After an unexpected in the price of oil, the long-run adjustment decreases the price level and the unemployment rate as they return to their original levels.
Q: Cost-push inflation occurs when the: aggregates demand curve shifts leftward while the aggregate…
A: Cost pull inflation occurs when the aggregate supply curve shifts leftward while the demand curve is…
Q: In 1986, OPEC countries increased their production of oil. This caused the price level to rise.…
A: Since, oil production has increased, it will tend to have positive effects.
Q: Which of the following statements is correct? a. Inflation and unemployment are negatively…
A: Concepts:Inflation- It is the situation when the power of purchasing of a currency decreases over a…
Q: In the long run, a. the natural rate of unemployment depends primarily on the level of aggregate…
A: Philip’s curve describes the relationship between the unemployment rate and the inflation rate.…
Q: The sticky wage theory of the short-run aggregate supply curve says that if the price level is lower…
A: In sticky wage theory when the price level is lower than expected then the real wage is higher, if…
Q: Starting from long-run equilibrium, what will be the impact of a decrease in aggregate dema It will…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If…
Q: The aggregate supply curve for the long run is: Group of answer choices Represents potential output,…
A: Long-run:- The term "long-run" refers to the amount of time it takes for nominal wages and other…
Q: Suppose the economy is currently in short-run equilibrium at an output below potential level of…
A: A short run competitive equilibrium occurs when the pricing is such that the total quantity the…
Q: In 2006, the economy of Aptonville had an aggregate demand and aggregate supply according to the…
A: Aggregate Demand (AD) is the total demand (dd) for all the goods (commodities) and services in an…
Q: Explain why demand policies can only reduce unemployment below the natural rate in the short-run.
A: In simple words we can say that the demand policies are generally known to be as that policies which…
Q: In the long run, as a result of the sharp increase in saving, the price level , the quantity of…
A: At a given price and particular time, overall demand is defined as cumulative sum of money…
Q: Under what assumptions is the aggregate supply function to be represented as an upw sloping curve…
A: Aggregate supply represents the quantity of output supplied at different price level, considering…
Q: When the aggregate supply curve is price of factors of production is fixed, with little or no upward…
A: Aggregate supply curve represents the total supply of goods and services by all firms in an…
Q: Q35 The positive relationship between short-run aggregate supply and the price level indicates…
A: Aggregate supply curve is related to price and output. As money wage rate increases, aggregate…
Q: The aggregate supply curve is probably better thought of as a price/output response curve. Select…
A: Aggregate supply refers to the total value of goods and services available for purchase at a…
Q: If policymakers decrease aggregate demand, then in the short run the price level Answer falls and…
A: Aggregate demand is the sum of the demand for current output by each of the buying sectors of the…
Q: The following events have occurred in the history of the United States: A deep recession hits the…
A: Deep recession will decline the economic activities in an economy which put negative impact on…
Q: If for whatever reason, in the short run output is above potential output, over time, as prices…
A: The curve that depicts quantities of goods being demanded by individuals at various levels of price…
Q: Which of the following must be true in the long run? Production increases when prices increase. An…
A: In the long run, the price of the goods and the wages are flexible in the market, that is why the…
Q: An increase in price expectations shifts the long-run aggregate-supply curve to the left True/False
A: # While making the final purchases, we often has to keep some reference points. Such reference…
Q: "In the 'Intermediate Run' an increase in the real interest rate leads to a reduction in Investment…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Which of the following is most commonly used to monitor short-run changes in economic activity?…
A: Economic activity refers to those activity which leads to production in the economy.
Q: Long run macroeconomic equilibrium occurs when a. aggregate demand equals short run…
A: The potential output refers to the output level that gets produced when all resources of the economy…
Q: A decrease in the nominal wage will cause the aggregate supply curve to a. become steeper. . b.…
A: When there is a change in price of good, it causes movement along the demand curve or supply curve.…
Q: Using a separate set of AS-AD diagrams for each of the following scenarios, explain what is likely…
A: The AD-AS (aggregate demand-aggregate supply) model depicts however value is set and the way worth…
Q: The aggregate supply curve (short run) Multiple Choice presumes that changes in wages and other…
A: In an economy, aggregate supply curve is the depiction of total output available to supply in the…
Q: Which of the following would cause prices to fall and real GDP to rise in the short run? A) an…
A: The Gross Domestic Product (GDP) is that the total of all worth additional in an exceedingly given…
Q: *How are the following related to each other? a. the long-run equilibrium rate of output b. the…
A: Introduction Potential GDP: it is the quantity of real GDP when there is full employment of labor .…
Q: Consider the Canadian economy starting at long-run equilibrium. Evaluate the following statement and…
A: In an economy, government requires from new firm to adopt green power sources for the production of…
Q: A4
A: Aggregate Supply curve refers to the curve that shows the real output that all firms and producers…
Q: If the price level rises above what was expected and nominal wages are fixed, then production…
A: The sticky wage theory gives an economic explanation for changes in wages and supply of labour. It…
Q: Create a graph with an aggregate demand curve and an aggregate supply curve in the short-run. Use…
A: The aggregate demand curve is a negatively sloped curve, which expresses the relationship between…
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: Suppose the full-employment level of real output (Q) is $250 and the price level (P) is initially…
A: (a) When the price level suddenly rising from 100 to 125 due to an increase in aggregate demand,…
Q: The Great Depression showed that the short-run aggregate supply curve and the aggregate demand curve…
A: Prior to Great Depression the economy was working on Classical economic theory that assumes the…
Q: Economics The short-run equilibrium is the combination of r and Y that simultaneously satisfies the…
A: In an economy, the general equilibrium is explained by the situation when all the markets are…
