This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The rate at which aggregate supply changes to restore equilibrium at potential output depends ... (Read 138 times)

ENagel

  • Hero Member
  • *****
  • Posts: 540
on: Jun 30, 2018
The rate at which aggregate supply changes to restore equilibrium at potential output depends crucially on:
 a. how quickly planned investment spending adjusts to changes in population growth.
 b. how quickly planned consumption spending adjusts to changes in the price level and nominal wages.
  c. how quickly technology changes to increase aggregate supply.
 d. whether the economy is experiencing a recessionary gap or an expansionary gap.
 e. how quickly real wages adjust to restore full employment in the labor market.

Question 2

For a given increase in aggregate demand, the steeper the short-run aggregate supply curve:
 a. the larger the increase in investment expenditure.
  b. the smaller the increase in the price level.
 c. the smaller the increase in real GDP.
 d. the larger the increase in real GDP.
 e. the smaller the increase in real interest rate.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Pamela.irrgang@yahoo.com

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jun 30, 2018
Answer to Question 1

e

Answer to Question 2

c


ENagel

  • Member
  • Posts: 540
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

cici

  • Member
  • Posts: 325
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

The rate of global emissions is rising rapidly, especially in India and China The rate of global emissions is rising rapidly, especially in India and China
Find the factor demand for labour and the amount of output it will produce. Show all ... Find the factor demand for labour and the amount of output it will produce. Show all ...
The dissociation equilibrium constants for the protonated form of alanine (a diprotic amino ... The dissociation equilibrium constants for the protonated form of alanine (a diprotic amino ...
A 2-kg box of taffy candy has 40 J of potential energy relative to the ground. Its height above ... A 2-kg box of taffy candy has 40 J of potential energy relative to the ground. Its height above ...
Write equilibrium constant expressions for the following reactions in terms of concentration: Write equilibrium constant expressions for the following reactions in terms of concentration:
Rate order question Rate order question
Video: Glucose anabolism reactions: Glycogenolysis and Gluconeogenesis

For a complete list of videos, visit our video library