Economics Chapter 13 Flashcards
The long-run aggregate supply curve is vertical because in the long run, A. changes in the price level affect potential GDP via other variables, such as the size of the labor force, capital stock, and technology B. changes in the size of the labor force, capital stock and technology affect the price level but not potential GDP C. the price level does not change, but potential GDP …
ECO2201: Week 14 Quiz Flashcards | Quizlet
Study with Quizlet and memorize flashcards containing terms like North American and the European Union have about _____% of the world's population and their combined economic statistics show that they produce and consume about _____% of the world's GDP. a.16, 16 b.9, 70 c.80, 70 d.70, 16, In _____, firms and workers often build upon or copy technologies and …
Exam 2 Flashcards
Study with Quizlet and memorize flashcards containing terms like It is found that when the disposable income of Elvania increases by $100 billion, consumption spending increases by $70 billion. In Elvania, the marginal propensity to consume is, The rational expectations approach postulates two aggregate supply curves:, _____ predicted that …
ECO 150- QUIZ 8 Flashcards | Quizlet
Aggregate Supply decreases when wages rise. From 1990 to 2004, among developed countries, a 1 percentage point increase in productivity growth was associated with increased per capita GDP growth of
Macroeconomics
The long-run aggregate supply curve shifts right at the same time as. wages increase. ... B. rise because there is a decrease in the short run aggregate supply in these countries. ... D. be unchanged because although people in the less developed nations buy more goods, ...
Econ Midterm 3 Flashcards
Study with Quizlet and memorize flashcards containing terms like The long-run equilibrium of an economy occurs A. where the long-run supply curve is to the right of the aggregate demand curve. B. where the upward sloping supply curve meets the aggregate demand curve. C. where the long-run aggregate supply curve meets the aggregate demand curve. .D. where the …
Aggregate supply
Aggregate supply is the total value of goods and services produced in an economy. The aggregate supply curve shows the amount of goods that can be produced at different price levels. The aggregate supply curve is related to a …
Econ cahp 12 Flashcards
explain shifts in the aggregate demand curve. include input prices and resource productivity. demonstrate why real output and the price level are inversely related. For each of the following …
Aggregate Supply Curve: Definition, Graph and …
In this article, we will delve into the concept of the aggregate supply curve by explaining its short-run and long-run versions, key features, and the factors that influence it. Aggregate supply (AS) Definition; Aggregate …
Econ 2013 Macro 5: Chapter 5 Flashcards
The figure given below shows the aggregate demand and supply curves for the U.S. According to the figure, from the beginning of period 1 to the end of period 2, _____. A) real GDP remained constant at $6,000 B) the inflation rate fell from 4 percent to 2 percent C) real GDP decreased and then increased D) real GDP fell from $10,000 to $6,000 E ...
Macroeconomics Chapter 11 Flashcards
Study with Quizlet and memorize flashcards containing terms like Inflation in an economy implies that A. the average price level has increased over a stated period of time. B. the price of every good has increased. C. stores have increased their prices for no other reason than to earn more profit. D. that real GDP is overstated due to the higher price level., Cost-push inflation arises …
ECON 2301- exam 4 Flashcards
Study with Quizlet and memorize flashcards containing terms like All of the following would shift the LRAS curve to the right EXCEPT, Long-run aggregate supply reflects, The long-run aggregate supply curve is and more.
Aggregate Supply and Demand and the Growth Diamond
The aggregate supply (AS) curve is the total quantity of final goods and services supplied at different price levels. It slopes upward because wages and other costs are sticky in the short …
AP MACRO ECON UNIT 3 PRACTICE QUESTIONS FROM AP …
Study with Quizlet and memorize flashcards containing terms like Aggregate demand may be measured by adding: A. consumption, investment, savings, and imports B. Savings, government spending, and business inventories C. Consumption, investment, government spending, and net exports D domestic private expenditures and government spending E. domestic expenditures …
Aggregate Supply Explained: What It Is and How It …
Aggregate supply is represented by the aggregate supply curve. There is typically a positive relationship between aggregate supply and the price level. Aggregate supply is the total...
Macroeconomics
Study with Quizlet and memorize flashcards containing terms like The long-run aggregate supply curve shifts outward when A. there are changes in the power of government. B. there is increased demand of real goods and services. C. there is economic growth. D. the real-balance effect takes hold., Long-run aggregate supply is A. upward sloping. B. the level of output that occurs …
Chapters 20,21,22 Flashcards
Along the short-run aggregate supply curve (SRAS), an increase (rightward shift) in the aggregate demand curve will increase: both the price level and real GDP. ... In the aggregate demand/aggregate supply model, a country's full-employment real GDP is represented by: aggregate supply.
