In the horizontal range of the sras curve

Assignment Help Business Economics

Reference no: EM131392208

1. In the horizontal range of the SRAS curve,

a. the price level is constant

b. the classical model assumption apply

c. real GDP is supply-determined

d. full employment exists

2. In the classical medel, if AD shifts to the right, then

a. real GDP rises

b. the price level rises

c. real GDP falls

d. the price level is unaffected

3. In the Keynesian of SRAS, if AD shifts to the left, then

a. the price level falls

b. real GDP is unchanged

c real GDP falls

d. the price level rises

4. If unused capacity and significant unemployment exists, then the SRAS curve is

a. vertical over a broad range

b. downward sloping

c. horizontal or slightly upward sloping

d. the same as the LRAS curve

5. Both unemployment and the price level rise if the

a. AD curve shifts to the right

b. AD curve shifts to the left

c. SRAS curve shifts to the left

d. SRAS curve shifts to the right

Reference no: EM131392208

Questions Cloud

What is natural about the natural rate of unemployment : What is "natural " about the natural rate of unemployment? why might the natural rate of enemployment differ across countries? 4. Suppose a drought destroys farm crops and drives up the price of food. what is the effect on the short-run trade-off bet..

Describe your outlook for the country economic future : Describe your outlook for the country's economic future if your advice is followed and if it is not. Predict what you think is most likely to happen and explain why.

What combination of fiscal and monetary policies : Explain and evaluate your prescription for the United States' economy. Explain what solutions you advocate that Reich omits, opposes, or does not discuss, and why. Should the basic bargain be restored or is it no longer realistic or possible?

Taylor rule the federal funds target rate equals : Suppose the equilibrium real federal funds rate is 2 percent, the target rate of inflation is 2 percent, the current inflation rate is 3 percent, real GDP is 17.17 trillion, and potential real GDP is $17 trillion. If the weights for the inflation gap..

In the horizontal range of the sras curve : Both unemployment and the price level rise if the. If unused capacity and significant unemployment exists, then the SRAS curve is. In the classical medel, if AD shifts to the right, then. In the horizontal range of the SRAS curve,

Influx of working age immigrants increases labor supply : Use the IS-LM model to determine the effects of each of the following on the general equilibrium values of the real wage ,employment ,output ,real interest rate,consumption ,investment and price level. An influx of working age immigrants increases la..

What is meant by least cost pricing in carbon models : What is meant by least cost pricing in carbon models? What is the range for the mean of GDP falls these models predict by 2050 in percentage terms? What is the main deviation from least cost pricing Edmonds attempts to capture? How does he model it? ..

Example of leading indicator : Give an example of a "leading Indicator" and explain how it can predict how the general economy will behave. What is the relationship between the GDP gap and the recessionary gap? Discuss the role of the Federal Reserve in getting an economy out of a..

Cost-benefit analysis and cost-effectiveness analysis : What are the fundamental differences between cost-benefit analysis and cost-effectiveness analysis? When is each most appropriately used? (Explain)

User Account

All Pages