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_________ are unexpected temporary events that can either increase or decrease t

ID: 1226675 • Letter: #

Question

_________ are unexpected temporary events that can either increase or decrease the short-run aggregate supply

A. consumption

B. supply shocks

C. Nonlabor input prices

D. net exports

If some nonprice level determinant causes consumption and investment to decrease, then the effect on aggregate demand will be a:

A. movement upward along the curve

B. movement downward along the curve

C. shift to the left

D. shift to the right

Which of the following is not a part of GDP?

A. net imports

B. consumption

C. government purchases

D. investment

A. consumption

B. supply shocks

C. Nonlabor input prices

D. net exports

If some nonprice level determinant causes consumption and investment to decrease, then the effect on aggregate demand will be a:

A. movement upward along the curve

B. movement downward along the curve

C. shift to the left

D. shift to the right

Which of the following is not a part of GDP?

A. net imports

B. consumption

C. government purchases

D. investment

Explanation / Answer

Answer )

Q1.) B. supply shocks

Supply shocks: unexpected temporary events that can either increase or decrease the short run aggregate supply (natural disasters, disruptions in trade, war, labor strikes).

Q.2) C. shift to the left

causes(nonprice) that results in decrease in aggregate spendings shifts the aggregate demand curve to the left.,

Q.3.) A. net imports.

GDP = C + I + G + (Ex - Im)

where (Ex - Im) = net exports.