Questions from General Economics

Q: Mario consumes only cheese and crackers. a. Could cheese

Mario consumes only cheese and crackers. a. Could cheese and crackers both be inferior goods for Mario? Explain. b. Suppose that cheese is a normal good for Mario while crackers are an inferior good....

Q: Explain whether each of the following events will increase, decrease,

Explain whether each of the following events will increase, decrease, or have no effect on long-run aggregate supply. a. The United States experiences a wave of immigration. b. Congress raises the min...

Q: Suppose an economy is in long-run equilibrium. a

Suppose an economy is in long-run equilibrium. a. Use the model of aggregate demand and aggregate supply to illustrate the initial equilibrium (call it point A). Be sure to include both short-run and...

Q: Explain why the long-run aggregate-supply curve is vertical

Explain why the long-run aggregate-supply curve is vertical.

Q: List and explain the three theories for why the shortrun aggregate-

List and explain the three theories for why the shortrun aggregate-supply curve slopes upward.

Q: What might shift the aggregate-demand curve to the left?

What might shift the aggregate-demand curve to the left? Use the model of aggregate demand and aggregate supply to trace through the short-run and long-run effects of such a shift on output and the pr...

Q: What might shift the aggregate-supply curve to the left?

What might shift the aggregate-supply curve to the left? Use the model of aggregate demand and aggregate supply to trace through the short-run and long-run effects of such a shift on output and the pr...

Q: Draw a diagram with aggregate demand, short-run aggregate supply

Draw a diagram with aggregate demand, short-run aggregate supply, and long-run aggregate supply. Be careful to label the axes correctly.

Q: List and explain the three reasons the aggregatedemand curve slopes downward.

List and explain the three reasons the aggregatedemand curve slopes downward.

Q: How does the economy’s behavior in the short run differ from its

How does the economy’s behavior in the short run differ from its behavior in the long run? Draw the model of aggregate demand and aggregate supply. What variables are on the two axes?