You are watching: Which of the following are views new classical macroeconomists hold?
True or false? The aggregate demand also curve slopes downward once a lower price level provides US exports less expensive, thereby enhancing net exports.
True or false? The aggregate demand curve slopes downward when a lower price level makes imports from other nations less expensive, and also US citizens buy more imports.
True or false? The aggregate demand also curve slopes downward once a lower price level rises the genuine wealth of households, thereby boosting family usage.
Increases in households" expectations of their future incomes will make the accumulation demand also curve shift
as price rises, customer genuine riches declines, interemainder prices climb, and exports become even more expensive
TRUE or FALSE? It"s simple to understand why the accumulation demand curve is downward sloping: When the price level increases, consumers substitute right into much less expensive commodities, thereby decreasing full spending in the economic climate.
a curve that reflects the connection in between the price level and the amount of actual GDP demanded by families, firms and the federal government.
The international profession impact describes the fact that a boost in the price level will outcome in
transforms in the price level perform not affect potential GDP, as potential GDP depends on the size of the labor force, resources stock, and technology
True or false? The brief run accumulation supply curve slopes upward because in the brief run, an unexpected change in the price of a vital reresource have the right to change the expense to firms.
True or false? The brief run aggregate supply curve slopes upward bereason in the short run, prices of final goods and services change progressively due to the existence of food selection prices.
True or false? The short run accumulation supply curve slopes upward because in the short run, as prices of last products and services rise, input prices react even more slowly.
True or false? The brief run aggregate supply curve slopes upward bereason in the brief run, as prices of final goods and also solutions rise, some firms are incredibly sluggish to readjust their prices, hence their sales rise.
There is a rise in the quantity of funding items.Due to the fact that this is a readjust in ____, the LRAS will _____
incorrect since changes in the meant price level affect brief run aggregate supply however not the lengthy run aggregate supply
"the economy"s potential to supply items and also services is figured out by such things as labour force and also capital stock, and inflation expectations"This list of the components of potential GDP is
Suppose that workers and also firms could always predict following year"s price level through perfect accuracy. Under these situations the SRAS curve
earnings climb as soon as the prices of products and solutions firms offer increase more quickly than the prices they pay for inputs
(all of the above) food selection prices make some prices sticky, contracts between employees and firms make some weras and prices sticky, & firms are often slow to adjust wages
Why does the failure of employees and firms to accurately predict the price level bring about an upward sloping accumulation supply curve?
a sudden rise in the price of a critical herbal resource, leading to a leftward shift of the SRAS curve
rises the price level and also actual GDP past potential GDP/the economic situation back to potential GDP but the price level remains higher
In the brief run, an increase in aggregate demand ______, whereas in the lengthy run, an automatic device brings _____.
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In 1969, actual real GDP was better than potential actual GDP. Which of the adhering to best describes this?
Even though the actual GDP in 1970 was slightly greater than actual GDP in 1969, the joblessness price raised substantially from 1969 to 1970. Which of the adhering to defines how unemployment can have enhanced even though output did not change?
If the inflation rate for 1970 is greater than the inflation price for 1969, it is likely that the recession was brought about by _____ fairly than _____
If the economic climate is initially at complete employment equilibrium, then a rise in accumulation demand causes ____ in genuine GDP in the brief run and ____ in the price level in the lengthy run.
In the dynamic accumulation demand and also accumulation supply version, if accumulation demand also increases quicker than potential actual GDP, tright here will be _____
In the dynamic accumulation demand also and also accumulation supply design, if aggregate demand also increases sreduced than potential actual GDP, there will be ____
(all of the above) the end of the real estate bubble, rapid increase in the price of oil, the financial crisis
a rise in the demand for real estate based upon the expectation that prices will proceed to increase