98) Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico whichsubsequently drove up natural gas, gasoline, and heating oil prices. Three years later, once therefining capacity was restored, these prices came back down. The restoration of refining capacityshouldA) move the economy down along a stationary short-run aggregate supply curve.B) shift the short-run aggregate supply curve to the right.C) shift the short-run aggregate supply curve to the left.D) move the economy up along a stationary short-run aggregate supply curve.Answer: B98)Page Ref: 829/447Learning Outcome: Macro-6: Explain the aggregate supply-aggregate demand model.99) When the price level rises from 110 to 115, the aggregate level of GDP supplied rises from $80billion to $120 billion. This ________ relationship represents the ________ relationship betweenthe quantity of real GDP firms are willing to supply and the price level.99)Page Ref: 828/446Learning Outcome: Macro-3: Identify and interpret key macroeconomic measures.100) If full-employment GDP is equal to $4.2 trillion, what does the long-run aggregate supply curvelook like?100)Page Ref: 825/443Learning Outcome: Macro-7: Use the aggregate supply-aggregate demand model to explain aggregatefluctuations in output and inflation.101) Workers expect inflation to rise from 3% to 5% next year. As a result, this should101)Page Ref: 829/447Learning Outcome: Macro-7: Use the aggregate supply-aggregate demand model to explain aggregatefluctuations in output and inflation.
- Summer '19
- Economics, Harshad number, aggregate supply-aggregate demand, Supply-Aggregate Demand Model