In the long-run, the aggregate supply is affected only by capital, labor, and technology. Examples of events that would increase aggregate supply include
an increase in population, increased physical capital stock, and technological progress
.
Which of the following would cause a increase in aggregate demand?
Which of the following will cause an increase in aggregate demand? –
a decrease in the price level
, which increases exports.
Which of the following would cause an increase in aggregate supply?
A shift in aggregate supply can be attributed to many variables, including changes in the size and quality of labor, technological innovations,
an increase in wages
, an increase in production costs, changes in producer taxes, and subsidies and changes in inflation.
What 3 things can cause an increase in aggregate supply quizlet?
- change in input prices (domestic resource prices, prices of imported resoures)
- change in productivity.
- change in legal-institutional environment (business taxes and subsidies, government regulations)
Which of the following will increase aggregate demand quizlet?
Which of the following will increase aggregate demand?
rising nominal wages
. an increase in aggregate supply. the equilibrium general price level to fall and equilibrium real gross domestic product to rise.
What are the factors that affect aggregate supply?
A shift in aggregate supply can be attributed to many variables, including
changes in the size and quality of labor
, technological innovations, an increase in wages, an increase in production costs, changes in producer taxes, and subsidies and changes in inflation.
What happens when aggregate supply increases?
Aggregate supply is the total amount of goods and services that firms are willing to sell at a given price level. When capital increases,
the aggregate supply curve will shift to the right, prices will drop, and the quantity of the good or service will increase.
Which of the following would indicate that economic growth has occurred quizlet?
Which of the following would indicate that economic growth has occurred? The long run aggregate supply curve shifts to the right.
a decrease in aggregate supply
. Increase in which of the following is most likely to increase employment and promote long run economic growth?
Which of the following will cause an increase in consumption?
The correct option is (C).
An increase in disposable income
will cause a direct increase in consumption spending.
What is aggregate supply curve?
The aggregate supply curve
Aggregate supply, or AS, refers to
the total quantity of output
—in other words, real GDP—firms will produce and sell. The aggregate supply curve shows the total quantity of output—real GDP—that firms will produce and sell at each price level.
What causes increases in aggregate supply quizlet?
-Increase in money supply (Aggregate Expansion) will
increase Aggregate Demand
. -If US households buy more foreign goods, AD shifts down. -Exchange Rates (Foreign Depreciation, Foreign Growth Rates, Foreign Tariffs, etc.) -Supply Curve is upward sloping because at higher prices firms want to supply more.
What could causes a decreases in the aggregate supply quizlet?
An increase in the overall costs of production
will cause a decrease in short-run aggregate supply, causing a shift to the left.
Which would increase aggregate supply quizlet?
Which would most likely increase aggregate supply?
shift the short-run aggregate supply curve to the left
. increase per-unit production costs and shift the aggregate supply curve to the left. eventually rise and fall to match upward or downward changes in the price level.
What does aggregate demand represent quizlet?
Aggregate Demand.
the overall or total demand for all final goods and services produced in an economy
.
Which if the following will result in the greatest increase in aggregate demand?
Which of the following will result in the greatest increase in aggregate demand?
Government spending increases
.
Which of the following could cause the aggregate demand curve to shift right?
The aggregate demand curve, or AD curve, shifts to the right as the components of aggregate demand—
consumption spending, investment spending, government spending, and spending on exports minus imports
—rise. … If the AD curve shifts to the left, then the equilibrium quantity of output and the price level will fall.
