In the short run, policy that changes aggregate demand changes Answer both unemployment and the price level. neither unemployment nor the price level. only unemployment. only the price level.
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Q: long-run aggregate supply curve
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In the short run, policy that changes aggregate demand changes
Answer
both
neither unemployment nor the price level.
only unemployment.
only the price level.
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- During recessions, output a. rises, and unemployment falls b. falls, and unemployment rises c. and unemployment both rise d. and unemployment both falla. What is the theorized relationship between the unemployment rate and the minimum wage in the static model of the labour market? b. How should the unemployment rate respond to a constant minimum wage in the static model of the labour market?Suppose that aggregate supply deceases while aggregate demand held constant. a. What happens to the price level? b. What happens to national output?
- Suppose the world price of steel falls substantially. The demand for labor among steel-producing firms in Pennsylvania willdecrease . The demand for labor among automobile-producing firms in Michigan, for which steel is an input, willincrease . The temporary unemployment resulting from such sectoral shifts in the economy is best described asfrictional unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply.Cyclical unemployment is caused by the recession to expansion. Osupply; moving to the right Odemand; moving to the right Odemand; moving to the left supply; moving to the left for labor during an economy moving fromWhat is the effect of an increase in the price level when the money wage rate remains unchanged? A. Aggregate supply increases. B. Potential GDP increases. C. The quantity of real GDP supplied increases. D. Resource prices increase by the same percentage as the increase in the price level.
- A looseningloosening of the labor market will cause A. the aggregate supply curve to shift down. B. the aggregate supply curve to shift up.the aggregate supply curve to shift up. C.the aggregate demand curve to shift left.the aggregate demand curve to shift left. D.the aggregate demand curve to shift right. When the labor market is? tight, A. wages? fall, and the aggregate supply curve shifts down. B.wages? rise, and the aggregate supply curve shifts down. C.wages? rise, and the aggregate supply curve shifts up. D.wages? fall, and the aggregate supply curve shifts up.An unexpected increase in aggregate demand causes A. the unemployment rate to fall, with no change in the price level. B. simultaneously the price level to fall and the unemployment rate to fall. C. simultaneously the price level to rise and the unemployment rate to fall. D. the price level to rise, but the duration of unemployment will remain constant, so the unemployment rate remains constant.Explain how a rise in Mt, V, and Yt afects the price level according to thequantity theory.
- The long-run aggregate supply curve shows that by itself a permanent change in aggregate demand would lead to a long-run change Answer in the price level and output. in the price level, but not output. in output, but not the price level. in neither the price level nor output.Self-correcting mechanism reveals that Group of answer choicesreal wages will increase if there is an increase in price.nominal wages will increase if there is recessionary gap.nominal wages will fall if there is inflationary gap.in the long run economy will be in equilibrium at potential GDP.Assume that the economy is in a full employment equilibrium. There is an increase in consumer sentiment. The following combination of events are likely to occur Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a output rises, prices fall b output falls, prices rise. output rises, prices rise d output falls, prices fall