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

Author Question: The rate at which aggregate supply changes to restore equilibrium at potential output depends ... (Read 134 times)

ENagel

  • Hero Member
  • *****
  • Posts: 540
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
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 :)


TheNamesImani

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

For a complete list of videos, visit our video library