ECON 201 Problem Set 4 Flashcards
A. Which component of AD is primarily affected? B. What likely happens to the level of unemployment? C. What likely happens to the AD curve?, Which scenario would lead to a decrease in the long‑run aggregate supply curve in the hypothetical country of Saigonia?, How, if at all, did these events affect the long‑run aggregate supply (LRAS) curve?
Lecture 14 Flashcards
At very low levels of output, the short run aggregate supply curve is relatively A) flat, because firms are reluctant to give their current workers raises when output is so low B) flat, because firms can expand output with relatively little increase in per-unit production cost C) steep, because increasing output will cause relative large increases in per-unit production costs D) steep, …
AP Econ Flashcards
Study with Quizlet and memorize flashcards containing terms like Which of the following will shift the aggregate demand curve to the right? A A report that corporate earnings were lower than expected B An increase in interest rates caused by a tightening of monetary policy C Increased imports caused by appreciation of the dollar D Increased spending by businesses on …
Macroeconomics Exam Three | Quizlet
John Maynard Keynes developed the ideas underlying the aggregate-expenditures model. in the 1960s. ... If a country's MPC is 0.9 and exports increased by $12 billion while imports remained the same, GDP will increase by ... diagram. The initial aggregate demand curve is AD1, and the initial aggregate supply curve is AS1. In the long run, the ...
Ch 19 Macroeconomics Flashcards
Which of the following will have the greatest influence on shifting the aggregate supply curves of high-income countries to the right? growth-oriented public policy. Most contracts, wage levels, and interest rates are either indexed to inflation, or involve using the currency of another country to sidestep the problem of inflation in some ...
ECON-B 252 Quiz 5 Flashcards | Quizlet
Study with Quizlet and memorize flashcards containing terms like According to Keynes, one explanation for inflexible (sticky) prices is a.) long-term labor contracts. b.) flexible wages. c.) government intervention. d.) inflation., In the (Modern or "Combined") Keynesian Model with inflexible prices, the shape of the _____ curve is _____., Which of the following are …
ECO 110 Ch 13 Quiz Flashcards | Quizlet
Study with Quizlet and memorize flashcards containing terms like (Figure: Aggregate Demand) Point A on this aggregate demand curve represents a real GDP growth rate of:, (Figure: Long-Run Aggregate Supply Curves) Which of the following can explain the shift of the long-run aggregate supply curve from A to B in the figure?, An increase in _____ will shift the SRAS …
ECON 2214 Homework + Quiz 11 Flashcards | Quizlet
Study with Quizlet and memorize flashcards containing terms like Which of the following changes aggregate supply and shifts the aggregate supply curve? i. change in the price level ii. change in potential GDP iii. change in the money wage rate A. iii only B. ii only C. i, ii, and iii D. ii and iii Your answer is correct.E. i only, In the shortminus− run, an increase in the price of raw ...
Test 2 Questions Flashcards
Study with Quizlet and memorize flashcards containing terms like 1.(The National Economy) Why do economists pay more attention to national economies (for example, the U.S. or Canadian economies) than to state or provincial economies (such as California or Ontario)?, (Economic Fluctuations) Describe the various components of fluctuations in economic activity over time. …
Shape of aggregate supply curves (AS)
The aggregate supply curve shows the total supply in an economy at different price levels. Generally, the aggregate supply curve slopes upwards - a higher price level encourages firms to supply more. However, there are different …
Econ Ch 19 Flashcards
Study with Quizlet and memorize flashcards containing terms like The main public policies of technological leading countries are _________________ focused on investment, including investment in human capital, in technology, and in physical plant and equipment., Most contracts, wage levels, and interest rates are either indexed to inflation, or involve using the currency of …
Chapter 13 Macro Flashcards
Study with Quizlet and memorize flashcards containing terms like Which of the following is an assumption made by the dynamic model of aggregate demand and aggregate supply? A. Potential real GDP increases continuously during economic expansions and decreases continuously during economic recessions. B. The short−run aggregate supply curve shifts to …
Macro EXAM 3 Flashcards
In terms of the aggregate demand and supply framework, the Great Depression can be viewed as a: a. shift to the right of the aggregate demand curve b. shift to the right of the aggregate supply curve c. movement down the aggregate demand curve d. shift to the left of the aggregate demand curve e. shift to the left of the aggregate supply curve