Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ceteris paribus, which of the following occurs when the price level rises in the U.S.? Select one: O a. Consumers in other countries discover that

image text in transcribedimage text in transcribed
image text in transcribedimage text in transcribed
Ceteris paribus, which of the following occurs when the price level rises in the U.S.? Select one: O a. Consumers in other countries discover that goods in the U. S. appear to be a bargain. O b. The long run production capacity of the U. S. increases. c. U. S. consumers who have money in the bank will experience an increase in real wealth. O d. U.S. consumers find it easier to borrow money to make purchases. O e. Real wages and resource prices fall, encouraging expansion by U.S. businesses.Suppose that, during this year, two major earthquakes destroy roads, factories, and homes on the West Coast. Also, hurricanes, floods, and tornadoes destroy large amounts of the east and Midwest. What will happen to the economy? Select one: O a. Short run aggregate supply will rise O b. Aggregate demand will fall. O c. Long run aggregate supply will fall. O d. Aggregate demand will rise. O'e, Long run aggregate supply will rise. What result would you most expect if there is a fall in consumer wealth (in the short run)? Select one: O a. The price level would rise and real output would also rise. O b. Real output would rise, and the price level would fall, O c. The price level would remain unchanged, as would real output, O d. Real output would decline, and the price level would increase. O e. The price level would fall, and real output would decline

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Management And Business Policy: Globalization, Innovation And Sustainability

Authors: Thomas L. Wheelen, J. David Hunger, Alan N. Hoffman, Chuck Bamford

14th Edition

0133126145, 978-0133126143

More Books

Students also viewed these Economics questions

Question

5. How quickly can we manage to collect the information?

Answered: 1 week ago

Question

3. Tactical/strategic information.

Answered: 1 week ago

Question

3. To retrieve information from memory.

Answered: 1 week ago