Refer to Figure: Shift of the Aggregate Demand Curve. A movement from AD1 to AD2 may have been the result of:
2. Figure: Shift of the Aggregate Demand Curve
Refer to Figure: Shift of the Aggregate Demand Curve. A movement from AD1 to AD2 may have been the result of:
increases in personal income taxes.
a decrease in government spending.
a decrease in consumer wealth.
an increase in government spending.
Homework Answers
"D"
An increase in the government spending will shift the aggregate demand curve to the right and the new equilibrium will be at a higher price and higher output.
Add Answer to:
Refer to Figure: Shift of the Aggregate Demand Curve. A movement from AD1 to AD2 may have been the result of:
Which of the following would most likely shift aggregate demand curve from AD1 to AD2?
Which of the following would most likely shift aggregate demand curve from AD1 to AD2? An increase in stock prices that increases consumer wealth. A reduction in household borrowing because of high interest rates. An increase in personal income tax rates, b. Increased fear that a recession will cause workers to lose their jobs.
Figure AS-AD.1 AD2 AD1 AD3 Real Domestic Output, GDP 13) In Figure AS.AD.1, what combination would...
Figure AS-AD.1 AD2 AD1 AD3 Real Domestic Output, GDP 13) In Figure AS.AD.1, what combination would most likely cause a shift from ADI to AD2? A) A decrease in taxes and an increase in government purchases B) An increase in taxes and an increase in government purchases 14) Other things being equal, the effects of an increase in the price of orange juice would best be represented by a(n): A) upward movement along the demand curve for orange juice. B)...
If the aggregate demand in the economy depicted below is AD2, ceteris paribus, what is likely...
If the aggregate demand in the economy depicted below is AD2, ceteris paribus, what is likely to happen in this economy in the long run (without any government intervention)? Price level LRAS SRAS P3 AD3 AD1 2 AD2 2 Y Y Real GDP O The SRAS curve will shift to the right. Nominal wages will decrease. Nominal wages will increase. Both the nominal wages will decrease and the SRAS curve will shift to the right. O The SRAS curve will...
Panel (b) A decrease in aggregate demand 1.20 1.18 1.16 1.14 1.12 AD1 AD2 1.10 $11,600...
Panel (b) A decrease in aggregate demand 1.20 1.18 1.16 1.14 1.12 AD1 AD2 1.10 $11,600 11,800 12,000 12,200 12,400 12,600 -00 Real GDP (billions of base-year dollars) per year ear Price level (base year = 1.00) QUESTION 3 3 points Save Answer Look at Panel (b) of Figure 7.2. Suppose the curve AD1 is the aggregate demand curve in year 1 and AD2 is that in year 2, and that the aggregate supply is 11,800 billions at all price...
QUESTION 1 Price level AS P1 P2 AD1 AD2 Y2 Y1 Real national output Which of...
QUESTION 1 Price level AS P1 P2 AD1 AD2 Y2 Y1 Real national output Which of the following would cause the shift in the AD curve (from ADto AD2) shown in the diagram above? A. The government increases interest rates B. The rate if income tax is reduced CA depreciation of the US dollar An improvement in technology QUESTION 2 Which combination of fiscal policies would be the most expansionary? A. an increase in government spending and an increase in...
Figure: AD–AS Refer to Figure: AD–AS. Assume that the economy is in long-run equilibrium. If the...
Figure:
AD–AS
Refer to Figure: AD–AS. Assume that the economy
is in long-run equilibrium. If the Federal Reserve were to lower
the targeted federal funds rate we would most likely expect:
there will be a downward movement along the aggregate demand
curve AD1.
the aggregate demand curve will stay unchanged at
AD1.
the aggregate demand curve will shift to
AD3.
the aggregate demand curve will shift to
AD2.
LRAS Aggregate price level SRAS AD, AD AD, Y₂ YpY, Real GDP
Refer to figure above, An expansionary fiscal policy would be most effective in raising output with little or no inflation when the aggregate demand curve shifts from
1. Refer to figure above, An expansionary fiscal policy would be most effective in raising output with little or no inflation when the aggregate demand curve shifts from a. AD1 to AD2.b. AD3 to AD4.c. AD5 to AD6.d. AD1 to AD6.
