Which of the following would affect both short-run and long-run aggregate supply?

a. a supply shock

b. menu costs

c. money illusion

d. technological change

e. a change in the general price level

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Alice SejakeLv10

23 Jan 2021

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Related questions

1. The government engages in more deficit spending. Ceteris paribus (all else equal), this would cause:

a. Both the demand and supply of loanable funds decrease.

b. The demand for loanable funds to increase.

c. Both the demand and supply of loanable funds to increase.

d. Economic institutions to collapse.

e. The supply of loanable funds to increase.

2. A technological advance leads to a shift in:

a. Neither short-run nor long-run aggregate supply.

b. Only short-run aggregate supply.

c. Both short-run and long-run aggregate supply.

d. Only aggregate demand.

e. Only long-run aggregate supply.

redgoat260

For each of the following scenarios, say whether the shock was a demand-side shock, a supply-side shock, or a combination of both shocks.

a. The price level and GDP both fell. GDP then increased, but the price level fell even further.

The shock was a (supply-side shock OR combination of both shocks OR demand-side shock)

b. In the long run, the economy had the same level of output but a higher price level.

The shock was a (supply-side shock OR combination of both shocks OR demand-side shock)

c. In the short run, the price level increased, but GDP fell.

The shock was a (supply-side shock OR combination of both shocks OR demand-side shock)

d. In the long run, GDP increased, and the price level fell.

The shock was a (supply-side shock OR combination of both shocks OR demand-side shock)

e. In the long run, GDP increased, and the price level was constant.

The shock was a (supply-side shock OR combination of both shocks OR demand-side shock)