Q: Suppose that the United States is at full employment. Explain the effect of each of the following…
A: Part A → When the union-wage settlement pushes an upward pressure in the nominal wages by 10%, this…
Q: Reduction in the levels of structural unemployment have the effect of A. Reducing the level of…
A: The unemployment refers to the situation when people who are able to work and also willing to work…
Q: “Members of Congress are interested in increasing the minimum wage from its current rate of $7.25 an…
A: Low-skilled workers generally find it difficult to find a job. Their value is very less and they…
Q: The following events have occurred in the history of the United States: A deep recession hits the…
A: Meaning of Inflation: The term inflation refers to the situation under which there is an excessive…
Q: Suppose there is a hurricane that causes oil rigs and refineries in and around the Gulf of Mexico to…
A: Whenever there is a decline in the supply, it is termed a negative supply shock and whenever there…
Q: What is the reason behind why the SRAS curve is upward sloping? There are few unutilised…
A: The short-run aggregate supply curve (SRAS) depicts the positive relationship between output and…
Q: The data also indicate that wages tend to be downward rigid. This means that a. wage declines…
A: Sticky wage theory states that wages are sticky moving down which means they tend to be downward…
Q: Compare the effects of a change in money supply and technology in a model with fully sticky prices…
A: When applied to price, it suggests that the traders (or buyers) of the explicit product are…
Q: If the actual price level exceeds the expected price level reflected in long term contracts, real…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Part 2 Answer questions a through F on the basis of the following graph: e. If the actual price…
A: e) Based on the graph, If the actual price level equals the expected price level reflected in long…
Q: The vertical long-run aggregate supply curve satisfies the elassical dichotomy because the natural…
A: Aggregate supply curve shows relationship between price and real output supplied.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- What happens in the labor market when the following event occurs? Suppose that the number of jobs in the fishing industry decreases but the number of Jobs in the travel industry increases. Initially, O A. there is a shortage of workers in both sectors B. the unemployment rate does not change O C. cyclical unemployment increases O D. structural unemployment increasesEconomists find in a business cycle, a peak represents the end of, and a trough represents the end of Select one: a. an expansion; a recession O b. a depression; an expansion O c. a recession; an expansion O d. a trough; a peakBased on our understanding of the labor market model, an increase in oil price will make, Select one: O a. a rise in natural rate of output O b. a reduction in the equilibrium unemployment rate O c.a rise in the real wage O d. a rise in the aggregate price
- IM IN %24 3. O Completed 15 out of 20 Submit All Question 7 of 20 Suppose that employment processes change so that more human capital is required for a given task. The əsoddng for human capital will shift right, and the rate of return will O demand; increase supply; decrease O demand; decrease O supply; increase Show all 5:20 PM search 78°F ENG 12/9/2021 ins prt sc delete end 61 144 114 04 米 backspace lock 4. home enter 1 shift end 1413A. only if that person has worked full time over the previous week. B. if that person holds either a part-time or full-time paid job. OC. if that person holds a paid job or may not be working but has looked for work in the previous week O D. when a person has worked at the same job for one year continuously Potential workers are classified as being unemployed when O A. they want a full-time job and instead have a part-time job or are not working at all. O B. they do not have a paid job, have looked for work in the previous 4 weeks and aro available for work O C. they do not have a paid job, have looked for work in the previous 4 months and are available for work O D. they do not have a paid job and are currently not available for work The equation for the unemployment rate is defined as O A Unemployed 100% x Potential workers OB. Unemployed 100% x Labor force Employed 100% x Potential workers O D Employed 100% x Labor force O O O OBased on our understanding of the labor market model, the new labor law in China which increases the protection of workers to be laid off would lead to Select one: a. an increase in the equilibrium real wage O b. an increase in the natural rate of unemployment O c.a reduction in the natural rate of unemployment O d. a reduction in the equilibrium real wage
- O E. 10 million. Diane lost her job and immediately started looking for another job. As a result the Lütfen birini seçin: O A. unemployment rate remains constant. O B. labor force decreases. O C. unemployment rate increases. O D. labor force remains constant O E. labor force increases. SONRAKTime left 1:10:54 If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed and 150 million employed, the unemployment rate is Select one: O a. 6.7% O b. 6.25% O.c. 23.3% O d. 26.7% Next page this page nere to search acerReal wage Cabor supply Labor (hours) Preferences Time preference: 100 O A flattening of the labor supply curve due to a higher labor supply elasticity OA steepening of the labor supply curve due to a lower labor supply elasticity Smoothing: 100 Will to substitute: 105 Consumption weight: 10 Prices and assets Initial assets: 100 Wage rate: 100 Interest rate: 100 Price level: 100 Inflation rate: 100 The following question will be about the labor supply curve. Remember, the labor supply curve plots hours worked on the x-axis and the real wage on the y-axis. Which of the following would happen as a result of an increase in households' willingness to substitute between consumption and leisure? O An upward movement along the curve and an increase in the log of hours worked O A downward movement along the curve and a decrease in the amount of hours worked O None of these
- Which of the following is a limitation of the unemployment rate? O a. It does not account for workers that become discouraged and stop looking for a job. Ob. It fails to reflect underemployment. Oc it does not account for frictional unemployment. O d. Both (a) and (b) are correct.In the economy there has been an increase in the labor force participation rate. We can expect the equilibrium wage to number of people employed to and the O decrease : increase O decrease : decrease O increase : increase O increase: decreaseBetween January 20JO and Janual'}• 2016, U.S.employment increased by 12.1 million workers, butthe number ol unemployed workers declined by mlly7.3 million. How are these numbers ronsistent witheach other? V.'hy might one expect a reduction in thenumber of people rounted as unemployed lo be smaUerthan the increase in the number of people employed?