A long-run equilibrium occurs when aggregate demand and aggregate supply are in equilibrium ____ a) below potential output b) at potential output c) above potential output d) at any level of output
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A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 1)Potential output is the same as long-run aggregate supply. Select one: True False
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- aggregate demand for coffee is D(p) = 10 - (3/4)p and the aggregate supply S(p) = 5p then what is the equilibrium in the market for coffee?When does macroeconomic equilibrium occur? Multiple Choice When exports equal imports. When the aggregate supply equals the long-run Aggregate Supply When the aggregate demand equals the long-run Aggregate Supply. When the aggregate quantity demanded is equal to the aggregate quantity supplied.Your company sells wristwatches in three separate markets: China, Japan and Korea. The demand curves are 9c = 50 9j = 75 - - qk 100 4 2 Pc P₁ · Pk. a) Calculate and plot the inverse demand curve for each market. b) Calculate your aggregate demand curve. c) Calculate and plot your inverse aggregate demand curve.
- If aggregate supply is vertical, then which of the following statements must be true? Aggregate demand does not affect the quantity of output. Inflation creates greater social benefits. Inflation will accompany any rise in output. Aggregate demand does not cause inflationary changes in price level.1)Potential output is the same as long-run aggregate supply. Select one: True False 2)An increase in the price level will cause a decrease in the aggregate amount of output supplied. Select one: True FalseIn the long-run, aggregate supply is a horizontal line at the long-run price level people can afford. True False One reason for why the aggregate demand curve slopes down is the wealth effect, which means that a higher price level leads to lower real wealth and, thereby, reduces the level of consumption. True False
- An increase in the price level causes the aggregate supply curve to shift to another supply schedule. True or FalseAssume that the United States economy is currently in a recession in a short-run equilibrium. Draw a correctly labeled graph of aggregate demand and aggregate supply in the recession and show each of the following. The long-run equilibrium output, labeled YfA decrease in the availability of an important major resource such as oil shifts aggregate supply left. True or False
- Suppose the economy is in a long-run equilibrium a)Draw a diagram to illustrate the state of the economy . Be sure to show aggregate demand, short-run aggregate supply, and long-run aggregate supply. b) The federal government increases spending on national defense. c) A technological improvement raises productivityWhat kind of change would happen to aggregate demand, aggregate supply, and real GDP. if foreign countries purchase an unusually large number of U. S. manufactured passenger and military airplanes.In which of the following cases will the effect on equilibrium output be indeterminate (i.e., depend on the magnitudes of the shifts in supply and demand)? Demand remains constant and supply increases Demand increases and supply increases Demand decreases and supply increases Demand decreases and supply decreases