Diagrammatically represent the effect on the price level and real GDP in the short run of each of the following : a. An increase in wealth b.an increase in wage rates C. An increase in labour productivity
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Diagrammatically represent the effect on the price level and real
a. An increase in wealth
b.an increase in wage rates
C. An increase in labour productivity
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- If the countries that export oil (OPEC) to the rest of the world decide to increase the price per barrel of oil, explain what impact the increase in the price level will have on the following: -Maritime and land transportation of products. -Consumer goods and services -The electric energyUsing aggregate demand and aggregate supply, graph the effects on the price level and GDP of each of the following. Draw a large graph and label all axes, initial and final equilibrium points, direction of shift if any, all curves and lines, equilibrium values on the x- and y-axes. State the conclusion in words. a. A cut in income taxes b. An increase in military spending c. A drop in export demand by foreign purchasers d. An increase in imports e. A decline in business investment spendingSuppose the people of Canada has reduced their spending on goods and services from the United States. What will be the effect on real GDP and the price level in the short run? In the long run? Show your results graphically.
- In the short run, what is the impact on the price level and the level of the real GDP of each of the following changes. Analyze graphically and explain. a) an increase in the amount of government regulation firms are subjected to b) a decrease in the average level of prices in Canada c) a decrease in the level of government spending on education and healthBased on the graph, a decrease in ________ could cause the economy to move from Point A to Point B. a. the price level b. consumer confidence c. the labor force participation rate d. wages e. taxes on consumersIn 2020, the Venezuelan economy posted that their country’s GDP increased but the level of final products produced is unchanged. There were no new industries there and the same level of output is produced compared to 2019. What can be the explanation for this? a. An increase in import b. An increase in price level c. A decrease in the price level d. And increase in employment
- Which of the following events increases aggregate supply? A. A decrease in potential GDP B. A rise in the price level C. A fall in the money wage rate D. A fall in the price levelIf the price level in the economy goes up while all other factors affecting the economy remains the same,briefly explain how this increase in P will reduce C, I and NX.The graph to the right shows an economy's aggregate demand curve. Show the determination of the economy's long-run macroeconomic equilibrium by (i) using the Line tool to draw and label the long-run aggregate supply curve to show an equilibrium and (ii) using the Point tool to identify the equilibrium point. Label this point E. Price level Real GDP AD E
- Price in Quantity in Price in Product Quantity in Price in Quantity in 2009 2009 2019 2019 2020 2020 A 10 8 12 10 13 14 B 6 13 8 9 9 20 C 14 17 17 17 17 21 D 13 11 14 10 13 13 The table above shows the quantities of Goods A-D produced and their prices in 2009, 2019 and 2020. The base year is 2009. Calculate the economic growth rate in 2020. (Enter your answer as a percentage rounded to 2 decimal places. Do not put the percent sign.) Your Answer: AnswerWhich of the following would cause an increase in the price level in the long run? Choose one:A. Natural resources increase. B. Net exports decrease. C. There is a temporary increase in the price of oil. D. Investment increases. E. The number of workers in the labor force increases.Assume that the United States is currently in a recession. a. Draw a correctly labelled graph of aggregate demand and aggregate supply showing each of the following in the United States: i. Output level ii. Price level A