The long run in macroeconomics is the period of time in which prices do not change or do not change very much. O True O False

Q: Consider the AS/AD model. What would happen if resources prices fall? O AD shifts right OSRAS shifts…

A: Aggregate supply shows a poutine relationship between price level and real output.

Q: Let us define "peak oil" as a point in time where the quantity of oil extracted and consumed (let's…

A: Decline in production will decrease the supply of oil, shifting supply curve leftward. This will…

Q: Output in the short run is determined by which of the following factors when an economy operates at…

A: When the economy operates at full employment, the supply will not be able to affect the output.

Q: Which of the following economic statements would a Keynesian economist tend to support? Oa) The…

A: Keynesian economics is a macroeconomic economic theory that examines the overall amount of spending…

Q: Identify which curve on the previous graph corresponds to each description in the following table.…

A: "Aggregate demand curve depicts the total amount of final commodities demanded in a country at a…

Q: The period in the business cycde from a peak to a trough is a Select one: O a slump. O b. All of the…

A: When there is regular fluctuation in the business cycle can be seen that is if there are ups and…

Q: If an economy is initially in long-run equilibrium and then experiences a negative demand shock,…

A: A negative demand shock refers to an occurrence of unexpected situation which leads to a fall in the…

Q: Suppose the economy is in​ long-run equilibrium. If there is a sharp increase in the price of a…

A: In the free economy, the equilibrium price level and equilibrium GDP level is determined by the…

Q: What is the effect of a rise in the price of oil on the U.S. economy? How does the economy return to…

A: The AD-AS model analyses the macroeconomic phenomenon of the economy. The intersection point of the…

Q: Question 24 One of the most important views expressed by classical macroeconomisls was thal O A.…

A: Classical economists are the people who have their different perspective to explain a market than…

Q: ament Score: 37.6% Resources Lx Give Up? Hint on 4 of 15 <. Suppose that the dynamic aggregate…

A: The aggregate demand curve refers to the total demand for all goods and services in an economy at…

Q: A recession runs from the O A. peak of the business cycle to its trough. O B. expansion of a…

A: The fluctuations of gross domestic product (GDP) around its long-term growth pattern are known as…

Q: Productivity relates to O working longer over time. O working harder over time. O producing the same…

A: Note: You have uploaded multiple questions at a time. Hence, we shall answer only the first one for…

Q: 37.6% R Give Up? O Hint ment Score: Resources Chec on 5 of 15 <. In 2013, Prussia's aggregate demand…

A:

Q: During the recession phase of the business cycle, O production decreases. O prices increase. O…

A: Recession is a period when economic activity is falling and there is a fall in aggregate spending in…

Q: In the dynamic model of AD-AS in the diagram to the right, if the economy is at point A in year 1…

A: In AD/ AS graph, a  rightward shift or increase in Aggregate demand will make output to rise along…

Q: Keynesian economists believe that prolonged recessions are possible because Oa) prices are flexible…

A: Correct Answer (e) Prices are sticky and do not adjust quickly during economic downturns Because…

Q: In 2013, Prussia's aggregate demand curve was determined by the equation M + 1-4% A change in…

A: The quantity theory of money:The quantity theory of money equation can be written as follows:

Q: The following graphs show the state of an economy that is currently in Tong-run equilibrium. The…

A: Long Run Aggregate Supply function depicts the changes in output as a function of changes in prices…

Q: On a short-run aggregate supply curve, wages tend to be sticky at levels of aggregate output and…

A: Short run refers to the time period where some of the factors of production remain same throughout…

Q: If a war breaks out and the government spends additional money on defense this will cause which of…

A: Aggregate demand shows a negative relationship between price and output.

