prorided in Figune 12.2 belour to ansier the questions that AS Price level,P AD

Question

prorided in Figune 12.2 belour to ansier the questions that AS Price level,P AD AD AD AD AD AD Aggregate output (income), 0 Figure 12.2 20) Refer to Figure 12.2 The tax multiplier is smallest (in absolute value) when the aggregate curve shifts from A) AD to AD2 B) AD3 to AD4 D) The output multiplier is the same for all AD curve shifts shown in the figure. Refer to the information provided in Figure 12.3 below to ansver the questions that follow. AS2 ASI ASo AD Aggregate output Figure 12.3 21) Refer to Figure 12.3 Cost-push inflation occurs if A) the economy moves from Point A to Point B on aggregate supply curve AS1. B) the aggregate supply curve shifts from AS1 to ASo the aggregate supply curve shifts from AS1 to AS2. D) the economy moves from Point A to Point C on the aggregate supply curve AS

Explanation / Answer

20. Option C

Since the change in output or aggregated demand is less when compared with others

21. Option C

With the increase in price levels the supply decreases as the input costs increases leading to decrease in supply but increased output in terms of price.

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.