Question

1. What would happen to the aggregate supply curve if worker productivity increased as a result...

1. What would happen to the aggregate supply curve if worker productivity increased as a result of increased training and education?

   2. Which of the following could lead to inflation?
        An increase in aggregate supply
        An increase in aggregate demand
        A decrease in aggregate supply
        A decrease in aggregate demand
   3. If the price level rises and the money wage rate stays the same, what effect will this have upon labor demanded and production? .
    4. Explain the effect a rise in price levels would have upon the demand for money and nominal interest rates.
5. Given the same scenario as #6, what will the effect be on real GDP (Explain)?
   6. What are the 2 chief causes of Cost-Push inflation?
   7. Explain in detail why the Great Depression was so bad as compared to the Great Recession of 2008-2009 .

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1. THE AGGREGATE SUPPLY CURVE WOULD INCREASE AS A RESULT OF INCREASED WORKER PRODUCTIVITY RESULTING FROM INCREASED TRAINING AND EDUCATION.

It means AS curve would shift rightward.

2. An increase in aggregate demand and A decrease in aggregate supply both could lead to inflation.

Ans is both B and C.

3.  If the price level rises and the money wage rate stays the same, then THE QUANTITY OF LABOR DEMANDED AS WELL AS PRODUCTIVITY WILL BOTH INCREASE.

4. THE DEMAND FOR MONEY WILL INCREASE AND THE NOMINAL INTEREST RATE WILL ALSO INCREASE.

5. FACED WITH HIGHER INTEREST RATES, BUSINESSES AND PEOPLE DELAY PLANS TO PURCHASE NEW CAPITAL AND CONSUMER DURABLE GOODS AND SO CUT BACK SPENDING. THIS CAUSES A REDUCTION IN THE DEMAND OF REAL GDP.

**First 5 questions are completely answered, please post the other questions separately**

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The aggregate demand curve shows the relationship between the aggregate price level and: A) aggregate productivity....
The aggregate demand curve shows the relationship between the aggregate price level and: A) aggregate productivity. B) the aggregate unemployment rate. C) the aggregate quantity of output demanded by households, businesses, the government, and the rest of the world. D) the aggregate quantity of output demanded by businesses only. 2.When the aggregate price level increases, the purchasing power of many assets falls, causing a decrease in consumer spending. This is known as the _____ effect and is a reason why...
1. What are the 2 chief causes of Cost-Push inflation? 2. Explain in detail why the...
1. What are the 2 chief causes of Cost-Push inflation? 2. Explain in detail why the Great Depression was so bad as compared to the Great Recession of 2008-2009 .
1) Increases in the availability of natural resources will cause the aggregate supply curve to a.  ...
1) Increases in the availability of natural resources will cause the aggregate supply curve to a.   becomes steeper. b.   becomes flatter. c.   shifts outward. d.   shifts inward. e.   shifts inward and becomes flatter. ------------------------------------------------------------------- 2) A decrease in the price level causes the amount of real GDP demanded to increases because: a.   The decrease in the price level causes net exports to decrease. b.   The decrease in the price level causes interest rates to decrease which, it turn, causes investment...
1. The aggregate supply curve indicates the: a. relationship between prices and the level of investment...
1. The aggregate supply curve indicates the: a. relationship between prices and the level of investment spending. b. quantity of goods and services producers will supply at different price levels. c. relationship between prices and the aggregate quantity of goods and services purchased by consumers, investors, governments, and foreigners (net exports). d. relationship between the real wage rate and the quantity of labor supplied by households. 2. How will an increase in the world price of crude oil influence the...
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,...
1. If taxes A. increase, consumption increases, aggregate demand shifts right B. increase, consumption decreases, aggregate...
1. If taxes A. increase, consumption increases, aggregate demand shifts right B. increase, consumption decreases, aggregate demand shifts left C. decrease, consumption increases, aggregate demand shifts left D. decrease, consumption decreases, aggregate demand shifts right 2. When the interest rate increases, the opportunity cost of holding money A. increases, so the quantity of money demanded increases. B. increases, so the quantity of money demanded decreases. C. decreases, so the quantity of money demanded increases. D. decreases, so the quantity of...
The interest rate effect on aggregate demand indicates that a(n): A. Decrease in the price level...
The interest rate effect on aggregate demand indicates that a(n): A. Decrease in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending B. Decrease in the price level will decrease the demand for money, decrease interest rates, and increase consumption and investment spending C. Increase in the price level will increase the demand for money, reduce interest rates, and decrease consumption and investment spending D. Increase in the supply of money...
32.   The economy is experiencing substantial short-run unemployment.  The long-run aggregate supply curve is ___________.  In the long run,...
32.   The economy is experiencing substantial short-run unemployment.  The long-run aggregate supply curve is ___________.  In the long run, there will be _________ in the aggregate price level. A.   horizontal, an increase B.    horizontal, a decrease C.    vertical, an increase D.   vertical, a decrease 33.   The less sensitive households are to changes in interest rates, ______________, for a given increase in the aggregate price level. A.   the more the aggregate demand curve will shift to the left B.    the less the aggregate demand curve will shift to the left C.    the...
Suppose the economy's real interest rate is reduced. What initial effect would this have? Suppose there...
Suppose the economy's real interest rate is reduced. What initial effect would this have? Suppose there is a major increase in federal spending for health care (with no increase in taxes). What initial effect would this have? Suppose personal income taxes are reduced by 10% (with no change in government spending). What initial effect would this have? Suppose labor productivity increases (with no change in nominal wages). What initial effect would this have? Suppose nominal wages increase by 12% (with...
Refer to the table given below. Suppose that aggregate demand increases such that the amount of...
Refer to the table given below. Suppose that aggregate demand increases such that the amount of real output demanded rises by $7 billion at each price level. Real Output Demanded (Original) Price Level Real Output Supplied $506 116 $513 508 108 512 510 100 510 512 92 507 514 84 502 a. By what percentage will the price level increase? percent b. Will this inflation be demand-pull inflation or will it be cost-push inflation? (Click to select)Demand-pull inflationCost-push inflation c....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT