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Ans) the correct option is c) recessionary expenditure gap is ed
Ans) the correct option is c) MPC and APC at each income level have both increased.
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Aggregate Expenditures 8 01:53:18 eBook B GDP Refer to the diagram. If the full-employment level of...
Refer to the accompanying table in answering the questions that follow: Aggregate Expenditures (Catlg+Xn+G), Billions 420...
Refer to the accompanying table in answering the questions that follow: Aggregate Expenditures (Catlg+Xn+G), Billions 420 Real Domestic Output, Possible Levels of Employment, Millions 70 90 110 130 150 Billions 400 450 460 500 540 580 600 a. If full employment in this economy is 150 million, will there be an inflationary expenditure gap or a recessionary expenditure gap? (Click to select) What will be the consequence of this gap? (Click to select) By how much would aggregate expenditures in...
Refer to the accompanying table to answer the questions that follow. (1) (2) (3) Real Domestic...
Refer to the accompanying table to answer the questions that follow. (1) (2) (3) Real Domestic Output, Billions Aggregate Expenditures (Ca + lg + Xn + G), Billions $520 $500 Possible Levels of Employment, Millions 90 100 110 120 130 550 560 600 650 700 600 640 680 a. If full employment in this economy is 130 million, will there be an inflationary expenditure gap or a recessionary expenditure gap? Inflationary expenditure gap What will be the consequence of this...
QUESTION 24 Given the table below which of the following statements is TRUE? Consumption Savings MPC...
QUESTION 24 Given the table below which of the following statements is TRUE? Consumption Savings MPC MPS APC APS Level of output 240 -4 260 0 280 4 300 8 320 12 16 340 360 20 380 24 400 28 A. Equilibrium is obtained when the level of output is 280 When the level of output is 320 APS is equal to 0,375 C. When the level of output is 360 APC is 0.94 D. When the level of output...
The table gives the aggregate demand schedule, the short run aggregate supply schedule, and the long run aggregat...
The table gives the aggregate demand schedule, the short run aggregate supply schedule, and the long run aggregate supply schedule for an economy What is the quantity of real GDP at the short-run macroeconomic equilibrium? Price level (GDP deflator) The quantity of real GDP at the short-run macroeconomic equilibrium is s billion 100 Real GDP Real GDP Real GDP supplied supplied demanded in short run in long run (billions of 2007 dollars) 200 500 350 500 500 500 400 650...
Product 13) 13) The gap that exists when equilibrium real Gross Domestic (GDP) is greater than...
Product 13) 13) The gap that exists when equilibrium real Gross Domestic (GDP) is greater than full employment real Gross Domestic Product (GDP) is called a(n) A) demand gap. C) recessionary gap B) employment gap D) inflationary gap 14) 14) Economic growth will NOT result in inflation if aggregate demand shifts A) outward to the right at the same speed as aggregate supply B) outward to the right as aggregate supply shifts inward to the left. C) inward to the...
Use the following macroeconomic model structure to answer the questions followed. 8 pts C = 300...
Use the following macroeconomic model structure to answer the questions followed. 8 pts C = 300 + 0.8Yd; C = consumption function; Yd (Y-T) = disposable income I = 200; I = Investment G = 400; G = Government expenditure T = 200; T = Tax revenue Also assume that Yf = Full employment GDP (Potential GDP) = 5,000 8.1. The equilibrium GDP level (income) is _________. Hint: Ye = C+I+G a. 2,850 b. 3,700 c. 3,145 d. 3,800 8.2....
Exhibit 8-8 Aggregate expenditures function Real consumption and Investment expenditures (trillions of dollars per year) om...
Exhibit 8-8 Aggregate expenditures function Real consumption and Investment expenditures (trillions of dollars per year) om 0 1 2 3 4 5 6 7 8 9 10 Real disposable income (trillions of dollars per year) 23. In Exhibit 8-8, what is the households' marginal propensity to consume (MPC)? 20.5. c. 0.8. b. 0.75 d. 1. 24. Using the Keynesian aggregate expenditures model, which of the following is true? a Macro equilibrium may occur at levels of real GDP other than...
GIVE ONLY ANSWERS AND ANSWER ALL 130 120 100 90 o 15.0 155 16.0 165 170...
GIVE ONLY ANSWERS AND ANSWER ALL
130 120 100 90 o 15.0 155 16.0 165 170 175 Real GDP (trillions of 2009 dollars) 24) 24) In the above figure, the curve labeled A shifts rightward f B) the quantity of money decreases. D) the substitution effect occurs. A) expected future profits decrease C) taxes decrease. 25) 25) In the United States, of the following decades inflation was highest during the- - D) 2000s C) 1990s A) 1960s B) 1970s 26)...
