2) The shift to the right of the short-run aggregate-supply curve from SRAS to SRAS1*3 pointscauses the economy to experience an increase in the unemployment rate.could be caused by a policy allowing the easing of immigration laws for 2 years.could be caused by a decrease in the availability of oil.
Question
- The shift to the right of the short-run aggregate-supply curve from SRAS to SRAS1*3 pointscauses the economy to experience an increase in the unemployment rate.could be caused by a policy allowing the easing of immigration laws for 2 years.could be caused by a decrease in the availability of oil.
Solution
The shift to the right of the short-run aggregate-supply curve from SRAS to SRAS1 can be caused by various factors. Here are the step by step answers to your questions:
-
If the short-run aggregate supply (SRAS) curve shifts to the right, it generally indicates an increase in the total quantity of goods and services supplied at every price level. This shift does not directly cause an increase in the unemployment rate. In fact, it could potentially decrease the unemployment rate as more output could require more labor.
-
A policy allowing the easing of immigration laws for 2 years could cause the SRAS curve to shift to the right. This is because an increase in immigration can increase the labor force, which can increase the potential output of an economy. This increase in potential output would shift the SRAS curve to the right.
-
A decrease in the availability of oil could actually cause the SRAS curve to shift to the left, not the right. This is because oil is a key input in many production processes. If oil becomes less available, it becomes more expensive for firms to produce goods and services, which decreases the total quantity of goods and services supplied at every price level. This decrease in supply would shift the SRAS curve to the left.
Similar Questions
The SRAS curve is upward sloping because ___________. in the short run, nominal wages and input costs are sticky in the long run, nominal wages and input costs are sticky in the short run, real wages and input costs are sticky in the long run, real wages and input costs are flexible in the short run, both real and nominal wages are flexible
Consider a standard AD-AS model. If the SRAS curve is steep, a temporary tax cut leads to a relatively small increase in inflation and relatively large decrease in unemployment. Group of answer choicesTrueFalse
The short-run aggregate supply (SRAS) curve is upward-sloping because:Question 14Answera.Firms can increase output in response to higher prices in the short runb.Firms do not react to increase in market demandc.Firms have limited capacity to produce goods and servicesd.Firms adjust prices faster than they adjust
a shift of the entire SRAS curve to the right.The AD-AS diagram above demonstrates a ____________ SRAS shock, leading to the unemployment rate (U) being ____________ the natural rate of unemployment (U*). negative; greater than positive; lower than negative; less than negative; equal to positive; greater than
In the Aggregate Demand-Aggregate Supply (AD-AS) model, consider an economy that is initially in long-run equilibrium. Which of the following events is most likely to cause both a leftward shift in the AD curve and a leftward shift in the SRAS (Short-Run Aggregate Supply) curve?This is a multi answer question. You can select one or more options as the answer.A.A global technological breakthrough that benefits all industries.B.A sudden and significant increase in global oil prices.C.A decrease in general consumer confidence across the economy.D.A broad reduction in import tariffs by the government.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.