Question

In the basic​ AD-AS model, an increase in the aggregate demand curve would in the long...

In the basic​ AD-AS model, an increase in the aggregate demand curve would in the long run lead to​ ________ in real GDP and​ ________ in the price level.

A.

an​ increase; an increase

B.

no​ change; no change

C.

an​ increase; no change

D.

no​ change; an increase

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
consider the macroeconomic AD-AS model with an aggregate demand curve and a short-run aggregate supply curve....
consider the macroeconomic AD-AS model with an aggregate demand curve and a short-run aggregate supply curve. assume that changes in national output also represent changes in real GDP. a. use the AD-AS model to explain and illustrates the differences between demand-side measures and supply-side measures and give an example of each. you also need to mention which markets are embedded within each curve. b. use the AD-AS model to analyse and illustrate the short run impact of an increase in...
5. Indicate how each of the following events would affect the aggregate demand AD curve: a...
5. Indicate how each of the following events would affect the aggregate demand AD curve: a short-run decrease in the price level an increase in consumer confidence on the price level and real GDP an increase in government purchases
​For a given aggregate supply curve, an increase in aggregate demand will: a. ​increase real GDP....
​For a given aggregate supply curve, an increase in aggregate demand will: a. ​increase real GDP. b. ​decrease real GDP. c. ​increase the real exchange rate. d. ​decrease the real interest rate. e. ​decrease the price level. ​Given an aggregate supply curve, a decrease in aggregate demand will: a. ​increase the real interest rate. b. ​increase real GDP. c. ​decrease real GDP. d. ​increase the price level. e. ​decrease the real exchange rate.
An increase in aggregate demand (AD) can cause a recession in the economy. an increase in...
An increase in aggregate demand (AD) can cause a recession in the economy. an increase in cyclical unemployment. an expansion in the economy. Flag this Question Question 22 pts Economic growth is shown in the AS-AD model as a leftward shift in the short run AS curve. rightward shift in the AD curve. rightward shift in the long run AS curve. Flag this Question Question 32 pts In the long run, the most important factor that shifts the aggregate supply...
Assume a model with a downward-sloping aggregate demand curve and an upward-sloping aggregate supply curve. In...
Assume a model with a downward-sloping aggregate demand curve and an upward-sloping aggregate supply curve. In this model, a decrease in aggregate supply will lead to an increase in real GDP and a decrease in the price level. True or False
Draw a basic short run aggregate supply (SRAS), aggregate demand (AD) and long-run aggregate supply curve...
Draw a basic short run aggregate supply (SRAS), aggregate demand (AD) and long-run aggregate supply curve (LRAS) that shows the economy in long-run equilibrium.
Describe whether the following changes cause the aggregate demand curve to increase (shift right), decrease (shift...
Describe whether the following changes cause the aggregate demand curve to increase (shift right), decrease (shift left), or neither. (a) The price level increases. (b) Investment decreases. (c) Imports decrease and exports increase. (d) The price level decreases. (e) Consumption increases. (f) Government purchases decrease. Describe whether the following changes cause the long-run aggregate supply curve to increase (shift right), decrease (shift left), or neither. (a) The price level increases. (b) The stock of capital in the economy increases. (c)...
When an economy operates at its long-run potential output level, a. aggregate demand will exceed aggregate...
When an economy operates at its long-run potential output level, a. aggregate demand will exceed aggregate supply in the goods and services market. b. unemployment will decline to an abnormally low rate that cannot be sustained in the long run. c. the actual rate of unemployment will exceed the natural rate of unemployment. d. the natural and actual rates of unemployment will be equal. If an economy is operating in the range where its aggregate supply curve is vertical, a....
11.   Demand-pull inflation occurs when the aggregate __________ curve shifts _______. A.   demand, right B.    demand, left C.    supply, right...
11.   Demand-pull inflation occurs when the aggregate __________ curve shifts _______. A.   demand, right B.    demand, left C.    supply, right D.   supply, left 12.   When the aggregate price level decreases, the resulting decrease in interest rates will most likely ___________ investment and _____________ consumption. A.   increase, increase B.    increase, decrease C.    decrease, increase D.   decrease, decrease 13.   The economy is operating at full capacity.  The long-run aggregate supply curve is __________.  In the long run, an increase in the aggregate price level will __________ output. A.   horizontal, increase B.    horizontal, not change C.    vertical, increase D.   vertical,...
Favorable weather    a.    would cause the AS curve to shift leftward, thereby increasing both...
Favorable weather    a.    would cause the AS curve to shift leftward, thereby increasing both output and the price level    b.    would increase firms’ unit costs    c.    is an example of a negative supply shock    d.    is an example of a positive demand shock    e.    would lead to an increase in output and a decrease in the price level A negative supply shock    a.    decreases real GDP and increases...