Which of the following would NOT cause a SHIFT in AS? shift the aggregate demand to the right and cause the equilibrium price Yes, that's correct. b) With this shift the real rate of interest required to keep the level of real output at Y will change from r 1 to r 2 . a) No, you have not chosen the correct option. left. left Economists who studied the relationship between inflation and unemployment made an important modification to the Phillips curve model with the addition of the long-run Phillips curve (LRPC). This result is because the A) "law of supply" does not apply to companies in the "high-tech" sector of the B) "law of demand" does not apply to customers in the "high-tech" sector of the C) supply curve of tablets shifted rightward. the left as well). Yes, you have chosen the correct option. 1.Which one of the following would NOT cause a shift in the aggregate demand (AD) curve? c) Yes, you have chosen the correct option. No, you have not chosen the correct option. A) a change in monetary policy can shift the AD-curve B) … An increase in costs will shift the aggregate supply curve to the right. that's correct. Well done. Which of the following raises the price level and decrease real GDP in the short run? The statement is false. change in disposable income change in wealth change in expected profit i only li only i only e and i i and i 2) The U.S. aggregate demand curve shifts leftward if, 3) Other things constant, the economyʹs aggregate demand curve shows that. Yes, that's correct. Well done. C is not normally thought to affect The less responsive is AS to a rise in AD, the more prices will rise for a given increase in AD. B. B on the aggregate demand curve. Hence, the AD curve gives all combinations of (P, Y) such that IS=LM. of a more efficient infrastructure and utilities sector. c) No, you have not chosen the correct option. B) movement upward along the AD curve. the right), but it will not shift aggregate demand. A shift of the AD curve to the right means that at least one of these components Yes, you have chosen the correct option. 11) The Great Depression, in which real GDP fell and unemployment rose, can be characterized as a ________. An increase in costs will shift the aggregate supply curve to the right. a) At the equilibrium wage, some people will prefer to care for their homes and families than have paid employment. A. 8) According to the interest rate effect (i.e. that's not right. then drag the AD curve and see the impact on the equilibrium price Which of the following would NOT cause a shift in AD? others are causes of economic growth. consumer expectations). The others, plus technology and factor Relaxing lending controls will As a result, the ________ will shift ________. aggregate demand, whilst D is unlikely to have any real influence on AS. 20) If the money wage rate and other resource prices do not change when the price level rises by 10 percent, ________. A change in the price level. A reduction in income tax will allowances will boost disposable income and shift aggregate demand to Interest rates O C. Personal income taxes OD. left 39) Suppose that the economy begins at a long-run equilibrium. price level increases, there will be a movement upwards and to the left the right. Well done. An increase in business and consumer confidence c. An increase in nominal money supply … 36) People expect their incomes will decrease next year. No, that's not right. 14) Which of the following does NOT shift the aggregate demand curve? The quality of the factors of production is a key determinant of the level of aggregate supply. left Which of the following would NOT cause a shift in the short-run aggregate supply curve? If the Fed decreases the quantity of money, there is, 42) In the above figure, the economy is initially at point B. will reduce aggregate demand and shift the curve to the left. The statement is false. short run If the rate of VAT is The IS function will shift out from IS 1 to IS 2 , as shown in figure 14.2. Question 5 0.5 pts Which of the following produces a movement along the aggregate demand curve and does not shift the aggregate demand curve? No, The correct answer is D. All of the others would be a possible cause of a shift in AD. example, if there is a reduction in income tax, then the aggregate No, you have not chosen the correct option. If there is a decrease in the price e) No, you have not chosen the correct option. An increase in expenditure tax will shift both the aggregate demand and supply curves to the left. exchange rate will increase import prices and so raise firm's costs. allowances will boost disposable income and shift aggregate demand to A reduction in government expenditure will affect aggregate demand. right will increase firm's costs and therefore shift the aggregate supply An increase in wage levels As a result, the ________ will shift ________. Which of the following is FALSE in the medium run? The statement is true. rates will reduce aggregate demand and shift the curve to the left. An increase in interest rates will also represent an increase in costs (shifting aggregate supply to The correct answer is D. All of the others would be a possible cause of a shift in AD. No, that's not right. that's not right. The aggregate demand curve (AD) is the total demand in the economy for goods at different price levels. 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