Log in
Economics
1
answer
0
watching
61
views

A rightward shift in the aggregate demand curve with a horizontal aggregate supply curve will cause employment and the price level to change in which of the following ways?

    Employment     Price Level
A. Increase          Increase
B. Increase          Decrease
C. Increase          No change
D. Decrease         No change
E. No change       No change

Watch
1
answer
0
watching
61
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Vaishnavi Kanukurti
Vaishnavi KanukurtiLv10
22 Sep 2020

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

Suppose an economy is in long-run equilibrium. An increase in consumption expenditure will:

A) decreases both the price level and the real gross domestic product in the long run.

B) increase the price level in the long run but have no effect on real gross domestic product.

C) shift the short-run aggregate supply curve rightward and increase both the price and real output in the long run.

D) shift the aggregate demand curve rightward and increase the real output in the long run.

Other things equal, what effect will each of the following have on the equilibrium price level and level of real output?

a. An increase in aggregate demand in the steep portion of the aggregate supply curve.

b. An increase in aggregate supply, with no change in aggregate demand (assume that prices and wages are flexible upward and downward).

c. Equal increase in aggregate demand and aggregate supply.

d. A reduction in aggregate demand in the relatively flat portion of the aggregate supply curve.

e. An increase in aggregate demand and a decrease in aggregate supply.

Which of the following would cause a rightward shift in the short-run aggregate supply curve?
 
A. An increase in the price level.
B. A technological advance.
C. An increase in interest rates.
D. A decrease in inflation expectations.

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in