QUESTIN 18
Which one of the following would cause an increase in the aggregate supply?
a. insecurity about jobs and future income.
b. improvements in economic conditions in other countries.
C. a decrease in labor supplied
d. new discoveries of raw materials
QUESTIN 19
Which one of the following statements is correct?
I. A drop in the foreign exchange value of the dollar would increase aggregate demand
II. A decrease in the amount of money in circulation would increase aggregate demand
a. I only
b. Il only
c. Both I and II
d. Neither I nor II
QUESTIN 20
What will happen to the equilibrium price level and real GDP if aggregate demand increases and aggregate supply decreases?
a. equilibrium price levels rise; the new level of real GDP is indeterminate.
b.equilibrium real GDP rises; the new price level is indeterminate.
c. equilibrium real GDP falls; the new price level is indeterminate.
d. equilibrium price level falls; the level of real GDP is indeterminate.
18) d. New discoveries of raw materials
19) a. I only
20) a. Equilibrium price levels rise; the new level of real gdp is indeterminate.
Which one of the following would cause an increase in the aggregate supply?
Consider the AD/AS macro model. Suppose there is an increase in aggregate demand and, simultaneously, a decrease in aggregate supply. The result will be a Select one: a. rise in real GDP but price level changes will be indeterminate. b. rise in real GDP and a fall in the price level. c. an indeterminate change in real GDP and a rise in the d. an indeterminate change in real GDP and a fall in the price level e. rise in...
1. An increase in short-run aggregate supply means ________. A) the real GDP would decrease and the price level would rise B) both the real GDP and the price level would decrease C) the real GDP would increase and rises in the price level would become smaller D) both the real GDP and rises in the price level would become greater 2. Assume that there is a 25% reserve requirement and that the Federal Reserve buys $4 billion worth of...
Question 6 An increase in aggregate demand (AD) can cause an increase in cyclical unemployment. a recession in the economy. an expansion in the economy. Question 9 Which of the following would cause a negative demand shock (shift to the left) in aggregate demand? decreased availability of business capital increased government spending production costs falling Question 10For aggregate demand and aggregate supply to be an economic model, the equilibrium aggregate price level and equilibrium aggregate real GDP should only consider long run curves. be considered in individual markets. intersect.
a. Which of the following events would likely cause the decrease in aggregate demand? Personal consumption falls as workers become concerned about future employment prospects. Imports decrease due to increased foreign prices. Gross investment increases as capital units become fully utilized. b. A decrease in aggregate demand is of policy concern due to the increase in the: unemployment rate. productivity of workers. price level. c. Which policy action should the federal government enact? Increase personal income tax rates Decrease real...
Thank You! QUESTION 30 Aggregate price level x Real GDP in the price level and a decrease in the In the Aggregate Demand and Supply model (shown), an increase in nominal wages would cause an increase equilibrium level or real GDP in the short run. QUESTION 31 Aggregate price level Real GDP In the Aggregate Demand and Supply model (shown), if the government's budget deficit increases as a result of a tax cut with no cuts in spending, the result...
QUESTION 7 1 pc Assume C 50+.80yd (disposable income); Taxes GDP (V)? (Hint: Yd = Y - Taxes) 10; Investment - 30: Goverment - 20: Exports 16; and Imports - 20. What is the O a 200 26.400 c. 405 d. 435 QUESTION 8 From the question above, C (consumption) is equal to 360 390 O 414 OO QUESTION 9 Use the following table to find the MPC and MPS: SA NI Answ QUESTION 9 Ube the following table to...
which is right uestion 8 (1 point) An increase in taxes will increase aggregate supply and increase real GPD and the price level. O decrease aggregate supply decrease real GPD and the price level. decrease aggregate demand and increase real GPD and the price level.
Question 21 1 pts Use the following table which shows the aggregate demand and aggregate supply schedule for a hypothetical economy to answer the next question. Real Domestic Output Demanded Price Level Real Domestic Output Supplied (in billions) (index value) (in billions) $3,000 350 $9,000 4,000 300 8,000 5,000 250 7,000 6,000 200 6,000 7,000 150 5,000 8,000 100 4,000 At the price level of 150, there will be a general surplus in the economy, and output supplied will decrease...
Which of the following events would cause an increase in aggregate demand? A. a decrease in consumption B. an increase in taxes C. a decrease in the price level D. a decrease in taxes
The table shows Aggregate Demand and Short-run Aggregate Supply for a country in which Potential GDP is $1,050 billion Price Level Real GDP Demanded Real GDP Supplied 100 $1,150 $1,050 110 $1,100 $1,100 120 $1,050 $1,150 130 $1,000 $1,200 140 $950 $1,250 150 $900 $1,300 160 $850 $1,350 Graph the Aggregate Demand and Short-run Aggregate Supply curves Does this country have an inflationary gap or a recessionary gap? What is the magnitude of the gap as a % of Potential...