Lras - Study guides, Class notes & Summaries

Production Possibilities Frontier (PPF) A graph that describes the maximum amount of one good that can be produced for every possible level of production of the other good. Growth of actual production: shift of AD (GDP) Growth of potential production: shift of the LRAS Economic growth. Source of economic growth (5) 1. The natural resource base 2. physical capital 3. appropriate technologies 4. Human capital 5. Institutional factors

AP Macroeconomics Exam Questions Marking Scheme New Update (Verified A+ Pass) Movement on Short-Run Phillips Curve - Answers - Shift in AD (graph movement is in opposite direction) Shift of Short-Run Phillips Curve - Answers - Shift in SRAS (shift is in opposite direction) Shift of Long-Run Phillips Curve - Answers - Factors of Production/Shift in LRAS (shift is in opposite direction) Factors of Production - Answers - 1. Land 2. Labor 3. Capital 4. Technology 5. Sometimes Foreign...

Macro Essay Plans Exam With 100% Correct Answers 2024 Evaluate the view that free-market supply-side reforms are beneficial to the UK economy [25] - correct answer-Supply side policies are the set of micro and macro government policies used to improve national economic performance by creating more competitive & efficient markets. Decrease NMW & benefits (reduced real wage unemployment), reduced income so increased incentive to work, increased labour supply, decrease wage costs, increase S...

Macroeconomics CLEP prep (2022/2023) Rated A+ LRAS Long Run Aggregate Supply, The natural level of GDP, shown vertical on a graph. When LRAS shifts, SRAS (Short Run Aggregate Supply) will follow . Tangible Assets Real Estate, Equipment, and Cash (physical assets) Intangible Assets Patents, Goodwill, and Trademarks (lack physical substance) Substitution effect Economic rule stating that if two items satisfy the same need and the price of one rises, people will buy the other. Equilibrium price...

According to the neo-classical model, what angle is the LRAS curve on? - correct answer.It is vertical AD non-price determinants for government - correct answer.- Government spending (e.g education, health care, infrastructure) - Political and economic priorities AD non-price determinants of consumption - correct answer.- Consumer confidence - Unemployment - Taxes - Interest Rates - Wealth (perceived, actual) - Indebtedness - Future expectations AD non-price determinants of in...

According to the neo-classical model, what angle is the LRAS curve on? - correct answer.It is vertical AD non-price determinants for government - correct answer.- Government spending (e.g education, health care, infrastructure) - Political and economic priorities AD non-price determinants of consumption - correct answer.- Consumer confidence - Unemployment - Taxes - Interest Rates - Wealth (perceived, actual) - Indebtedness - Future expectations AD non-price determinants of in...

According to the neo-classical model, what angle is the LRAS curve on? - correct answer.It is vertical AD non-price determinants for government - correct answer.- Government spending (e.g education, health care, infrastructure) - Political and economic priorities AD non-price determinants of consumption - correct answer.- Consumer confidence - Unemployment - Taxes - Interest Rates - Wealth (perceived, actual) - Indebtedness - Future expectations AD non-price determinants of in...

Draw a graph of aggregated demand. Make sure to label the axis - ANSWER-Vertical axis is Price and Horizontal Axis is GDP How does the quantity of GDP demanded change as the price level in the economy increases? Illustrate this on your graph - ANSWER-It leads to a lower quantity of spending on domestic goods and services decline List and explain the components of aggregate demand - ANSWER-Consumption spending when disposable income increases, so does consumption spending and AD shifts to t...

In 2008, the United States was in recession. Which of the following things would you expect to have happened? correct answers - Increased layoffs/firing - Higher bankruptcy rate - Increased unemployment insurance claims The Wealth Effect, Interest-Rate Effect, and Exchange-Rate Effect are all explanations for ____. correct answers The slope of the aggregate-demand curve If the rise in house value made homeowners feel wealthier, then it would have shifted ___. correct answers aggregate de...

2024 macro paper Exam Questions and Answers 100% Pass Define the term 'inflation'. (1) - Correct Answer ️️ -increase in GDP (measured by the CPI based on an average basket of goods) Explain one likely cause of inflation. (2) - Correct Answer ️️ -increasing in govt spending --> AD shifts out --> actual growth --> demand pull inflation OR natural disaster --> AS shifts inwards --> cost push inflation Illustrate the shape of the Classical long-run aggregate supply (A...