If the economy is in Y1 in the graph below, and there is no intervention from...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
If the economy is in Y1 in the graph below, and there is no intervention from fiscal and monetary policy, then, over time: AD-AS Price level P₁ AD Y₁ LRAS Y SRAS Real GDP the AD curve will shift out to bring the economy back to long-run equilibrium. the LRAS curve will shift in to bring the economy back to long-run equilibrium. SRAS curve will shift to bring economy back long-run equilibrium. the economy will stay where it is, until it is hit by another shock. If the economy is in Y1 in the graph below, and there is no intervention from fiscal and monetary policy, then, over time: AD-AS Price level P₁ AD Y₁ LRAS Y SRAS Real GDP the AD curve will shift out to bring the economy back to long-run equilibrium. the LRAS curve will shift in to bring the economy back to long-run equilibrium. SRAS curve will shift to bring economy back long-run equilibrium. the economy will stay where it is, until it is hit by another shock.
Expert Answer:
Related Book For
Financial Accounting An Introduction to Concepts, Methods and Uses
ISBN: 978-1133591023
14th edition
Authors: Roman L. Weil, Katherine Schipper, Jennifer Francis
Posted Date:
Students also viewed these economics questions
-
QUESTION 6 1. For Starrite Co., beginning capital balances on January 1, 2012, are Donna Noble $18,000 and Amy Bond $16,000. During the year, drawings were Noble $7,000 and Bond $4,000. Net income...
-
On January 1, 2012, Dawson, Incorporated, paid $100,000 for a 30% interest in Sacco Corporation. This investee had assets with a book value of $550,000 and liabilities of $300,000. A patent held by...
-
On January 1, 2012, Cole Corporation entered into a 10 year lease agreement. The following summarizes the agreement: * Payment of the $30,300 are due at inception of the lease (January 1st, 2012) and...
-
1. Find the perimeter of each figure. 2. 52 feet 40 feet 52 feet 72 feet 11 kilometers 20 kilometers 35 kilometers
-
Are sexually active teenagers any better informed about AIDS and other potential health problems related to sex than teenagers who are sexually inactive? A 15-item test of general knowledge about sex...
-
A team member who does a good job at summarizing discussion, offering new ideas, and clarifying points made by others is providing leadership by contributing ____________ activities to the group...
-
Describe what a manager does. How does the work of managers differ from that of nonmanagerial employees?
-
Leon Company has a unit selling price of $400, variable costs per unit of $260, and fixed costs of $210,000. Compute the break-even point in units using (a) The mathematical equation and (b)...
-
Comparative Balance Sheets At December 3 1 2 0 2 1 2 0 2 0 Assets Cash $ 9 9 , 3 0 0 ?$ 2 4 , 9 0 0 Accounts receivable, net 4 2 , 6 0 0 5 2 , 8 0 0 Inventory 8 9 , 1 0 0 9 9 , 2 0 0 Prepaid...
-
The phone at Mermans Costume Rentals rings, and Annie Oaklea, head of costume inventory, picks it up and answers a query by saying, Let me take a look at my inventory cards. Sorry, it looks as if...
-
For a small loop antenna, the magnetic field from a sinusoidal source is given by: -K'SIe H=- -sin(a, 4.xr Where S is the area of the loop. Using Maxwell, derive the electric field of the dipole....
-
2. In 123.456, the hundreds place is the third place to the left of the decimal point; is the hundredths place the third place to the right of the decimal point? In a long numeral like 333331.333333,...
-
This year a sample of 100 babies showed that 23 weighed over 7 pounds 5 ounces. -> Construct a 95% confidence interval for the true proportion of babies born in the hospital weighted more than 7...
-
ColdIce Limited presented their financial statements for the year ended 2 8 February 2 0 1 8 to the board of directors on 3 1 May 2 0 1 8 for approval. The following events have taken place after the...
-
(a) What is the concentration of hydrogen at the B face in kilograms of H per cubic meter? C"H(B) == i kg/m (b) What is the concentration of hydrogen at the A face in kilograms of H per cubic meter?...
-
2. The following are Stakeholders of financial statements. (2.5 Marks) Name of the stakeholders Type of users 1. Supplier 2. Owners 3. Labor union 4. Financing Manager 5. Investor Required: Identify...
-
Program Details The user will enter a date with their beginning checking account balance followed by the dates and values of debits and credits made to the account. The program will calculate the...
-
Complete the equations for the following equilibria and calculate Keq where the Keq expression includes [HO]. Be sure to enter Keq in proper scientific notation. (a) ammonia (acting as a base) reacts...
-
Bob Hansen opens a retail store on January 1, 2013. Hansen invests $50,000 for all of the common stock of the firm. The store borrows $40,000 from a local bank. The store must repay the loan with...
-
On December 31, 2012, Delchamps Group reported a balance in Restructuring Provisions of 50.9 million, of which 12.5 million was expected to be paid in 2013, with the remainder to be settled during...
-
During the year ended December 31, 2012, an aircraft manufacturer sold a jet for $72 million; assume that the cost to produce the jet was $57 million. The customer agreed to pay the manufacturer $24...
-
Explain why and how the government intervenes in the financial system, and the problems the government safety net creates.
-
Identify the sources and discuss the consequences of bank runs, bank panics, and financial crises.
-
In the absence of limits on the behavior of large intermediaries, how might the perception of institutions being too-big-to-fail lead to increased concentration in the banking industry?
Study smarter with the SolutionInn App