Refer to the following figure TO ANSWER THE NEXT T REE QUESTIONS there 28. Ba se
ID: 1121423 • Letter: R
Question
Refer to the following figure TO ANSWER THE NEXT T REE QUESTIONS there 28. Ba sed on the figure, starting at point A, if there is an increase in government spending, then in the short run we would move to pointand in the long raun te pog, then in the shon run to point a. B; E c. D; A e. B A 29. Based on the figure, startingatpointA·if there is an increase in the price of oil, then in the short run we move to point , and in the long run to point a. F E b. F: A c. D: C d. D; A e. B: E 30. Based on the figure, if the economy starts at point A and ends up at point E, then in the short run, there was: a. a decrease in aggregate demand. b. an increase in aggregate demand. c. a decrease in short-run aggregate supply. d. an increase in short-run aggregate supply e an increase in long-run aggregate supply 31. During the Great Depression, the U.S. aggregate demand curve shifted to the left, in part, because: a. there was a huge discovery of gold in the western United States. b. the U.S. government decreased the supply of money c. there was an advance in technology in manufacturing. d. there was an increase in trade with other countries. e. the U.S. government decreased taxesExplanation / Answer
Answer:
28.
A
Increase in aggregate demand caused a rightward shift in the short term and reached a point of B. But the supply shifts to the left at E in the long run due to the demand pull inflation.
29.
B
30.
B
Increase in aggregate demand caused a rightward shift in the short term and reached a point of E in the long run.
31.
B
During the great depression, the government made a decision to decrease the money supply. It led to the reduction in demand.