Student Solution

-->

"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

1 University

1 Course

1 Subject

Pop Quiz 6

Pop Quiz 6

Q Pop Quiz #6 1. Based on ch 33 Why It Matters by Mankiw, what are two questions raised by the issues of fluctuations in economic activity in the U.S. and all over the world? 2. The long-run aggregate supply curve is perfectly vertical in the AD-AS model. Describe why it is vertical, using the explanation from ConceptClip: Long-Run Aggregate Supply in ch 33. 3. List three effects to make the aggregate-demand curve sloped downward. Table 1 at 33-3b in ch 33 can be helpful to answer. 4. List four changes to shift the aggregate demand curve. You can also use Table 1 at 33-3b in ch 33 for this question. 5. List three theories to make the short-run aggregate supply curve sloped upward. Table 2 at 33-4e in ch 33 has the answer.

View Related Questions

Solution Preview

1 The two questions raised by the issues of fluctuations in economic activity in the U.S. and all over the world are: What causes economic downturns? And What, if anything, can policymakers do to avoid them or reduce their severity? 2 The long-run aggregate supply curve is perfectly vertical in the AD-AS model because the number of resources and productivity levels are independent of the price level.