Homework Answers
5) first option is correct. Aggregate supply curve as well as aggregate demand curve are functions that relate the general price level with the real GDP. Aggregate supply curve shows a positive relationship while aggregate demand curve negative relationship
6) last option is correct. Decline in the price of the United States will increase its competitiveness and foreigners will find it cheaper to buy US made goods than buying their own goods.
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Question 5 In the aggregate supply and aggregate model, the shapes of the aggregate supply and...
Help Save a A fall in the U.S. price level will cause foreigners to: Multiple Choice...
Help Save a A fall in the U.S. price level will cause foreigners to: Multiple Choice O substitute substitute U.S. goods for their own domestically produced goods. O buy more of their own domestically produced goods buy more of the o buy fewer U.S. goods. substitute their own domestically produced goods for U.S. goods
1. Aggregate demand curves slope downwards for each of the following reasons EXCEPT A. The wealth...
1. Aggregate demand curves slope downwards for each of the following reasons EXCEPT A. The wealth effect: As the price level falls, the buying power of people's savings increases and induces them to spend more. B. The substitution effect: As the price level falls, people buy more of the cheaper goods and less of other goods. c. The interest rate effect: As prices for outputs rise, it costs more to make the same purchases, driving up the demand for money,...
As prices rise, a fixed money supply will be able to buy fewer goods and services....
As prices rise, a fixed money supply will be able to buy fewer goods and services. This real balance effect is due to a(n) reduction in the interest rate. Increase in aggregate demand Decline in the purchasing power of the fixed quantity of money. Increase in income. The international substitution effect exists because a Higher price level will reduce interest rates and stimulate foreign investment. Lower price level will make domestically produced goods less expensive relative to foreign goods. Higher...
26. are The four components of planned aggregate expenditures a. Consumption, investment, inventories, and government purchases....
26. are The four components of planned aggregate expenditures a. Consumption, investment, inventories, and government purchases. b. Consumption, planned investment, unplanned changes in inventory, and exports. c. Consumption, investment, government purchases, and net exports. d. Consumption, investment, exports and imports. 27. The aggregate demand (AD) curve slopes downward indicating that a. an increase in the general price level will reduce the aggregate quantity of goods and services demanded. b. an increase in the general price level will increase the aggregate...
QUESTION 6 The aggregate demand curve would shift to the right as a result of a...
QUESTION 6 The aggregate demand curve would shift to the right as a result of a drop in the foreign exchange value of the dollar. a decrease in the amount of money in circulation. a drop in the price level. tax increases. QUESTION 16 According to Keynesian economics using the modern short-run aggregate supply curve, if there are unutilized resources in the economy and the aggregate demand decreases real GDP will fall and price level will fall. real GDP will...
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...
Enter Question 18 In aggregate demand and supply model, there exists an inverse and direct relationship...
Enter Question 18 In aggregate demand and supply model, there exists an inverse and direct relationship between which two variables? Answer Question 19 Which of the following would cause an increase in the supply of a particular product? Answer Question 20 Households begin to change their attitude towards thrift, and increase their level of savings. What will follow? Question 21 A financial depository institution's reserve requirement is a specified percentage of: Answer Question 22 When an economy is on a...
Draw and carefully describe a graph that utilizes theAggregate Demand/Aggregate Supply model that would illustrate...
Draw and carefully describe a graph that utilizes the
Aggregate Demand/Aggregate Supply model that would illustrate the
current state of the aggregate economy in the United States. The
Aggregate Demand/Aggregate Supply Model is first explained in
Chapter 11of your text. Carefully explain your graph.You should draw your own AD/AS graph which you can then scan
and paste into your post. Your graph needs to be clearly labeled
and explained carefully. Make sure that your graph includes an
aggregate demand (AD)...
14 Question (1 point) The following figure depicts the aggregate demand curve (AD), the short-run aggregate...
14 Question (1 point) The following figure depicts the aggregate demand curve (AD), the short-run aggregate supply curve (SRAS), and the long-run aggregate supply curve (LRAS) for the United States. The economy is initially at long-run equilibrium, at point A. In addition to the crash of the stock market and a subsequent fall in expected future income, the Great Depression was also partially caused by a change in legislation regarding trade. In 1930, Congress passed the Smoot-Hawley Tariff Act. This...
1. Which of the following is not a property of the aggregate demand curve? It shows...
1. Which of the following is not a property of the aggregate demand curve? It shows the relationship between the overall price level and level consumption. It shows the price level on the vertical axis and output on the horizontal axis. The aggregate demand curve slopes downward. It shows the relationship between the overall price level and the level of total demand. 2. When the price level increases people: feel more wealthy. have the same real value of assets, regardless...
Help Save a A fall in the U.S. price level will cause foreigners to: Multiple Choice O substitute substitute U.S. goods for their own domestically produced goods. O buy more of their own domestically produced goods buy more of the o buy fewer U.S. goods. substitute their own domestically produced goods for U.S. goods
1. Aggregate demand curves slope downwards for each of the following reasons EXCEPT A. The wealth effect: As the price level falls, the buying power of people's savings increases and induces them to spend more. B. The substitution effect: As the price level falls, people buy more of the cheaper goods and less of other goods. c. The interest rate effect: As prices for outputs rise, it costs more to make the same purchases, driving up the demand for money,...
26. are The four components of planned aggregate expenditures a. Consumption, investment, inventories, and government purchases. b. Consumption, planned investment, unplanned changes in inventory, and exports. c. Consumption, investment, government purchases, and net exports. d. Consumption, investment, exports and imports. 27. The aggregate demand (AD) curve slopes downward indicating that a. an increase in the general price level will reduce the aggregate quantity of goods and services demanded. b. an increase in the general price level will increase the aggregate...
QUESTION 6 The aggregate demand curve would shift to the right as a result of a drop in the foreign exchange value of the dollar. a decrease in the amount of money in circulation. a drop in the price level. tax increases. QUESTION 16 According to Keynesian economics using the modern short-run aggregate supply curve, if there are unutilized resources in the economy and the aggregate demand decreases real GDP will fall and price level will fall. real GDP will...
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...
Enter Question 18 In aggregate demand and supply model, there exists an inverse and direct relationship between which two variables? Answer Question 19 Which of the following would cause an increase in the supply of a particular product? Answer Question 20 Households begin to change their attitude towards thrift, and increase their level of savings. What will follow? Question 21 A financial depository institution's reserve requirement is a specified percentage of: Answer Question 22 When an economy is on a...
Draw and carefully describe a graph that utilizes the
Aggregate Demand/Aggregate Supply model that would illustrate the
current state of the aggregate economy in the United States. The
Aggregate Demand/Aggregate Supply Model is first explained in
Chapter 11of your text. Carefully explain your graph.You should draw your own AD/AS graph which you can then scan
and paste into your post. Your graph needs to be clearly labeled
and explained carefully. Make sure that your graph includes an
aggregate demand (AD)...
14 Question (1 point) The following figure depicts the aggregate demand curve (AD), the short-run aggregate supply curve (SRAS), and the long-run aggregate supply curve (LRAS) for the United States. The economy is initially at long-run equilibrium, at point A. In addition to the crash of the stock market and a subsequent fall in expected future income, the Great Depression was also partially caused by a change in legislation regarding trade. In 1930, Congress passed the Smoot-Hawley Tariff Act. This...
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