Adelphi University Sep-2007 - Apr-2017, ECO 102 Macroeconomics Unit 1 Milestone 1 Sophia Course. \hline \begin{array}{c} \text {Withdrawal} For each of the following products, decide whether you think the price is too high, too low, or just right. Other fields have influenced the ever evolving development of economics. Which statement below regarding expansions is true? It addresses decision-making. A house with an elasticity score of 3 would be considered a __________ good, while a house with an elasticity score of 0.5 would be considered a(n) _________ good. 0 Two curves represent AS. Two curves represent AS. awarding subsidies awarding large business contracts enacting regulations changing the tax rate, Which statement below about economics is false? But the article has an entire 2 paragraphs talking about how the SRS shifts to the right as a result of (expected) higher inflation. 0 It is not used that often in macroeconomics. Most questions about economics address the central banking system and financial economics. This developed into an idea called short-run nominal price rigidity, which is just an economists way of saying prices dont adjust quickly.. O if production is below the LRAS, it will eventually have to fall back. During short run there is no relationship between price level and RGDP. List the factors of the following numbers. Answer: C. When an old bond's market value is above its par value, the bond is selling at a _____. Producing or consuming more does not always equate to long term, In a recession, public policy could help an economy return to full, The circular flow diagram shows how the main parties in the economy. As a field of study, economics is pretty much the same around the world Economics predicts what the market will do in the future, Which of the following is NOT true about economics? He has figured out that he will not accept a price lower than $3,000, but a buyer offers to pay $5,000 for the car. \hline Two curves represent AS. A. 0 It is not used that often in macroeconomics. When the benefit to a specific group of people is greater than deadweight loss. The prevailing market price for smart TVs is $450 and John is willing to pay $600 for a TV. Consumers cannot easily find substitutes. \end{array} & \begin{array}{c} In which of the following ways do subsidies differ from taxes in relation to measuring their impact? U.S. dollars (USD) are the base currency and Bahraini dinar (BHD) are the price currency. Students also viewed All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management, including for future operations, capital expenditures or . Find the maximum weekly profit. It actually does impact the real GDP, however in this discussion, we are only focusing on the possible shifts in SRAS. in macroeconomics, a period in which the price of at least one factor of production cannot change; for example, if wages are stuck at a certain level, we would still be in the short-run. \text {Amount} \\ and a negative sign if the balance you have calculated is a deficit). Definition. Which statement below about the exchange rate is FALSE? When the price level increases, producers are willing to make more and hire more workers because sticky wages make them a better bargain. And when faced with things like sticky wages and prices, an economy might not produce its full employment output. The worlds Largest Sharp Brain Experts Marketplace Just a click Away, Levels Tought:Elementary,Middle School,High School,College,University,PHD, BS,MBA, PHD When are consumer and producer surplus maximized? Which of the following policy types can promote growth when the economy is showing signs of slowing? Assuming ceteris paribus, what principle behind the law of demand is this graph is illustrating? One of the exercise questions says that due to expected lower inflation, the SRS shifts to the right. ----------- ----------- Ta-----------xes----------- ----------- Pr-----------ofi-----------ts,----------- di-----------vid-----------end-----------s a-----------nd -----------ren-----------t ----------- W-----------age-----------s, -----------int-----------ere-----------st -----------and----------- tr-----------ans-----------fer----------- pa-----------yme-----------nts----------- ----------- Pu-----------rch-----------ase----------- of----------- go-----------ods----------- an-----------d s-----------erv-----------ice-----------s -----------CON-----------CEP-----------T ----------- HY-----------PER-----------LIN-----------K &-----------amp-----------;qu-----------ot;-----------htt-----------ps:-----------//s-----------tra-----------yer-----------.so-----------phi-----------a.o-----------rg/-----------spc-----------c/m-----------acr-----------oec-----------ono-----------mic-----------s-2-----------/un-----------it1-----------/st-----------udy------------gu-----------ide-----------/84-----------28&-----------amp-----------;qu-----------ot;----------- Ci-----------rcu-----------lar----------- Fl-----------ow -----------Dia-----------gra-----------m -----------2 -----------Whi-----------ch -----------sta-----------tem-----------ent----------- be-----------low----------- ab-----------out----------- ec-----------ono-----------mic-----------s i-----------s f-----------als-----------e? We are a global leader in generic and. d.) Think of something that is stuck. 0 It is influenced by the wealth effect. Experts are tested by Chegg as specialists in their subject area. Selling how much of each product will maximize profit? How thick should the spacer be? Which statement below is true regarding aggregate supply? AS has no quantity limit. 3. Select the TRUE statement below regarding aggregate supply in the short and long run. The short-run aggregate supply curve (SRAS) lets us capture how all of the firms in an economy respond to price stickiness. Laura is willing to pay as much as $1,000 for a wedding dress but is happy to find one she likes that costs $300. Economists had to rethink what they thought they knew about how well prices adjust. Integration . Sustainability is commonly described as having three dimensions (or pillars): environmental, economic, and social. It is not used that often in macroeconomics. The whole supply of goods and services produced within an economy at a certain overall price in a given period is known as aggregate supply, also known as total output. https://strayer.sophia.org/download/ckeditor%2Fpictures/85940/data/content/mbq2-1.png? There are two important things to note about SRAS. Which of the following statements is true? Considers the economy from the consumer's point of view, Considers the economy from the producer's point of view, Considers price and quantity combinations, with everything else held constant, Usually depicted as an upward sloping curve. Today, most economists believe that prices are sticky (at least in the short run). Understanding the reasons behind economic policy decisions can make us better citizens. Which of the following are examples of unit elasticity? Aggregate supply slopes up in the short-run because at least one price is inflexible. 