22) Refer to Figure 24-1. Ceteris paribus, an increase in the price level would
ID: 1206078 • Letter: 2
Question
22) Refer to Figure 24-1. Ceteris paribus, an increase in the price level would be represented by a movement from
A) AD1 to AD2.
B) AD2 to AD1.
C) point A to point B.
D) point B to point A.
23) Refer to Figure 24-1. Ceteris paribus, an increase in interest rates would be represented by a movement from
A) AD1 to AD2.
B) AD2 to AD1.
C) point A to point B.
D) point B to point A.
24) The level of aggregate supply in the long-run is not affected by
A) changes in technology.
B) changes in the capital stock.
C) changes in the price level.
D) changes in the number of workers.
25) If stricter immigration laws are imposed and many foreign workers in the United States are forced to go back to their home countries,
A) the long-run aggregate supply curve will shift to the right.
B) the long-run aggregate supply curve will shift to the left.
C) we will move up along the long-run aggregate supply curve.
D) we will move down along the long-run aggregate supply curve.
26) Changes in the price level
A) increase the level of aggregate supply in the long run.
B) decrease the level of aggregate supply in the long run.
C) do not affect the level of aggregate supply in the long run.
D) increase the level of aggregate supply in the long run only at very high levels of output.
27) The long-run aggregate supply curve will shift to the right if the economy
A) experiences technological change.
B) has a decrease in population.
C) experiences high levels of inflation.
D) net exports decrease.
28) An increase in the price level will
A) shift the short-run aggregate supply curve to the left.
B) shift the short-run aggregate supply curve to the right.
C) move the economy up along a stationary short-run aggregate supply curve.
D) move the economy down along a stationary short-run aggregate supply curve.
Figure 24-1 Price level AD2 AD1 Real GDPExplanation / Answer
22)
point B to A
23)
A) AD1 to AD2
if anything changes in the constant parameters(Ceteris paribus), the curve will shift in to right or left side. here cuve will shift in to rigt side due to increase in interest rate hike
24)
C) changes in the price level
other options are related to Ceteris paribus
25)
B) the long-run aggregate supply curve will shift to the left
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