the aggregate demand curve to the right. This will move the economy down along a stationary aggregate demand curve. This will move the economy up along a stationary aggregate demand curve. This will shift the aggregate demand curve to the left.The effects of a higher than expected price level are shown by Answer shifting the short-run aggregate supply curve right. shifting the short-run aggregate supply curve left. moving to the right along a given aggregate supply curve. moving to the left along a given aggregate supply curve. Question 27 A decrease in the expected price level shifts Answer only the long-run aggregate supply curve right. only the short-run aggregate supply curve right. both the short-run and the long-run aggregate supply curve right. Neither the short-run nor the long-run aggregate supply curve right.Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment. a. Draw an aggregate-demand/aggregate-supply diagram to show the short-run effect of this optimism on the economy. Label the new levels of prices and real output. Explain in words why the aggregate quantity of output supplied changes. b. Now use the diagram from part (a) to show the new long-run equilibrium of the economy. (For now, assume there is no change in the long run aggregate-supply curve.) Explain in words why the aggregate quantity of output demanded changes between the short run and the long run. c. How might the investment boom affect the long run aggregate-supply curve? Explain Plaese mam/sir give me answer in deatail as soon as possible please
- Suppose firms become very optimistic about future business conditions and invest heavily in new capital equipment. a. Draw an aggregate-demand/aggregate-supply diagram to show the short-run effect of this optimism on the economy. Label the new levels of prices and real output. Explain in words why the aggregate quantity of output supplied changes. b. Now use the diagram from part (a) to show the new long-run equilibrium of the economy. (For now, assume there is no change in the long run aggregate-supply curve.) Explain in words why the aggregate quantity of output demanded changes between the short run and the long run. c. How might the investment boom affect the long run aggregate-supply curve? ExplainIn 2013, the economy of Boonton had an aggregate demand and aggregate supply according to the following schedule: Price Level Aggregate Demand Short-Run Aggregate Supply Long-Run Aggregate Supply 80 $1405 $1075 $1365 90 $1370 $1150 $1365 100 $1335 $1225 $1365 110 $1300 $1300 $1365 120 $1265 $1375 $1365 130 $1230 $1450 $1365 140 $1195 $1525 $1365 What was Boonton’s long-run equilibrium output in 2013?Aggregate Supply, and a New Equilibrium How will each of the following likely change the aggregate supply curve? Drag and drop options on the right-hand side and submit. For keyboard navigation... SHOW MORE ✓ Increase in the labor force. Increase in capital. Increase in the cost of raw materials. 7/20 answered Decrease in costs created by regulations. Increase in unemployment. = E = = = The aggregate supply curve shifts to the right. The aggregate supply curve shifts to the right. The aggregate supply curve shifts to the right. The aggregate supply curve does not move but there is movement along the curve. The aggregate supply curve shifts to the left. The aggregate supply curve shifts to the left. The aggregate supply curve does not move but there is movement along the curve.