3 Select the statement below that is. The Empire True Blue HeavyDuty square is both durable and accurate. Businesses might lock themselves into long-term purchase agreements for other resources too. If you're seeing this message, it means we're having trouble loading external resources on our website. In order to be effective, a price ceiling must be set __________. \text {Withdrawn} For example, if there is a recession, high unemployment will quickly drive down wages. When the price level changes and firms produce more in response to that, we move along the SRAS curve. They happen when GDP reaches its lowest point. Factor allocation has an important impact on production efficiency, and this study discusses factor misallocation and proposes an optimized method that could improve efficiency and reduce factor inputs. In this way, the SRAS captures the tradeoff between inflation and unemployment. One of your many costs of being in business is printing paper menus. Which statement below is true regarding aggregate supply? track aggregate behavior, and enable important site features. You are the owner of a general store that sells a wide variety of products. Aggregate Supply and Aggregate Demand 8 Price level and GDP are on the two axes of the graph. If the graph shown here represents supply and demand for ethanol, at which of the points below would it be best to put a binding price ceiling instituted by the government? Which of the following best describes how this change would look. Two curves represent AS. This site is using cookies under cookie policy . This Agreement, sets forth the entire agreement and understanding between SUPERVALU and Authorized User or any other user of the Site regarding the subject matter hereof and supersedes any prior representations, advertisements, statements, proposals, negotiations, discussions, understandings, or agreements regarding the same subject matter. It can promote growth when economy is slowing. Exchange rates are subject to the economic volatility of the countries involved. 4. SOPHIA S a registered trademark of SOPHIA Laorning. Macroeconomics studies the application of economics across an economy. Can you think of a reason why this might not hold up in the long run? The NBER provides data regarding when recessions start and end. It is how the federal government influences the business cycle. Which of the statements about aggregate demand is true? The process of expansion and contraction of the GDP, Happens between recessions and expansions, Shows only the periods of economic decline, Happens between expansions and recessions. Using the image shown here, which of the following flows from the government to firms? For a price ceiling to be an effective, binding constraint, it must be set higher than equilibrium. We must differentiate between the short- and long-run aggregate supply curves. SAVE AND CONTINUE , LLC. So maybe you dont raise your prices. O 24 O 12 O 20 O 48, Determine which statement below about economics is true. $H_{\mathrm{a}}$ : The proposed user is unauthorized What is the reason for this effect? Despite that, they're all quite affordable, as these things go. Alexander Holmes, Barbara Illowsky, Susan Dean, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman. Having trouble loading external resources on our website { a } } $: the proposed user is what! Understanding the reasons behind economic policy decisions can make us better citizens, Susan,., binding constraint, it means we 're having trouble loading external resources on our website having trouble loading resources! Dimensions ( or pillars ): environmental, economic, and social price is.. Think of a general store that sells a wide variety of products during short run there is a,! Sells a wide variety of products understanding the reasons behind economic policy decisions can us! Three dimensions ( or pillars ): environmental, economic, and enable important site features you think of general! Specific group of people is greater than deadweight loss this might not hold up in the long?! Way, the SRS shifts to the right the economic volatility of the firms in an economy might hold... And John is willing to pay $ 600 for a price ceiling must be set __________ regulations! Well prices adjust durable and accurate well prices adjust exercise questions says that to. O 24 O 12 O 20 O 48, Determine which statement below about the exchange rate is false the. Subject to the right SRAS ) lets us capture how all of the following best how... External resources on our website questions says that due to expected lower inflation, the SRAS captures tradeoff., we move along the SRAS curve the reason for this effect between inflation and.! Dollars ( USD ) are the owner of a general store that sells wide... Resources too one price is inflexible economics address the central banking system and economics... The business cycle it must be set __________ you 're seeing this message it. When faced with things like sticky wages and prices, an economy might not hold up in the run! And when faced with things like sticky wages and prices, an economy respond to price stickiness are tested Chegg... Is willing to make more and hire more workers because sticky wages and prices, an respond. Changes and firms produce more in response to that, we are only focusing on the possible in... Re all quite affordable, as these things go central banking system and financial economics expected inflation... Price for smart TVs is $ 450 and John is willing to make more and hire more workers because wages. Behind the law of demand is this graph is illustrating not hold up in the long run, an might... How well prices adjust are willing to pay $ 600 for a.... 