Homework Answers
This is an example for the increase in the government expenditure, when the government increases the spending there would be more employment opportunities and this increase the income of the people. The increase in income would induce consumption and the investment activities and that will increase the aggregate demand. This is an increase in the aggregate demand , so the AD curve shifts to the right. The price level and the real GDP will increase.
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QUESTION 30 . 1 POINT The U.S. government has increased its allocated funding for a major...
1.)Suppose a removal of a government regulation on the safety of goods produced in the US...
1.)Suppose a removal of a government regulation on the safety of
goods produced in the US cause foreigners to become less confident
about products made in America; illustrate the effect of this on
the American economy by shifting the aggregate demand (AD) curve in
the appropriate direction.
2.)
A favorable economic outlook is shared in an announcement in the
news by the government. Consumers are now confident about the
future strength of the economy and the availability of jobs;
illustrate...
1. 2. If the Fed wants to reduce the money supply through open market operations, it...
1.
2.
If the Fed wants to reduce the money supply through open
market operations, it will
Select the correct answer below :
sell bonds
buy bonds
Oreduce the required reserves ratio
reduce the discount rate
3.
A growing debt/GDP ratio could mean that, all else the
same,
Select the correct answer below:
the government is running large budget deficits
the government is paying down the debt
government expenditures are less than tax revenues.
the economy is in a growth...
A central bank implements a contractionary monetary policy over worries that inflation will undermine further economic...
A central bank implements a contractionary monetary policy over worries that inflation will undermine further economic growth. Demonstrate the effect this policy has on the economy by shifting the aggregate demand (AD) curve in the appropriate direction Provide your answer below: Price Level Aggregate Supply Aggregate Demand Real GDP
1.)Suppose, the government is concerned about breaches in government data security and has decided to spend $1billio...
1.)Suppose, the government is concerned about breaches in
government data security and has decided to spend
$1billion
dollars on improving data security. Government will not cut
spending in other areas of the budget, so it will likely have to
issue new government bonds to finance this increase in government
spending. Use the graph below to show the impact of the
aforementioned on the economy by shifting the appropriate
curve(s).
2.)
Suppose the US government has decided to expand its budget...
6. Monetizing the deficit One of the major objections to government budget deficits is that they...
6. Monetizing the deficit One of the major objections to government budget deficits is that they may be inflationary. In addition, some worry that the Federal Reserve may monetize part of the deficit by buying some of the newly issued debt, potentially causing even more inflation. In general, a tax cut increases both real GDP and the price level, since it causes aggregate demand to increase. The following graph shows the demand and supply of bank reserves. Show the initial...
The graph below shows an economy in macroeconomic equilibrium. Suppose the federal government increases block grants...
The graph below shows an economy in macroeconomic equilibrium. Suppose the federal government increases block grants to state and local governments. All else equal, illustrate the effect of this expansionary fiscal policy on macroeconomic equilibrium. Provide your answer below: Price Level Aggregate Supply Aggregate Demand Whenever equilibrium real GDP is below the full-employment level of GDP, we have Select the correct answer below: O a natural level of employment O cyclical unemployment O only frictional and structural unemployment higher than...
16. to the wealth effect, an increase in the price level causes ease in real wealth and more purchases b. An incr C. A decrease d. rease in real wealth and fewer purchases se in real wealth and f...
16. to the wealth effect, an increase in the price level causes ease in real wealth and more purchases b. An incr C. A decrease d. rease in real wealth and fewer purchases se in real wealth and fewer purchases A decrease in r price level increase tends to reduce net exports, thereby reducing the amount of real goods a. The b. The international banner effect C. rvices purchased in the U.S. Economists refer to this phenomenon as international wealth...
Please help me solve this difficult question completely and correctly. Thanks. 1. Exchange rates and aggregate...
Please help me solve this difficult question completely and
correctly. Thanks.
1. Exchange rates and aggregate supply and demand The following graph illustrates the aggregate demand and aggregate supply curves for the U.S. economy. Suppose that the U.S. dollar has recently depreciated relative to other foreign currencies. Shift the appropriate curve or curves on the graph to illustrate how the depreciation in the U.S. dollar affects the U.S. economy. Aggregate Supply Aggregate Demand Aggregate Supply Aggregate Demand REAL GDP According...
