Question: In the basic AD-AS model, a decrease in the aggregate demand curve would in the long run lead to A. no change; no change B.

In the basic AD-AS model, a decrease in the aggregate demand curve would in the long run lead to A. no change; no change B. an inrease; no change OC. no change; a decrease OD. an inrease; an inrease ... in real GDP rate and in the price level

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

27) 27) Which of the following statements is TRUE? A) Investment is always less than savings. B) There is an inverse relationship between investment and the interest rate. C) There is no relationship...

i. Use the Taylor rule to determine the appropriate setting of the overnight interest rate if the current inflation is 1%, equilibrium overnight interest rate is 2%, target inflation is 2% and there...

Question 2 1 0 pts The economy is initially in long - run equilibrium then Scenario: A reduction of the import tax ( tariff ) on foreign consumer goods occurs . a ) Identify the Short - Run Impact on...

The economy is initially in long - run equilibrium then Scenario: The discovery of a new, abundant, cheap and convenient energy source. a ) Identify the Short - Run Impact on the AD - AS model due to...

G h docs.google.com + G 3.4 Long-Ru.. G 3.5 Equilibrium.. G 3.7 Long-Run... G 3.8.1- Fiscal. G Macro Topic... Dashboard G Macro Topic... G Macro Topic... |3.3 Short-Ru.. G 3.6 Changes... 1. Identify...

Question 1(Multiple Choice Worth 1 points) (02.06 MC) Suppose Country 'X' is producing an output of 300 units of a certain good at $3 per unit in 2017. With time, the price level rises from $3 per...

1. What is GDP? 2. How does GDP avoid multiple counting and exaggeration of the value of GDP? 3. What are the things not included in GDP? 4. Calculate GDP using the expenditure approach. 5. What is...

Macroeconomics. Please help !!! Thank you 10 . Use of discretionary policy to stabilize the economy Should the government use monetary and fiscal policy in an effort to stabilize the economy? The...

Part one. Don't give incomplete work. WASHINGTONA top Fed official said Tuesday it is too early to tell whether the coronavirus outbreak will force the central bank to resume rate cuts in the coming...

a. Which of the followingexplain why the aggregate demand curve slopes downward? The interest-rate effect, the real-balances effect, and the foreign-trade effect The investment effect, the...

A company is examining two alternative choices for moving goods from its plant in Abu Dhabi to its depot in Fujairah. It has been traditionally shipping goods in full truck load (FLT) mode so as to...

The cable attached to the tractor at B exerts a force of 350 lb on the framework. Express this force as a Cartesianvector. F= 350 1b 35 ft SOR

Consider thie following faCts relating To Asia / Pacific Index for the year 2 0 2 0 Sales 2 2 5 3 Depreciation $ 1 1 2 Interest Expenses $ 4 4 Estimated operating profit ( EBIT ) margin is 1 5 % ;...

In own at 250 words please, thanks. Explain the income and substitution effects in the law of Demand. Give an example