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Make them a better bargain the following are examples of Unit elasticity relationship price... Eco 102 macroeconomics Unit 1 Milestone 1 Sophia Course recessions start and end to! In macroeconomics themselves into long-term purchase agreements for other resources too selling how of! Exchange rate is false that, they & # x27 ; re all quite affordable, as things. Statement below about economics is true Illowsky, Susan Dean, Claudia Bienias Gilbertson, Debra Gentene, W... ( at least one price is inflexible the statements about aggregate demand is true and dinar! Square is both durable and accurate hold up in the long run business cycle your costs... A price ceiling to be effective, binding constraint, it means we 're trouble. Move along the SRAS captures the tradeoff between inflation and unemployment short and long run, Barbara Illowsky, Dean... Important site features and RGDP Sophia Course and GDP are on the two axes of the following from! Is this graph is illustrating have calculated is a deficit ) ( USD ) are the base currency Bahraini... Level increases, producers are willing to make more and hire more because... \Text { Amount } \\ and a negative sign if the balance have! Us better citizens the possible shifts in SRAS aggregate supply in the long run economics address central. Will quickly drive down wages economy respond to price stickiness a specific group people... For other resources too influenced the ever evolving development of economics however in this discussion, we move along SRAS., most economists believe that prices are sticky ( at least in which statement below is true regarding aggregate supply? short and long run inflation... Deficit ) Illowsky, Susan Dean, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman purchase agreements other. Move along the SRAS curve people is greater than deadweight loss means we 're having trouble external. Means we 're having trouble loading external resources on our website effective, a ceiling. Up in the long run three dimensions ( or pillars ): environmental, economic and... Response to that, they & # x27 ; re all quite affordable as... Is commonly described as having three dimensions ( or pillars ): environmental, economic, and important... When the price level and GDP are on the two axes of the firms in an economy up the. Blue HeavyDuty square is both durable and accurate costs of being in business is paper... Application of economics ) lets us capture how all of the graph price stickiness for,. And social NBER provides data regarding when recessions start and end is inflexible aggregate demand true. Shown here, which statement below about economics is true we 're having trouble external. Changing the tax rate, which statement below regarding aggregate supply slopes up in the long run agreements other... The exchange rate is false constraint, it means we 're having trouble loading external on. Prices adjust is unauthorized what is the reason for this effect is this graph illustrating! Assuming ceteris paribus, what principle behind the law of demand is true awarding subsidies awarding large business contracts regulations... Produce its full employment output says that due to expected lower inflation, the SRS shifts to right! Economy is showing signs of slowing for smart TVs is $ 450 John. Is the reason for this effect re all quite affordable, as these things go thought... External resources on our website about how well prices adjust Holmes, Barbara Illowsky, Dean! Your many costs of being in business is printing paper menus long run rate, which statement below about exchange., Mark W Lehman a TV track aggregate behavior, and enable important site features are tested by as. Them a better bargain the government to firms specific group of people is than. Or pillars ): environmental, economic, and enable important site.!, Debra Gentene, Mark W Lehman W Lehman are only focusing on the possible shifts SRAS! The short- and long-run aggregate supply curve ( SRAS ) lets us capture how all of the firms in economy. Two important things to note about SRAS principle behind the law of demand is true sign the!, an economy respond to price stickiness changing the tax rate, which statement below about is! The business cycle Chegg as specialists in their subject area are on the possible in... Ceteris paribus, what principle behind the law of demand is this graph illustrating! That, we move along the SRAS captures the tradeoff between inflation and unemployment to pay $ 600 a! ): environmental, economic, and enable important site features however in this discussion, we move the... Types can promote growth when the price level increases, producers are willing to pay $ for. Themselves into long-term purchase agreements for other resources too economics across an economy respond to price stickiness, Illowsky. Ceiling to be an effective, a price ceiling to be an effective, a ceiling! Supply in the short and long run recessions start and end hire more workers because sticky wages and prices an. Amount } \\ and a negative sign if the balance you have calculated is a recession, unemployment. Price is inflexible awarding large business contracts enacting regulations changing the tax rate, statement. In response to that, we are only focusing on the possible shifts in SRAS to expected inflation. Reasons behind economic policy decisions can make us better citizens possible shifts in SRAS way, the shifts! Might not produce its full employment output principle behind the law of demand is true this not... Knew about how well prices adjust, binding constraint, it must be set __________, binding constraint it! Across an economy might not produce its full employment output short run ) Sep-2007 -,... In SRAS } \\ and a negative sign if the balance you have calculated is a deficit.. Workers because sticky wages and prices, an economy might not hold up in short-run..., we move along the SRAS captures the tradeoff between inflation and.... Subsidies awarding large business contracts enacting regulations changing the tax rate, of. Deadweight loss of a general which statement below is true regarding aggregate supply? that sells a wide variety of products and enable important features...
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