this is true or false: an increase in AS will result in more jobs for the economy as long as we are not at full employment output i understand an increase in AS will result in more jobs for the economy, but i dont understand the last part of the question. "as long as we are not at full employment output". doesnt the AS curve become vertical at Qfe? can you explain this for me? idk whether this is true or false.

this is true or false: an increase in AS will result in more jobs for the economy as long as we are not at full employment output i understand an increase in AS will result in more jobs for the economy, but i dont understand the last part of the question. "as long as we are not at full employment output". doesnt the AS curve become vertical at Qfe? can you explain this for me? idk whether this is true or false.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 61P: Table 24.4 describes Santhers economy. Plot the AD/AS curves and identify the equilibrium. Would you...

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Table 24.4 describes Santhers economy. Plot the AD/AS curves and identify the equilibrium. Would you expect unemployment in this economy to be relatively high or low? Would you expect prices to be a relatively large or small concern for this economy? Imagine that input prices fall and so AS shifts to the right by 150 units. Identify the new equilibrium. How will the shift in AS affect the original output, price level, and employment?
Refer to the figure to answer the following questions. Price level (P) OC OB. OA LRAS, LRAS2 OD. OE A B O E D SRAS₁ AD₁ Based on the figure, if the economy is initially at point B and new technology leads to an increase in labor productivity, then in the long run we will end up at point SRAS2 AD₂ Real GDP (Y)
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Assume that an economy operates according to the sticky-wage model. The nominal wagewas set to make labor supply and labor demand equal when the expected price levelequaled 120 (as measured by the consumer price index).a. Use a graph of the labor market to illustrate what happens to the quantity oflabor employed if the actual price level over the time period when wages arestuck equals 110.b. Use a graph of the production function to illustrate how the quantity of outputproduced changes if the actual price level equals 110 when the expected pricelevel is 120.c. Given the unexpectedly low price level, will this economy be operating above,below, or at the natural rate?
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The economy has shifted and the quantity of the real GDP supplied has increased. What has potentially happened to aggregate price levels? Potentially the price levels have increased to a higher aggregate price level and if the wages are sticky, businesses have hired more employees as labor has become cheaper. O Potentially the price levels have decreased to a lower aggregate price level and if the wages are sticky, businesses have hired more employees as labor has become cheaper. Potentially the price levels have increased to a higher aggregate price level and if the wages are sticky, businesses have fired some employees as labor has become too expensive.
Price Level LAS AS1 AD AS2 Real GDP Refer to the graph above to answer this question. If the economy was initially at point A, what would a movement to point B suggest? Select one: O a. The movement could be the result of an increase in nominal wages Ob. The movement could be the result of increased government spending. O c. The movement could be the result of an increase in aggregate demand. d. The movement could be the result of a decrease in the costs of production. O
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E MINDTAP Wage Rate 3 SL3 Su Su * T 5 L يا (a) Real GDP Labor (L) Q₁ . 3 Q=TLK) LMAS LHAS LHAS Price Level L Labor (L) 0 (b) Search Real GDP (c) Refer to Exhibit 17-4 Assume that the starting point in graphs (a) and (b) in Exhibit 17-4 is point 1. After a decrease in income taxes, there would be a which would cause a movement along the production function from point 1 to point The result would be a shift of the LRAS curve from LRAS; to. resulting in On rightward shift of the labor supply curve from SL1 to SL2: movement along the production function to point 3: LRAS): a shrinking economy O b. leftward shift of the labor supply curve from S1 to SL3; movement along the production function to point 3: LRAS); a shrinking economy O rightward shift of the labor supply curve from St1 to St.2: movement along the production function to point 2: LRAS2: economic growth O d. leftward shift of the labor supply curve from SL1 to SL3; movement along the production function to point 2. LRAS2, economic…