Price Level P₁ AD₁ AD₂ AS Q₁ Q2 Q3 Real Domestic Output Refer to the figure above. A shift from AD 1 shifts to AD 2 would be consistent with what economic event in U.S. history? O Demand-pull inflation in the late 1960s Cost-push inflation in the mid-1970s O Full-employment in the late 1990s Recession in 2007-09

Price Level P₁ AD₁ AD₂ AS Q₁ Q2 Q3 Real Domestic Output Refer to the figure above. A shift from AD 1 shifts to AD 2 would be consistent with what economic event in U.S. history? O Demand-pull inflation in the late 1960s Cost-push inflation in the mid-1970s O Full-employment in the late 1990s Recession in 2007-09

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 30RQ: Name some factors that could cause AD to shift, and say whether they would shift AD to the tight or...

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Suppose Chino is a closed economy. A large portion of the work force has joint astrong labor union. As such, the nominal wages of most workers are downwardrigid.Suppose most households lose their wealth in a recent clash of the stock market.How would the price and output level of Chino be affected in the short run?Explain by using the AD-AS model. Particularly, use the sticky-wage model ofaggregate supply to explain the magnitude of the effects on price and output.
Suppose that inflation increases from Year #1 to Year#2 without growth. Which of the following graphs correctly shows this situation? (Note: Year #2 positions are shown with dark blue lines.) Price Level Price Level a Ps 0 1 LRAS QN Q₁ LRAS ON 0₁ A) Graph A B) Graph B C) Graph C D) Graph D SRAS SRAS UI SRAS, AD, (M-$800 billion; V - 3) MTD AD₂ (M-$820 billion; V = 3) SRAS, (c) MVT Real GDP AD₂ (M-$800 billion; V - 4) AD, (M-$800 billion; V - 3) Real GDP Price Level Price Level Qa 0 ON P₁ O -- 1 1 0₁ ON 2 -=-= LRAS 1 T LRAS 6 ở SRAS, SRAS₂ AD, (M-$800 billion; V-3) (b) AD₂ (M-$780 billion; V- 3) SRAS1 MIV SRAS2 (d) MV↓ Real GDP AD, (M-$800 billion; V-3) AD₂ (M-$900 billion; V=2) Real GDP
Price Level 0 AS₁ a ASO b c Real GDP Refer to the figure above. If aggregate supply is AS, and aggregate demand is ADo, then: a surplus of real output of gh yould f represents a price level that would result in a surplus of real output of ac f represents a price level that would result in a shortage of real output of ac f represents a price level that would result in a surplus of real output of a at any price level above g. a shortage of real output would occur occur
Let's assume that the economy of a country is experiencing sticky wages and sticky prices. One of these four answers describes what happens to the economy in the immediate term after a reduction in AD. Which one? Price $100 $70 250 900 1250 Quantity S D₁ Do O None of the other answers O The economy will remain at the original equilibrium levels of price and output. O The price will drop to $70 and the equilibrium quantity will be $900. O The economy will produce at the original equilibrium price, but quantity demanded will drop, creating a surplus of 1,000 units.
2. Show a AD-AS graph inflation in the short run and the shift in the SAS necessary to eliminate it.
AS' AS Price Level P2 P1 AD Real National Income Y2 Y1 8. The graph above reflects a significant increase in world oil prices. What will the impact on aggregate supply most likely lead to? (A) an increase in economic growth (B) an increase in input prices C. a decrease in the natural unemployment rate (D) less inflationary pressure
Price Level AS O a b c ASO Real GDP Refer to the figure above. If aggregate supply is AS, and aggregate demand is ADo, then: a surplus of real output of gh would frepresents a price level that would result in a surplus of real output of ac f represents a price level that would result in a shortage of real output of ac f represents a price level that would result in a surplus of real output of a at any price level above g. a shortage of real output would occur occur
What is the relationship in ADAS between oil price and inflation and also the unemployment rate? Given that Oil prices keep increasing The consumer price index keeps increasing The unemployment rate keeps decreasing
Price Level 0 A B Real GDP Comparing points A and B on this graph, which of the following is true? O At point B, there would be less employment and higher unemployment than at point A. O At point B, there would be a lower wage than at point A. O At point B, there is a higher price level that increases the quantity of real GDP supplied. O At point A, there is greater pressure on the price level and inflation than at point B. O At point A, with a lower wage rate, aggregate supply has decreased compared to point B.
Which of the following is incorrect about the Keynesian model shown below? Price Level P₁ AD₁ E₁ Y₁ Real GDP SRAS AD E₁ Yp
Consider the AD/AS model below with a constant rate of inflation. No exogenous AD or AS shocks are occurring. Price Level P3 2 Po 0 FIGURE 29-1 Y" E3 E2 E1 Eo Real GDP AS3 AS2 AS1 ASO AD3 AD2 AD1 ADO Select one: O a an annual shift upward of the AS curve by 3%. b. an annual increase in the inflation rate of 3%. Oc. an annual shift upward of the AD curve by 3%. d. an annual increase in the equilibrium price level of 3%. Oe. Not applicable. The diagram shows the price level, not the inflation Refer to Figure 29-1. A constant rate of inflation of 3% is portrayed in an AD/AS diagram like this one as
Explain why the wages in an economy are downward rigid/sticky but not upward sticky. How does this rigidity/stickiness help to explain why the government is more likely to try to stabilize the during a recession than during an expanston. As a rough expectation, your answer should be 200-500 words (there is no formal limit). economy EFocus Your (`ynress MQuntain aT7 English (Canada) porenly étv APR 7