In the following table, determine how each event affects the position of the long-run aggregate supply (LRAS) curve.Direction of LRAS Curve ShiftThe government allows more immigration of working-age adults who find work.No shift vThis economy's primary source of foreign oil decides to cease exports for political reasons.RightAn investment tax credit increases the rate at which firms acquire machinery andLeftequipment.Grade It NowSave & ContinueContinue without savingrti...docxere to searchhp%23

Long run aggregate supply curve is the ability of an economy to produce goods and services to met…

Direction of LRAS Curve Shift The government allows more immigration of working-age adults who find work. No shift This economy's primary source of foreign oil decides to cease exports for political reasons. Right An investment tax credit increases the rate at which firms acquire machinery and Left equipment.

Direction of LRAS Curve Shift The government allows more immigration of working-age adults who find work. No shift This economy's primary source of foreign oil decides to cease exports for political reasons. Right An investment tax credit increases the rate at which firms acquire machinery and Left equipment.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter22: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 1P

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Many financial analysts and economists eagerly await the press releases for the reports on the home price index and consumer confidence index. What would be the effects of a negative report on both of these? What about a positive report?
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A Moving to another question will save this response. Quèstion 25 AS2 AS AS3 e3 P3 AD Q2 Q, Q3 Real Domestic Output Refer to the graph. If aggregate supply shifts from AS1 to AS2, what will happen to price level and real domestic output? 4 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Paragraph ニv A 12pt Open Sans,sa... v BIUS Price Level !!!
3. The graph below shows the AD-AS model for the US in long-run equilibrium. Label both axes and the following: AD, SRAS, LRAS. Indicate the equilibrium price level is P, and equilibrium level of output is Yo. X Assume that due to an expansion in European economics, US exports to that region increase. A. Show the effects of this change in the graph above. B. What happens to the SR equilibrium price level and level of output (Real GDP)? Label these P₁ and Y₁. C. Initially, what happens to real wages? D. What happens to the unemployment rate? E. Given your answer to parts C and D, how might workers respond? F. Show the effects of the change described in part E in the graph above. Label the new equilibrium price level and level of output as P₂ and Y₂. G. After this transition to the LR equilibrium, what is the level of output (Y₂) as compared to the initial level (Yo)?
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Draw a short-run aggregate supply curve. Label it. As we move up along the short-run aggregate supply curve, O A. potential GDP increases OB. the money wage rate, the prices of other resources, and potential GDP remain constant OC. the money wage rate and the prices of other resources change by the same percentage OD. the real wage rate, the prices of other resources, and potential GDP remain constant 150 140- 130- 120- 110- 100- Click the graph, choose a tool in the palette and follow the instructions to create your graph. 90- Price level (GDP deflator, 2009=100) 12.0 12.5 13.0 13.5 14.0 14.5 Real GDP (trillions of 2009 dollars) >>> Draw only the objects specified in the question. WX 11.5 trend rise in velocity. Evi
The economy has shifted and the quantity of the real GDP supplied has increased. What has potentially happened to aggregate price levels? Potentially the price levels have increased to a higher aggregate price level and if the wages are sticky, businesses have hired more employees as labor has become cheaper. O Potentially the price levels have decreased to a lower aggregate price level and if the wages are sticky, businesses have hired more employees as labor has become cheaper. Potentially the price levels have increased to a higher aggregate price level and if the wages are sticky, businesses have fired some employees as labor has become too expensive.