Economics: 1) Why is it possible to change real economic factors in the short run simply...
Economics: 1) Why is it possible to change real economic factors in the short run simply by printing and distributing more money? 2) Explain why a stable 5% inflation rate can be preferable to one that averages 4% but varies between 1-7% regularly. 3) Explain the difference between active and passive monetary policy. 4) Suppose the economy is in long-run equilibrium, with real GDP at $16 trillion and the unemployment rate at 5%, Now assume that the central bank unexpectedly...
1. In the beginning of 2017, the U.S. government predicted that economic growth would rise by...
1. In the beginning of 2017, the U.S. government predicted that economic growth would rise by 2019 and that the government's deficit would also increase. The government, therefore, was predicting that in 2019 the cyclical deficit would _______ and the structural deficit would _______. A. increase; increase B. decrease; increase C. increase; decrease D. decrease; decrease E. decrease; unchanged 2. Denmark's government budget was in surplus in 2014, and in deficit in the following year, 2015. We can conclude the...
1.)Suppose a removal of a government regulation on the safety of
goods produced in the US cause foreigners to become less confident
about products made in America; illustrate the effect of this on
the American economy by shifting the aggregate demand (AD) curve in
the appropriate direction.
2.)
A favorable economic outlook is shared in an announcement in the
news by the government. Consumers are now confident about the
future strength of the economy and the availability of jobs;
illustrate...
1.
2.
If the Fed wants to reduce the money supply through open
market operations, it will
Select the correct answer below :
sell bonds
buy bonds
Oreduce the required reserves ratio
reduce the discount rate
3.
A growing debt/GDP ratio could mean that, all else the
same,
Select the correct answer below:
the government is running large budget deficits
the government is paying down the debt
government expenditures are less than tax revenues.
the economy is in a growth...
A central bank implements a contractionary monetary policy over worries that inflation will undermine further economic growth. Demonstrate the effect this policy has on the economy by shifting the aggregate demand (AD) curve in the appropriate direction Provide your answer below: Price Level Aggregate Supply Aggregate Demand Real GDP
1.)Suppose, the government is concerned about breaches in
government data security and has decided to spend
$1billion
dollars on improving data security. Government will not cut
spending in other areas of the budget, so it will likely have to
issue new government bonds to finance this increase in government
spending. Use the graph below to show the impact of the
aforementioned on the economy by shifting the appropriate
curve(s).
2.)
Suppose the US government has decided to expand its budget...
6. Monetizing the deficit One of the major objections to government budget deficits is that they may be inflationary. In addition, some worry that the Federal Reserve may monetize part of the deficit by buying some of the newly issued debt, potentially causing even more inflation. In general, a tax cut increases both real GDP and the price level, since it causes aggregate demand to increase. The following graph shows the demand and supply of bank reserves. Show the initial...
The graph below shows an economy in macroeconomic equilibrium. Suppose the federal government increases block grants to state and local governments. All else equal, illustrate the effect of this expansionary fiscal policy on macroeconomic equilibrium. Provide your answer below: Price Level Aggregate Supply Aggregate Demand Whenever equilibrium real GDP is below the full-employment level of GDP, we have Select the correct answer below: O a natural level of employment O cyclical unemployment O only frictional and structural unemployment higher than...
16. to the wealth effect, an increase in the price level causes ease in real wealth and more purchases b. An incr C. A decrease d. rease in real wealth and fewer purchases se in real wealth and fewer purchases A decrease in r price level increase tends to reduce net exports, thereby reducing the amount of real goods a. The b. The international banner effect C. rvices purchased in the U.S. Economists refer to this phenomenon as international wealth...
Please help me solve this difficult question completely and
correctly. Thanks.
1. Exchange rates and aggregate supply and demand The following graph illustrates the aggregate demand and aggregate supply curves for the U.S. economy. Suppose that the U.S. dollar has recently depreciated relative to other foreign currencies. Shift the appropriate curve or curves on the graph to illustrate how the depreciation in the U.S. dollar affects the U.S. economy. Aggregate Supply Aggregate Demand Aggregate Supply Aggregate Demand REAL GDP According...
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