9.What is Say’s Law and what do classical economists say about prices, wages, and interest rates?...
9.What is Say’s Law and what do classical economists say about prices, wages, and interest rates? What are the three states of the economy in relating the real GDP to natural real GDP? In a recessionary gap, is there a surplus or a shortage of production? What does that imply about the labor market and how wages may change? Understand the differences between a recessionary gap, inflationary gap, and long run equilibrium. How is the physical production possibilities frontier (PPF)...
QUESTION 10 0.36 points Save Answer LRAS Aggregate price level P, AD, Real GDP In response to the high unemployment rate and low level of real GDP at point El in the diagram above, the Federal Op...
QUESTION 10 0.36 points Save Answer LRAS Aggregate price level P, AD, Real GDP In response to the high unemployment rate and low level of real GDP at point El in the diagram above, the Federal Open Market Committee (the decision-making body of the Federal Reserve) decides to engineer a decrease in interest rates. If no other disturbances occurred, and the Fed calibrated its policy perfectly so that full employment equilibrium was restored, what price level would prevail at the...
Refer to the accompanying table in answering the questions that follow: Aggregate Expenditures (Catlg+Xn+G), Billions 420 Real Domestic Output, Possible Levels of Employment, Millions 70 90 110 130 150 Billions 400 450 460 500 540 580 600 a. If full employment in this economy is 150 million, will there be an inflationary expenditure gap or a recessionary expenditure gap? (Click to select) What will be the consequence of this gap? (Click to select) By how much would aggregate expenditures in...
Refer to the accompanying table to answer the questions that follow. (1) (2) (3) Real Domestic Output, Billions Aggregate Expenditures (Ca + lg + Xn + G), Billions $520 $500 Possible Levels of Employment, Millions 90 100 110 120 130 550 560 600 650 700 600 640 680 a. If full employment in this economy is 130 million, will there be an inflationary expenditure gap or a recessionary expenditure gap? Inflationary expenditure gap What will be the consequence of this...
QUESTION 24 Given the table below which of the following statements is TRUE? Consumption Savings MPC MPS APC APS Level of output 240 -4 260 0 280 4 300 8 320 12 16 340 360 20 380 24 400 28 A. Equilibrium is obtained when the level of output is 280 When the level of output is 320 APS is equal to 0,375 C. When the level of output is 360 APC is 0.94 D. When the level of output...
The table gives the aggregate demand schedule, the short run aggregate supply schedule, and the long run aggregate supply schedule for an economy What is the quantity of real GDP at the short-run macroeconomic equilibrium? Price level (GDP deflator) The quantity of real GDP at the short-run macroeconomic equilibrium is s billion 100 Real GDP Real GDP Real GDP supplied supplied demanded in short run in long run (billions of 2007 dollars) 200 500 350 500 500 500 400 650...
Product 13) 13) The gap that exists when equilibrium real Gross Domestic (GDP) is greater than full employment real Gross Domestic Product (GDP) is called a(n) A) demand gap. C) recessionary gap B) employment gap D) inflationary gap 14) 14) Economic growth will NOT result in inflation if aggregate demand shifts A) outward to the right at the same speed as aggregate supply B) outward to the right as aggregate supply shifts inward to the left. C) inward to the...
Exhibit 8-8 Aggregate expenditures function Real consumption and Investment expenditures (trillions of dollars per year) om 0 1 2 3 4 5 6 7 8 9 10 Real disposable income (trillions of dollars per year) 23. In Exhibit 8-8, what is the households' marginal propensity to consume (MPC)? 20.5. c. 0.8. b. 0.75 d. 1. 24. Using the Keynesian aggregate expenditures model, which of the following is true? a Macro equilibrium may occur at levels of real GDP other than...
GIVE ONLY ANSWERS AND ANSWER ALL
130 120 100 90 o 15.0 155 16.0 165 170 175 Real GDP (trillions of 2009 dollars) 24) 24) In the above figure, the curve labeled A shifts rightward f B) the quantity of money decreases. D) the substitution effect occurs. A) expected future profits decrease C) taxes decrease. 25) 25) In the United States, of the following decades inflation was highest during the- - D) 2000s C) 1990s A) 1960s B) 1970s 26)...
QUESTION 10 0.36 points Save Answer LRAS Aggregate price level P, AD, Real GDP In response to the high unemployment rate and low level of real GDP at point El in the diagram above, the Federal Open Market Committee (the decision-making body of the Federal Reserve) decides to engineer a decrease in interest rates. If no other disturbances occurred, and the Fed calibrated its policy perfectly so that full employment equilibrium was restored, what price level would prevail at the...
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