Podcast
Questions and Answers
Which factor can shift the short-run aggregate supply (SRAS) curve to the left?
Which factor can shift the short-run aggregate supply (SRAS) curve to the left?
- Higher business taxes (correct)
- Changes in the exchange rate
- Business subsidies
- Increases in labor supply
What happens to the long-run aggregate supply (LRAS) curve when there is an increase in the supply of natural resources?
What happens to the long-run aggregate supply (LRAS) curve when there is an increase in the supply of natural resources?
- It becomes steeper
- It remains unchanged
- It shifts to the right (correct)
- It shifts to the left
What is the effect of strong growth in business investment on the LRAS curve?
What is the effect of strong growth in business investment on the LRAS curve?
- It remains unchanged
- It shifts to the right (correct)
- It shifts to the left
- It becomes steeper
What factor can increase the productive capacity of a country by improving the quality of the labor force?
What factor can increase the productive capacity of a country by improving the quality of the labor force?
Which factor can cause a leftward shift in the short-run aggregate supply (SRAS) curve?
Which factor can cause a leftward shift in the short-run aggregate supply (SRAS) curve?
What is the impact of lower input prices on the SRAS curve?
What is the impact of lower input prices on the SRAS curve?
How do changes in expected future prices affect the SRAS curve?
How do changes in expected future prices affect the SRAS curve?
What happens to the interest rate when there is a rightward shift in the aggregate demand (AD) curve?
What happens to the interest rate when there is a rightward shift in the aggregate demand (AD) curve?
What happens to European exports when the euro weakens relative to other currencies?
What happens to European exports when the euro weakens relative to other currencies?
What happens to the AD curve in Japan when there is rapid GDP growth in ASEAN member countries?
What happens to the AD curve in Japan when there is rapid GDP growth in ASEAN member countries?
What effect does a decline in the growth rates of ASEAN members' economies have on the Japanese economy?
What effect does a decline in the growth rates of ASEAN members' economies have on the Japanese economy?
What happens to interest rates when there is an increase in the money supply?
What happens to interest rates when there is an increase in the money supply?
Which of the following is true about an inflationary gap?
Which of the following is true about an inflationary gap?
What happens when the aggregate demand curve shifts to the right?
What happens when the aggregate demand curve shifts to the right?
Which of the following is an implication of an increase in aggregate demand resulting in an inflationary gap?
Which of the following is an implication of an increase in aggregate demand resulting in an inflationary gap?
What is stagflation?
What is stagflation?
According to Exhibit 16, what effect does an increase in the cost of natural resource inputs have on the LRAS curve?
According to Exhibit 16, what effect does an increase in the cost of natural resource inputs have on the LRAS curve?
In the AD and AS model, equilibrium occurs when
In the AD and AS model, equilibrium occurs when
What happens when the price level is above the equilibrium price level in the AD and AS model?
What happens when the price level is above the equilibrium price level in the AD and AS model?
What type of macroeconomic equilibrium occurs when the economy operates at potential real GDP?
What type of macroeconomic equilibrium occurs when the economy operates at potential real GDP?
Which of the following is NOT a possible cause of a recession according to the text?
Which of the following is NOT a possible cause of a recession according to the text?
What is the recessionary gap?
What is the recessionary gap?
What is the main difference between the automatic self-correcting mechanism and government action in returning the economy to full employment?
What is the main difference between the automatic self-correcting mechanism and government action in returning the economy to full employment?
What is the suggested investment strategy in an economic slowdown caused by a decline in aggregate demand?
What is the suggested investment strategy in an economic slowdown caused by a decline in aggregate demand?
During the stagflation period in the mid-1970s and early 1980s, both unemployment and inflation soared. What was the main cause of this problem?
During the stagflation period in the mid-1970s and early 1980s, both unemployment and inflation soared. What was the main cause of this problem?
What happened to the price of oil in 1973?
What happened to the price of oil in 1973?
What was the impact of higher energy prices on the SRAS curve?
What was the impact of higher energy prices on the SRAS curve?
What was unusual about the recession in the mid-1970s?
What was unusual about the recession in the mid-1970s?
What was the impact of the Federal Reserve's decision to tighten monetary policy during the stagflation period?
What was the impact of the Federal Reserve's decision to tighten monetary policy during the stagflation period?
When did the global recession caused by higher oil prices occur?
When did the global recession caused by higher oil prices occur?
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