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 136 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
:D TYSM

milbourne11

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
As sessile organisms, plants have evolved many mechanisms to mitigate the potential damage of abioti As sessile organisms, plants have evolved many mechanisms to mitigate the potential damage of abioti
The resting membrane potential. The resting membrane potential.
An Action Potential An Action Potential
Characteristics of a Neuron at Rest and During the Different Phases of an Action Potential Characteristics of a Neuron at Rest and During the Different Phases of an Action Potential
An Event-Related Potential An Event-Related Potential
Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ... Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ...
Video: Allergic Rhinitis

For a complete list of videos, visit our video library