The position of the long-run aggregate supply curve Group of answer choices:   a. is determined by resource usage and technology. b. is at the point where the unemployment rate is zero. c. shifts to the right when the money supply increases. d. is at the point where the economy would cease to grow.

Q: Refer to the diagram. The initial aggregate demand curve is AD1 and the initial aggregate supply…

A: cost push inflation influenced to the production cost of the firm which affects the output level .…

Q: Suppose the economy is in a long-run equilibrium, as shown in the following graph. Now suppose that…

A: The aggregate demand curve shows the negative relationship between price level and real GDP where…

Q: Starting with a short run and long run equilibrium, assume a war breaks out, then," a.government…

A: Short-run equilibrium occurs at the intersection point of the short-run aggregate supply (SRAS) and…

Q: Please answer all parts of the question! Thank you! 1. Answer each of the questions completely.…

A: a)Consumption expenditure-Peoples consumption increases Investment expenditure-peoples investment…

Q: Assume that the stock market increases by 5% this month. As a result Question 6 options: a) the…

A: A stock market rise increases the overall confidence of the people, and the economy increases. There…

Q: True or false The aggregate supply curve is vertical in the long run at the full-employment level…

A: According to the given question Answer is TRUE

Q: If the government chooses not to intervene in the economy, what will happen to the above variables…

A: If the government chooses not to intervene in the economy, then the following will happen to the…

Q: you want, you can) TO MAKE EXPLANATION IS SO İMPORTANT.NOTE THAT: DESCRIPTION ≠

A: Aggregate supply or total output is the total supply of services and goods being produced at a given…

Q: The long-run aggregate supply curve is a vertical line passing through Select one: Oa the natural…

A: The long-run aggregate supply curve is a vertical line passing through full employment level of…

Q: Consider a demand shock caused by a contraction in the quantity of money in the economy. Analyze…

A: Contraction in the quantity of money in the economy will lead to a decrease in Aggregate demand due…

Q: 3. are economists who generally emphasize the importance of aggre supply in determining the size of…

A: Neoclassical theory suggests that a company's investment level needs to depend only on recognized…

Q: Use an aggregate demand (AD) and aggregate supply (AS) model to respond to the following questions.…

A: please find the answer below.

Q: When the aggregate demand curve and the aggregate supply curve intersect,   A. the economy is in…

A: The aggregate demand curve shows all the combinations of the quantity of GDP and price level at…

Q: Sales had been slow at Martha's Fresh Flowers for several months, but then business starting picking…

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Q: Aggregate demand curve of an economy is given by AD = 50 - 0.2P, the long-run aggregate supply.…

A: Okun's law  , introduced by Arthur  Melvin Okun, expresses the link between the unemployment rate…

Q: government increases spending on national defense. based on the statement above, explain the…

A: I will show the effect of the increased spending on the national defense by using the AD-AS model.…

Q: as the slope of the aggregate supply curve increase, this indicates that; a. inflation will be less…

A: When slope of aggregate supply curve increases,economy would be moving towards potential GDP.

Q: the long run. The initial full-employment level of output is y-900 and the Consider the aggregate…

A:

Q: If the short-run aggregate supply shifts left: a) Price level rises and output falls b) Price…

A: Following below is the graph depicting the impact of a shift in the short run aggregate supply :-…

Q: Now, show the long-run impact of the investment tax credit by shifting both the aggregate demand…

A: The AD-AS is a macroeconomic model that determines the national output and the general price level…

Q: MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the…

A: (Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A country is currently in a recession. ( a. Illustrate this economy on a fully-labeled aggregate…

A: Recession refers to the situation where economic activities slow down and output growth is less than…

Q: A country is currently in a recession. ( a. Illustrate this economy on a fully-labeled aggregate…

A: Recession refers to the situation where economic activities slow down and output growth is less than…

Q: Suppose that firms become very pessimistic about future business conditions and cut heavily on…

A: The supply depends upon the price level in the economy. when the price level is higher, the…

Q: Suppose the economy is in a situation of moderate unemployment, and then an exogenous increase of…

A: If the economy is in a situation of moderate unemployment in short run, it has ability to employ…

Q: The aggregate demand curve portrays the relationship between the price level and real GDP. What are…

A: The aggregate demand curve portrays that if the price level increases, the real GDP decreases and…

Q: What does the LRAS (Long Run Aggregate Supply) represent? Potential output Full employment output…

A: Over the long term, the result an economy can create relies just upon the assets and innovation that…

Q: Assume the economy is in long-run equilibrium in 2019. Use the Aggregate Demand and Aggrecate Supply…

A: Since F part is missing, we'll be answering only C and D. Please resubmit the question with F part

Q: QUESTION 2 Consider the aggregate supply-aggregate demand (AD-AS) model that we saw in class. Assume…

A: In long run the economy adjusts in such manner that actual output is always equal to potential…

Q: Aggregate supply (AS) denotes the relationship between the __________________ that firms choose to…

A: Aggregate supply shows positive relationship between price and quantity of output. It is derived…

Q: If Aggregate Supply (Short-Run) increase while Aggregate Demand remains constant, which of the…

A: Desclaimer:-  As you posted multiple questions we are solving the first one only.  Aggregate supply…

Q: Assuming a stable short-run supply curve, what will happen if there is a shift in aggregate demand?…

A: The AD and AS curve shows the relation between the price level and output. This model determines…

Q: Most economists use the aggregate demand and aggregate supply model primarily to analyzea. short-run…

A: The AD and AS curve shows the effect of macroeconomic policy on the price level of the economy as a…

Q: Unemployment would decrease and prices would increase if a. aggregate supply shifted left.…

A: Unemployment: Joblessness is a term alluding to employable people and looking for work yet can't get…

Q: Decide if the following events are Micro, shifting supply or demand, or Macro, shifting AD or AS.…

A: 1)Shifting supply rightwards. 2)Macro 3)Demand shifts leftwards. 4)Demand shifts rightwards.…

Q: un aggregate supply, and long-run aggregate supply curves, explain the process by which each of the…

A: a. A decrease in wealth of households would lead to a reduction in consumer spending. At E1 being…

Q: Q)Explain how the assumptions of the aggregate supply model are different in the long run vs the…

A: The sum of all commodities and services generated by an economy during a specific time period is…

Q: Suppose the economu is operating at less than full employment. an increase in aggregate demand will…

A: The aggregate demand curve shows the inverse relationship between the price level and the total…