15. The short-run aggregate supply curve will shift to the: right if commodity prices i...
15.
The short-run aggregate supply curve will shift to the:
right if commodity prices increase.
left if productivity increases.
left if nominal wages increase.
right if government spending increases.
35.
An expansionary fiscal policy either _____ government spending
or _____ taxes.
decreases; increases
decreases; decreases
increases; decreases
increases; increases
12.
The short run in macroeconomic analysis is a period:
in which many production costs can be taken as fixed.
in which interest rates are fixed.
of two months, and the...
An increase in the price level will A) shift the aggregate demand curve to the left.
7) An increase in the price level will A) shift the aggregate demand curve to the left. B) shift the aggregate demand curve to the right. C) move the economy up along the aggregate demand curve. D) move the economy down along the aggregate demand curve. 8) Expansionary monetary policy involves A) reducing money supply and lowering taxes B) increasing money supply to decrease interest rate C) increasing government spending and cutting money supply D) increasing the interest rate and increasing taxes 9) Long-run macroeconomic equilibrium occurs when A) aggregate demand...
46 a)Which of the following factors will cause the aggregate demand curve to shift to the...
46 a)Which of the following factors will cause the aggregate demand curve to shift to the right? A.reduction in the aggregate price level B.decrease in foreign income C.reduction in personal income taxes D.increase in interest rates b)Which of the following will NOT shift the aggregate supply curve to the right? A.a decrease in corporate taxes B.the discovery of cheap solar energy C.an increase in the minimum wage D.the development in the methods of production of nanotechnology PreviousNext
Figure AS-AD.1 AD2 AD1 AD3 Real Domestic Output, GDP 13) In Figure AS.AD.1, what combination would most likely cause a shift from ADI to AD2? A) A decrease in taxes and an increase in government purchases B) An increase in taxes and an increase in government purchases 14) Other things being equal, the effects of an increase in the price of orange juice would best be represented by a(n): A) upward movement along the demand curve for orange juice. B)...
If the aggregate demand in the economy depicted below is AD2, ceteris paribus, what is likely to happen in this economy in the long run (without any government intervention)? Price level LRAS SRAS P3 AD3 AD1 2 AD2 2 Y Y Real GDP O The SRAS curve will shift to the right. Nominal wages will decrease. Nominal wages will increase. Both the nominal wages will decrease and the SRAS curve will shift to the right. O The SRAS curve will...
Panel (b) A decrease in aggregate demand 1.20 1.18 1.16 1.14 1.12 AD1 AD2 1.10 $11,600 11,800 12,000 12,200 12,400 12,600 -00 Real GDP (billions of base-year dollars) per year ear Price level (base year = 1.00) QUESTION 3 3 points Save Answer Look at Panel (b) of Figure 7.2. Suppose the curve AD1 is the aggregate demand curve in year 1 and AD2 is that in year 2, and that the aggregate supply is 11,800 billions at all price...
QUESTION 1 Price level AS P1 P2 AD1 AD2 Y2 Y1 Real national output Which of the following would cause the shift in the AD curve (from ADto AD2) shown in the diagram above? A. The government increases interest rates B. The rate if income tax is reduced CA depreciation of the US dollar An improvement in technology QUESTION 2 Which combination of fiscal policies would be the most expansionary? A. an increase in government spending and an increase in...
Figure:
AD–AS
Refer to Figure: AD–AS. Assume that the economy
is in long-run equilibrium. If the Federal Reserve were to lower
the targeted federal funds rate we would most likely expect:
there will be a downward movement along the aggregate demand
curve AD1.
the aggregate demand curve will stay unchanged at
AD1.
the aggregate demand curve will shift to
AD3.
the aggregate demand curve will shift to
AD2.
LRAS Aggregate price level SRAS AD, AD AD, Y₂ YpY, Real GDP
15.
The short-run aggregate supply curve will shift to the:
right if commodity prices increase.
left if productivity increases.
left if nominal wages increase.
right if government spending increases.
35.
An expansionary fiscal policy either _____ government spending
or _____ taxes.
decreases; increases
decreases; decreases
increases; decreases
increases; increases
12.
The short run in macroeconomic analysis is a period:
in which many production costs can be taken as fixed.
in which interest rates are fixed.
of two months, and the...
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