Supply-side inflation is caused by: OPTIONS: an increase in aggregate demand and no change in aggregate supply. a decrease in aggregate supply and no change in aggregate demand. an increase in aggregate supply and no change in aggregate demand decrease in aggregate demand and no change in aggregate supply.
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Supply-side inflation is caused by:
OPTIONS:
an increase in aggregate demand and no change in
a decrease in aggregate supply and no change in aggregate demand.
an increase in aggregate supply and no change in aggregate demand
decrease in aggregate demand and no change in aggregate supply.
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- If investment as a fraction of GDP rose substantially and then stayed at a high level, what would be the effect on aggregate supply over time? It will shift both the SRAS and LRAS right. It will shift the SRAS right, but not the LRAS. It will shift the LRAS to the left, but not the SRAS. It will shift both the SRAS and the LRAS left.which one is true Demand‑pull inflation is caused by a decrease in short‑run aggregate supply to an equilibrium point below full employment. an increase in aggregate demand to an equilibrium point below full employment. a decrease in short‑run aggregate supply to an equilibrium point beyond full employment. an increase in aggregate demand to an equilibrium point beyond full employment. Cost‑push inflation is caused by an increase in aggregate demand to an equilibrium point beyond full employment. an increase in aggregate demand to an equilibrium point below full employment. a decrease in short‑run aggregate supply to an equilibrium point beyond full employment. a decrease in short‑run aggregate supply to an equilibrium point below full employment.Complete the sentences with the correct term. Some options can be used more than once, and some may not be used at all. Cost-push inflation occurs when decreases until equilibrium output falls below the full employment level. Answer Bank As a result, the increases. aggregate price level One possible cause of cost-push inflation is an increase in imports cost of inputs To combat falling aggregate output, the government may introduce policies to increase short-run aggregate supply to where it and short-run aggregate supply intersect aggregate output at the same point. cost-push inflation These policies cause to return to its full employment level, aggregate demand long-run aggregate supply and the increases even further.
- Cost-push inflation occurs when the: aggregates demand curve shifts leftward while the aggregate supply curve is fixed. aggregate demand curve shifts rightward while the aggregate supply curve is fixed. aggregate supply curve shifts rightward. aggregate supply curve shifts leftward while the aggregate demand curve is fixed.An increase in the money supply will increase aggregate supply. increase aggregate demand. decrease aggregate supply. decrease aggregate demand.Assuming prices are sticky in the short run, a decrease in useful government spending will cause inflation to __________ in the short run and growth to ___________ in the short run. remain unchanged/decrease increase/increase decrease/increase decrease/decrease remain unchanged/remain unchanged
- The CPI in Mexico has been increasing consistently recently. A change in expectations that reflects this trend results in a movement along(a movement along, an upward shift in , a downward shift in, no change)the short-run aggregate supply curve, (a movement along, an upward shift in , a downward shift in, no change) in the long-run aggregate supply curve, (a movement along, an upward shift in , a downward shift in, no change) in the aggregate demand curve, (a movement along, an upward shift in , a downward shift in, no change) in the short-run Phillips curve, and (a movement along, an upward shift in , a downward shift in, no change) in the long-run Phillips curve.The graph shows an aggregate demand curve. Draw a curve that shows the effect on aggregate demand of an increase in the expected future inflation rate. Label it. 140- 130- 120- 110- 100- 90- Price level (GDP deflator, 2009=100) AD 99 80+ 11.0 11.5 12.0 12.5 13.0 13.5 14.0 14.5 15.0 Real GDP (trillions of 2009 dollars)on 5 of 25 > Classify the statements as true or false by placing them in the correct category. True Deflation often results in a decrease in aggregate demand. Answer Bank Deflation is a theoretical possibility but almost never occurs. Deflation is when the rate of inflation decreases. Answer Bank False Deflation occurs when the aggregate price level falls. Deflation does not affect people in the economy uniformly. Some people are made better off and others are made worse off.
- In which of the following situations will demand pull inflation fall? a) Rising aggregate supply b) Reduced taxes c) Rising incomes d) Decreased imports e) Aggregate demand rising with aggregate supply lagsInflation does not affect all prices equally. This ragged inflation causes relative-price variability, and consumer decisions Question 33 options: are distorted and the ability of markets to efficiently allocate factors of production is impaired. are distorted, but markets are still able to efficiently allocate factors of production. are not distorted, but the ability of markets to efficiently allocate factors of production is impaired. are not distorted and markets are still able to efficiently allocate factors of production.Demand–pull inflation occurs when increases until equilibrium output exceeds the full employment level.