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Suppose that the position of a nation"s long-run accumulation supply (LRAS) curve has not changed, but its long-run equilibrium price level has decreased. FACTORa.A loss in the value of the domestic currency relative to other human being currenciesb.Upper A to decrease in the quantity of money in circulationc.An boost in the labor force participation rated.An rise in taxese.A fall in genuine incomes of nations that are key trading partners of this nationf.Increased long-run financial growth that the components given above, which might account because that the price level decrease through constant LRAS?
Consider the accompanying diagram once answering the questions that follow.Suppose that the existing price level is upper P 3. In this case, the price will climb toward top P 1because
Consider the number to the right showing the long-run aggregate supply (LRAS) and also the aggregate demand (AD) curves.Suppose that the long-run accumulation supply curve moves to a GDP level the $30 billion. I beg your pardon of the following is true?
If the yes, really price level increases beyond the long-run equilibrium price level, all of the adhering to will often tend to happen except
Annual U.S. Inflation prices rose substantially during the 1970s however declined to lower levels ~ the 1980s.
Persistent inflation in a cultivation economy is possible only if the accumulation demand curve shifts rightward in time at a quicker pace than the rightward development of the long-run accumulation supply curve.
Which that the following occasions would cause a movement up along the ad curve, other things being equal?
When the price level rises, the real value of financial assets (like bonds, and savings account balances) declines.
the aggregate demand curve represents total planned expenditures on every goods and services if an individual need curve represents a single good or service.
Suppose the the complete employment level of nominal GDP rises in one year native $13.8 to $14.2 trillion. The long-run equilibrium price level, however, remains unchanged at 115.By just how much (in real dollars) has the long-run aggregate supply curve change to the ideal from one year to the next? $*** trillion. (Round her answer to two decimal places.)
Consider the accompanying diagram once answering the inquiries that follow.Suppose the the present price level is top P 2. In this case, the price will autumn toward top P 1 because
An boost in the LRAS curve the is larger proportionately than boost in the ad curve will lead to
If the LRAS shifts to the best over time and during this time ad does no noticeably change, real GDP will ________ and also the price level will ________.
Suppose that during the past 3 years, equilibrium real GDP in a nation rose steadily, native $480 exchange rate to $540 billion, however even despite the place of its accumulation demand curve remained unchanged, its equilibrium price level steadily declined, indigenous 110 to 103. What could have accounted for these outcomes, and what is the term because that the adjust in the price level knowledgeable by this country?
An increase in long-run aggregate supply cuases the price level to increase, and also is therefore inflationary.
When the price level rises, the real value of financial assets (like bonds, and savings account balances) declines.
Which the the following is a correct explanation because that why the accumulation demand curve slopes downward?
As the price level increases, the actual value the cash balances decreases, and also total expenditure fall.
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Consider the figure to the right reflecting the long-run aggregate supply (LRAS) and also the aggregate demand (AD) curves.Suppose the the long-run aggregate supply curve moves to a GDP level of $20 billion. I beg your pardon of the adhering to is true?
If financial growth reasons the long-run aggregate supply curve to shift rightward over time, however the accumulation demand curve go not change, us expect
Which the the adhering to is a exactly explanation for why the aggregate demand curve slopes downward?
As the price level decreases, the genuine value that cash balances increases, and also total expenditure rise.
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Solutions hands-on to accompany Essentials the Investments8th EditionAlan J. Marcus, Alex Kane, Zvi Bodie
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