Q: When decision-makers have time to fully adjust to changes in the overall price level, we refer to…

A: In Economics, Long-run and Short-run are the concepts related to the market where the equilibrimity…

Q: Consider the short-run aggregate supply curves in the graph at right. A movement from point A to…

A: The movement along the curve is caused by change in price level while the shift in the curve is…

Q: Which of the following would likely be studied by a macroeconomist rather than a microeconomist? O…

A: When studying macroeconomics concepts, it can be said that these concepts have a significant impact…

Q: Why does an inflationary output gap lead to increased price levels? O a. Demand is too high O b.…

A: An inflationary gap is defined as the amount by which the actual GDP of the economy exceeds the…

Q: The economic shutdown after the Covid-19, there was a decrease in Aggregate Demand (AD) and a…

A: Aggregate demand and aggregate supply model helps in determining total supply or demand of an…

Q: If long-range aggregate supply (LRAS) shifts right, we know for certain that there has been O a) an…

A: Long run aggregate supply is the vertical line which shows that economy can't produce further the…

Q: "Suppose that in a closed economy in which Y=Yn, with Yn-5000, C=500+ 0.5(Y-T) and G=1000 and T=1000…

A: The Medium Run is a 12-year period during which the economy's capital stock progressively adapts to…

Q: If prompted to describe fundamental beliefs about the economy, a Keynesian economist would state…

A: Keynesian economics refers to the different macroeconomic theories and models that explain how…

Q: me that aggregate can be xpressed by the following function: W = 55 - 3Q, hile the aggregate supply…

A: The equilibrium market wage rate is at the intersection of the supply and demand for labour. Here,…

Q: According to the Keynesian model of macroeconomic equilibrium, a decrease in aggregate demand Select…

A: There are three Macroeconomics theories: Keynesian Economics Marxian Economics Neoclassical…

Q: in their businesses. This will cause the aggregate demand curve to: Shift right O Stay the same O…

A: The aggregate demand is the sum total of entire demand of goods and services in the economy.

Q: LRAS 140 130 SRAS 120 110 100 90 80 AD 70 60 60 65 70 75 80 85 90 95 100 OUTPUT Given the economic…

A: Short-run equilibrium occurs when aggregate demand equates short-run supply curve. And long-run…

Q: Which of the following could potentially cause a recession? O AD increases, and wages are sticky. AD…

A: Recession is a period when real GDP is decreasing.

Q: A) Distinguish between the short run and the long run as they relate to macroeconomics. Why is the…

A: Short-run in macroeconomics Long-run in economics Wages and prices are stick/inflexible…

Q: In the long- run, the level of output is independent of the price level * O True False

A: Output refers to the quantity of goods and services produced by an individual, firm, or country in a…

Q: 3: Consider a baseline long run equilibrium where output is 22 trillion dollars, and the price level…

A: Underemployment equilibrium depicts a state in an economy where unemployment is tirelessly higher…

Q: AS' AS Price Level P2 P1 AD Y2 Y1 Real National Income The graph shows the effects of a significant…

A: When there is an increase in oil prices, the cost of production increases. So sellers will be less…

Q: In 2014, a devastating typhoon hit the Philippines, destroying roads and buildings, and killing…

A: The value of all goods and services generated by an economy in a very given year is reflected in…

Q: Prepare a scratch paper in order to solve the following qu ions. The short run aggregate supply…

A: The short run aggregate supply curve shifts leftward when costs of production increases - TRUE…

Q: The trend of the economy is Select one: O a. the short run production capacity of an economy. O b.…

A: Answer is given below

Q: A technological advance leads to a shift in O a) both SRAS and LRAS. O b) only aggregate demand…

A: A technology advancement leads to a shift in Correct Answer: Option (a) both SRAS and LRAS This is…

Q: Most economists reason that an economy adjusts to inflationary and recessionary gaps slowly because…

A: Inflationary gap occurs when the actual GDP is above the potential level. Recessionary gap occurs…

Q: Consider the nature of macroeconomic equilibrium. If, at a particular price level, aggregate output…

A: Economic equilibrium is the combination of economic variables (quantity and price) toward those…

Q: Question 6 According to the Real Business Cycle, an increase in government spending O Shifts the…

A: The real business cycle theory is a new classical macroeconomic theory that advocates that economic…