This topic contains a solution. Click here to go to the answer

Author Question: A movement along the supply curve might be caused by a change in a. technology. b. supplier's input ... (Read 90 times)

mikaylakyoung

  • Hero Member
  • *****
  • Posts: 531
A movement along the supply curve might be caused by a change in
 a. technology.
 b. supplier's input prices.
 c. expectations about future prices.
 d. the price of the good or service that is being supplied.

Question 2

Discuss the difference between an increase in the aggregate demand curve and an increase in the quantity of real GDP demanded. Include a discussion of how the price level relates to each event.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

hugthug12

  • Sr. Member
  • ****
  • Posts: 329
Answer to Question 1

d

Answer to Question 2

An increase in aggregate demand is depicted as a shift of the entire curve to the right. Such a shift could be caused by any factor other than the overall price level that has a positive impact on spending. Examples include lower personal taxes, lower interest rates, and increased government spending. Ceteris paribus, the result of an increase in aggregate demand is an increase in the price level. In contrast, an increase in the quantity of real GDP demanded is depicted as movement along the existing aggregate demand curve. The only factor that would cause this movement is a decrease in the overall price level.





 

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

Today, nearly 8 out of 10 pregnant women living with HIV (about 1.1 million), receive antiretrovirals.

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?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

For a complete list of videos, visit our video library