FIGURE 24-2 -Refer to Figure 24-2.Suppose the economy is in a short-run equilibrium at Y1.A contractionary fiscal policy would restore the economy to potential output (Y*)by shifting the

A) AS curve to the left to intersect AD at C. B) AS curve to the right. C) potential GDP and the AS curve to the left. D) AD curve to the right. E) AD to the left to intersect AS at point A. A) AS curve to the left to intersect AD at C. B) AS curve to the right. C) potential GDP and the AS curve to the left. D) AD curve to the right. E) AD to the left to intersect AS at point A.

Exam 24: From the Short Run to the Long Run: The Adjustment of Factor Prices

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Consider the AD/AS model,and suppose that the economy begins at potential output.The effect of a positive AS shock on real GDP will be reversed in the long run with a shift in .

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Question 141

FIGURE 24-2 -Refer to Figure 24-2.Suppose the economy is in a short-run equilibrium at Y₁.A contractionary fiscal policy would restore the economy to potential output (Y^*)by shifting the

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Question 142

Consider the basic AD/AS macro model in long-run equilibrium.An expansionary AD shock would have output effect in the short run and output effect in the long run.

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Question 143

Suppose the following conditions are present in the economy: - firms are facing lower-than normal sales and have reduced output -there is an excess supply of labour and firms are starting to reduce their workforces Which of the following statements describes the adjustment that will happen in the AD/AS macro model?

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Question 144

Many economists think discretionary fiscal policy is of limited effectiveness in stabilizing the economy because 1)the multiplier effects associated with fiscal policy take a long time; 2)changes in government spending and taxation are too small in relation to the size of the economy to have much effect; 3)there are long and uncertain lags in implementing fiscal policy.

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Question 145

Consider the AD/AS macro model.An important asymmetry in the behaviour of aggregate supply is the

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Question 146

The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A. FIGURE 24-3 -Refer to Figure 24-3.A negative shock to the economy shifts the AD curve from to .The initial effect is

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Question 147

The "paradox of thrift" refers to the understandable tendency of people who are worried about their economic situation to their saving,but in aggregate this behaviour causes a recession.

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Question 148

Which of the following best describes the concept of potential output?

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Question 149

Showing 141 - 149 of 149

Exam 24: From the Short Run to the Long Run: The Adjustment of Factor Prices

Consider the AD/AS model,and suppose that the economy begins at potential output.The effect of a positive AS shock on real GDP will be reversed in the long run with a ________ shift in ________.

FIGURE 24-2 -Refer to Figure 24-2.Suppose the economy is in a short-run equilibrium at Y1.A contractionary fiscal policy would restore the economy to potential output (Y*)by shifting the

Consider the basic AD/AS macro model in long-run equilibrium.An expansionary AD shock would have ________ output effect in the short run and ________ output effect in the long run.

Consider the AD/AS macro model.An important asymmetry in the behaviour of aggregate supply is the

The diagram below shows an AD/AS model for a hypothetical economy.The economy begins in long-run equilibrium at point A. FIGURE 24-3 -Refer to Figure 24-3.A negative shock to the economy shifts the AD curve from to .The initial effect is

The "paradox of thrift" refers to the understandable tendency of people who are worried about their economic situation to ________ their saving,but in aggregate this behaviour causes a ________ recession.

Which of the following best describes the concept of potential output?

Economic Issues and Concepts

Economic Theories,Data,and Graphs

Demand, Supply, and Price

Elasticity

Price Controls and Market Efficiency

Consumer Behaviour

Producers in the Short Run

Producers in the Long Run

Competitive Markets

Monopoly, cartels, and Price Discrimination

Imperfect Competition and Strategic Behaviour

Economic Efficiency and Public Policy

How Factor Markets Work

Labour Markets and Income Inequality

Interest Rates and the Capital Market

Market Failures and Government Intervention

The Economics of Environmental Protection

Taxation and Public Expenditure

What Macroeconomics Is All About

The Measurement of National Income

The Simplest Short-Run Macro Model

Adding Government and Trade to the Simple Macro Model

Output and Prices in the Short Run

Long-Run Economic Growth

Money and Banking

Money, Interest Rates, and Economic Activity

Monetary Policy in Canada

Inflation and Disinflation

Unemployment Fluctuations and the Nairu

Government Debt and Deficits

The Gains From International Trade

Trade Policy

Exchange Rates and the Balance of Payments

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Consider the AD/AS model,and suppose that the economy begins at potential output.The effect of a positive AS shock on real GDP will be reversed in the long run with a shift in .

FIGURE 24-2 -Refer to Figure 24-2.Suppose the economy is in a short-run equilibrium at Y₁.A contractionary fiscal policy would restore the economy to potential output (Y^*)by shifting the

Consider the basic AD/AS macro model in long-run equilibrium.An expansionary AD shock would have output effect in the short run and output effect in the long run.

The "paradox of thrift" refers to the understandable tendency of people who are worried about their economic situation to their saving,but in aggregate this behaviour causes a recession.