Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer correct explain plz asap plz both are questions please Don't answer by pen paper plz Source: Matthew C. Klein, Why the Post-Pandemic Future
Please answer correct explain plz asap plz both are questions please
Don't answer by pen paper plz
Source: Matthew C. Klein, "Why the Post-Pandemic Future Could Be Bright: Productivity Gains Could Be Here to Stay," LRAS2020 barrons.com, January 8, 2021. a. What effect would an increase in productivity SRA5202 have on the short-run and long-run aggregate supply curves? O A. The long-run aggregate supply curve will Price Level ADD A LABEL shift to the right, while the short-run aggregate supply curve will not change. e2020 O B. The short-run aggregate supply curve will shift to the right, while the long-run aggregate supply curve will shift to the left. O C. The short-run aggregate supply curve will shift to the right, while the long-run AD2020 aggregate supply curve will not change. Real GDP O D. Both the short-run and long-run aggregate Edit coordinates (4.59,5.41) supply curves will shift to the right. b. What effect does an increase in federal government spending have on the aggregate demand curve? O A. It will have no effect on the aggregate demand curve, because increases in federal spending result in equal decreases in consumer consumption. O B. It will shift the aggregate demand curve to the left. O C. It will have no effect on the aggregate demand curve, because federal spending only affects aggregate supply O D. It will shift the aggregate demand curve to the rightStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started