Figure 02: Aggregate-Demand and Aggregate-Supply LRAS SRAS SRAS2 Pl AD Yi 1 Ques
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Figure 02: Aggregate-Demand and Aggregate-Supply LRAS SRAS SRAS2 Pl AD Yi 1 Question 08. Using Figure 02, the nation of Essos's short-run aggregate-supply curve will shift from SRAR to SRAS If there is an outbreak of war in a foreign nation that frequently trades with Essos. b. a. If there is a decrease in the expected price level in Essos. If there is an increase in the expected price level in Essos. d. c. None of the above Question 9 Consider the nation of Dorne. All other things the same, a decrease in Dorme's real interest rate induces: a. Citizens of Dorne to buy more foreign assets, which increases Dorne's net capital outflow b. Citizens of Dorne to buy more foreign assets, which reduces Dorne's net capital outflow c. Foreigners to buy more Dornian assets, which reduces Dorne's net capital outflow d. Foreigners to buy more Dornian assets, which increases Dorne's net capital outflowExplanation / Answer
8) b)If there is a decrease in the expected price level in essos.
(then the supply curve shift from SRR1 to SRAS2 if price decrease the real GDP values also increase. ad curve shift wen any compononent of its changes such as consumption ,investments,government spending,eports.AS changes wen there are change in the price of outputs)
9) a) citizens of dorne to buy more foreign assets , which increase dornes net capital outflow( ie wen the intrest rates are decreased the citizen willing to buy more foreign assets thereby an increase in capital outflow because the money spending on the foreign assets increases and money get spreaded from nation)
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