For each of the following scenarios, determine the effect on aggregate supply. a. There is an unexpected decrease in oil prices. This causes: multiple choice 1 a decrease in aggregate supply, shifting the aggregate supply curve to the left. an increase in aggregate supply, shifting the aggregate supply curve to the right. a movement along the aggregate supply curve to the right, indicating an increase in the quantity of real GDP supplied. a movement along the aggregate supply curve to the left, indicating a decrease in the quantity of real GDP supplied. b. The government increases the amount that all producers are required to contribute to health insurance coverage. This causes: multiple choice 2 a movement along the aggregate supply curve to the right, indicating an increase in the quantity of real GDP supplied. a decrease in aggregate supply, shifting the aggregate supply curve to the left. a movement along the aggregate supply curve to the left, indicating a decrease in the quantity of real GDP supplied. an increase in aggregate supply, shifting the aggregate supply curve to the right.

Question

halleoatridge2666 halleoatridge2666

12-03-2021
Business

contestada

For each of the following scenarios, determine the effect on aggregate supply. a. There is an unexpected decrease in oil prices. This causes: multiple choice 1 a decrease in aggregate supply, shifting the aggregate supply curve to the left. an increase in aggregate supply, shifting the aggregate supply curve to the right. a movement along the aggregate supply curve to the right, indicating an increase in the quantity of real GDP supplied. a movement along the aggregate supply curve to the left, indicating a decrease in the quantity of real GDP supplied. b. The government increases the amount that all producers are required to contribute to health insurance coverage. This causes: multiple choice 2 a movement along the aggregate supply curve to the right, indicating an increase in the quantity of real GDP supplied. a decrease in aggregate supply, shifting the aggregate supply curve to the left. a movement along the aggregate supply curve to the left, indicating a decrease in the quantity of real GDP supplied. an increase in aggregate supply, shifting the aggregate supply curve to the right.

Respuesta :

Otras preguntas

what lead to a huge number of barbadians moving to carolina

Which of the following is true of the Industrial Workers of the World (I.W.W.)?

a store purchased a DVD for $12.00 and sold it to a customer for 50% more than the purchase price. the customer was a 7% tax when the DVD was sold. what was the

Which act was passed in the late 1800s to exclude an entire ethnic group?

What kind of equation could I use to solve this/how do I solve this: If the same length is cut off three pieces of wood measuring 21cm, 42cm, and 45cm, the thre

Which of the following groups were polytheists? A. Egyptians B. Hebrews C. both

Which engineer designed and built a 984-foot-tall iron and steel tower in Paris to celebrate the centennial of the French Revolution? A. Gustav Eiffel B. Guglie

describe the relationship between temperature and kinetic energy.

describe what happened to the deer and wolf populations between 1971 and 1980

In which numbered area on the map was the ancient land bridge now covered by the Bering Sea?

Parrain Parrain · Answer 1 · 2021-03-13T04:30:54+01:00

Answer:

a. an increase in aggregate supply, shifting the aggregate supply curve to the right.

b. a decrease in aggregate supply, shifting the aggregate supply curve to the left.

Explanation:

If there is a decrease in oil price, it would mean that producers are able to source oil at a cheaper rate. Oil is a major contributor to world economy whether indirectly or directly and if it is cheaper to source, production would increase as it would be cheaper to do so. Aggregate supply would therefore increase and the curve will be shifted to the right.

If the government increases the amount that all producers should contribute to health insurance, it would mean that labor is now more expensive. Labor is a major input in production so increasing its cost would make production more expensive. Producers would therefore hire less people and produce less to maintain profitability. Aggregate supply will therefore decrease and shift left.