Lras Study guides, Revision notes & Summaries

WGU D089 Principles of Economics – TESTS Already Passed Which type of economy is characterized by a government that plans and controls all economic activity? Command Correct! A command economy is a centralized economic system in which all economic decisions are made by the nation's government. What is an example of a normative economic statement? Marginal tax rates should be lowered on high-income individuals. Correct! A marginal tax rate is the amount of money an individual pays in taxes o...

Sophia (Macroeconomics) - Unit 2 Milestone Which statement below is NOT a reason why the aggregate demand curve slopes downward? ANSAs the price level falls, consumption and investment decrease. Which of the following would be true if demand became more inelastic? ANSThe consumer will receive more of the benefit of the subsidy. George wants to get rid of his old car so he can purchase a newer model. He has figured out that he will not accept a price lower than $3,000, but a buyer offers t...

Sophia Marcoeconomics Milestone 4 1 Which statement below regarding the stagflation of the late 1970s/early 1980s is true? The Phillips curve represented the state of the economy at the time. Expansionary fiscal policies succeeded in lowering the unemployment rate. Expansionary fiscal policy led to double digit inflation. Disruptions in the oil supply caused the LRAS curve to move to the left. CONCEPT Pros and Cons of Monetary and Fiscal Policy 2 Which of the following would be true o...

Macro 15Macro 15m for Gabe Xx Exam With Complete Solutions 2024 Price stability relates to an absence of volatility in the inflation rate. In the UK the Bank of England is charged with the responsibility of achieving price stability by ensuring the inflation rate remains around 2% over the medium term. Unemployment relates to the number of people who are willing and able to work at existing wages rates but cannot find a job. LRAS DIAGRAM AD out As the economy grows from y1 to y1 th...

Sophia (Macroeconomics) - Unit 2 Milestone Which statement below regarding aggregate demand is true? CORRECT ANSWER- It expresses an inverse relationship between price level and RGDP. If demand becomes more elastic, which of the following will happen, as demonstrated by the graph shown here? CORRECT ANSWER- The incidence of the subsidy on the consumer will decrease. Select the statement below that is true of long run aggregate supply curves. CORRECT ANSWER- There is no relations...

Sophia Marcoeconomics Milestone 2 1 Select the TRUE statement below regarding aggregate supply in the short and long run. In the long run, there are no limits on production. The relationship between price level and RGDP is negative in the short run. The LRAS curve can move over time. In the long run, there is a close relat

Econ Test 3 questions and answers 100% correct Which person can be categorized as a discouraged worker? Candy Kane worked at Mama's Used Cars until two months ago. She is trying to find work in her dream profession as a chocolatier. Andy Friese was formerly employed at Mama's Used Cars. He has not worked there for six months and has given up looking for work. Dan Druff currently works at Mama's Used Cars. He expects to be laid off in two weeks. Mildred Ender currently works for M...

AP Macroeconomics Exam with Complete Solution 2023 aggregate demand curve - a curve depicting the relationship between real GDP demanded (i.e., expenditures) and the price level in the economy; the aggregate demand curve slopes downward from left to right. aggregate supply curve - a curve defining the relationship between real production and price level. business cycles - fluctuations in real GDP around the trend value; also called economic fluctuations. consumer surplus - the differ...

AP Macroeconomics Exam Review Questions and Answers A Score 1. Movement on Short-Run Phillips Curve: Shift in AD (graph move opposite direction) 2. Shift of Short-Run Phillips Curve: Shift in SRAS (shift is in oppo 3. Factors of Production: 1. Land 2. Labor 3. Capital 4. Technology 4. Shifters of Demand for Loanable Funds: 1. Incentive to Invest 2. Contractionary Fiscal Policy (to the right) 5. Shifters of Supply of Loanable Funds: 1. Incentive to Save 2. Monetary Policy 3. Expansio...

AP Macroeconomics Final Exam Questions and answers A Level What is the most fundamental issue that economics addresses? - Use of scarce resources Inflation occurs when there is a sustained increase in - average price level An increase in spending in an economy will cause a multiplied increase in GDP because - consumption increases as income increases A contraction in the money supply will most likely change the nominal interest rate and aggregate demand in what way in the short run?...