Homework Answers
An example of a positive demand shock (increase in demand) is
a decrease in tax rates.
Demand shock is a sudden increase or decrease in demands for a
particular goods or services. Positive demand shock means increase
in demand and negative demand shock means decrease in demand.
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QUESTION 5 An example of a positive demand shock (increase in demand) is a decrease in...
An example of a positive real business cycle shock would be .. - a sudden Increase...
An example of a positive real business cycle shock would be .. - a sudden Increase in the money supply ma sudden decline in the working population (due to a fatal disease). the discovery of a new edible crop. ... the sudden decrease in the central bank's Inflation target. Erratic government government behavior can lead to a negative real shock by ... Increasing the perceived risk of Investing or saving - Increasing the inflation target. ... decreasing barriers to new...
Answer these 4 will rate after Graphically, a negative supply shock, such as the increase in...
Answer these 4 will rate after
Graphically, a negative supply shock, such as the increase in oil prices in 1973, can be shown as: O a leftward shift of the AD curve. a downward and to the right shift of the SR-AS curve. an upward and to the left shift of SR-AS curve. O a rightward shift of the AD curve. Decreases in short-run aggregate supply due to a reduction in the nation's resources result in O an increase in...
An increase in the money supply can typically affect the economy with a lag of: 2...
An increase in the money supply can typically affect the economy with a lag of: 2 to 3 months. 4 to 10 months. 6 to 18 months. 10 to 24 months. When a negative shock to aggregate demand occurs, the inflation rate will: increase. decrease. remain the same. be automatically adjusted by the Fed. How can the Fed offset a positive shock to aggregate demand? Decrease the growth rate of government spending. Increase the growth rate of government spending. Decrease...
What policy tools can be used to increase or decrease an economy's activity level? If the...
What policy tools can be used to increase or decrease an economy's activity level? If the federal government wants to decrease production and purchasing activity levels in the economy, which of the following policy tools could it use? Check all that apply. O Decrease government spending. O Decrease the money supply. O Increase tax rates. O Increase the money supply.
Classify each statement as an example of expansionary fiscal policy, contractionary fiscal policy, or not an...
Classify each statement as an example of expansionary fiscal policy, contractionary fiscal policy, or not an example of fiscal policy. Expansionary fiscal policy Contractionary fiscal policy Not an example of fiscal policy Answer Bank a decrease in government spending an increase in corporate bonds purchased a decrease in transfer payments a decrease in the money supply a decrease in taxes an increase in the money supply a decrease in the unemployment rate an increase in tax rates an increase in...
Expansionary fiscal policy ________________ to fight______________. increase the money supply and cut interest rates, recession. decrease...
Expansionary fiscal policy ________________ to fight______________. increase the money supply and cut interest rates, recession. decrease the money supply and raise interest rates, inflation. increase government spending and cut taxes, recession. decrease government spending and raise taxes, inflation.
18. Which of the following is an example of a supply shock? Group of answer choices...
18. Which of the following is an example of a supply shock? Group of answer choices A drop in consumer expectations prompts decreased buying of goods and services. An unexpected tax rebate from the government gives people more money to spend. An increase in taxes to the food sector industry increases production costs. Government increases spending on education, healthcare and social programs.
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...
24) Great Recession and Great Depression were similar except Stock Market crash High U...
24) Great Recession and Great Depression were similar except Stock Market crash High Unemployment Bad loans by banks Role of the Fed 25) The various kinds of automatic stabilizers are: Increased Defense spending All of them Expansionary Monetary Policy Taxes and Transfer payments 29) Internet Revolution in the 1990’s was an example of Negative Supply shock Positive demand shock Negative Demand shock Positive Supply shock 33) To close a recessionary gap, the Fed would increase the money supply increase interest...
24) Great Recession and Great Depression were similar except Stock Market crash High Unemployment Bad loans...
24) Great Recession and Great Depression were similar except Stock Market crash High Unemployment Bad loans by banks Role of the Fed 25) The various kinds of automatic stabilizers are: Increased Defense spending All of them Expansionary Monetary Policy Taxes and Transfer payments 29) Internet Revolution in the 1990’s was an example of Negative Supply shock Positive demand shock Negative Demand shock Positive Supply shock 33) To close a recessionary gap, the Fed would increase the money supply increase interest...
An example of a positive real business cycle shock would be .. - a sudden Increase in the money supply ma sudden decline in the working population (due to a fatal disease). the discovery of a new edible crop. ... the sudden decrease in the central bank's Inflation target. Erratic government government behavior can lead to a negative real shock by ... Increasing the perceived risk of Investing or saving - Increasing the inflation target. ... decreasing barriers to new...
Answer these 4 will rate after
Graphically, a negative supply shock, such as the increase in oil prices in 1973, can be shown as: O a leftward shift of the AD curve. a downward and to the right shift of the SR-AS curve. an upward and to the left shift of SR-AS curve. O a rightward shift of the AD curve. Decreases in short-run aggregate supply due to a reduction in the nation's resources result in O an increase in...
What policy tools can be used to increase or decrease an economy's activity level? If the federal government wants to decrease production and purchasing activity levels in the economy, which of the following policy tools could it use? Check all that apply. O Decrease government spending. O Decrease the money supply. O Increase tax rates. O Increase the money supply.
Classify each statement as an example of expansionary fiscal policy, contractionary fiscal policy, or not an example of fiscal policy. Expansionary fiscal policy Contractionary fiscal policy Not an example of fiscal policy Answer Bank a decrease in government spending an increase in corporate bonds purchased a decrease in transfer payments a decrease in the money supply a decrease in taxes an increase in the money supply a decrease in the unemployment rate an increase in tax rates an increase in...
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