Homework Answers
Option C.
- When government purchases or spending Increases, the Aggregate demand Increases.
- This will increase the real GDP and a rise in the price level.
- Hence, the rise in price level will cause a movement along the SRAS curve.
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9. An increase in government purchases would have what direct impact on the...
Consider the previous increase in government purchases today. (a) What is the impact on the IS...
Consider the previous increase in government purchases today. (a) What is the impact on the IS curve assuming that there is a multiplier effect involved? Can you mention a reason why the multiplier can be high? (b) What is the impact on the IS curve assuming that the Ricardian equivalence holds? Explain why. (c) How are the intercept and the slope of the IS curve different in cases (b) and (c) above?
1201 With AD and SRAS, what would happen to SRAS if foreign income rose? SRAS would...
1201 With AD and SRAS, what would happen to SRAS if foreign income rose? SRAS would shift right SRAS would shift left you move down along SRAS you move up along SRAS D 22 etion wh D2 55 If Y/L grew in the mathematical form of the per-worker production function what would you see in the graph of the per-worker production function? the curve shifted up either the curve shifted up or you moved right on the curve; either can...
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factors that shift the AD Curve include A) government purchases B) autonomous investment C) taxes D) all of the above E) none of the above 33. If government cuts taxes A) after tax income should increase shifting AD to the left to a lower cu B) after tax income should increase shifting AD to the right to a higher eq output C) after tax income and the equilibrium level of output remain unchanged D) after tax income remains unchanged but...
Suppose the Indian Ocean tsunami destroyed coffee production in Indonesia. On international coffee markets, this would...
Suppose the Indian Ocean tsunami destroyed coffee production in Indonesia. On international coffee markets, this would cause a a movement up and to the right along the supply curve for coffee. b a movement down and to the left along the supply curve for coffee. c a leftward shift of the coffee demand curve. d a leftward shift of the coffee supply curve. e a rightward shift of the coffee supply curve. If firms expect lower prices in the future,...
AT&T LTE 10:07 PM * 73% Question EOC 9.15 Unanswered How would we model an increase...
AT&T LTE 10:07 PM * 73% Question EOC 9.15 Unanswered How would we model an increase in the amount of capital available in an economy? Movement along the AS curve A Movement along the AD curve to the left C A shift to the right of the AS curve D A shift to the left of the AS curve 2 attempts left.
How would an increase in household's desire to save impact aggregate demand and the DD curve?...
How would an increase in household's desire to save impact aggregate demand and the DD curve? O A Aggregate demand shifts up, the DD curve shifts to the right. O B Aggregate demand shifts up, the DD curve shifts to the left. O C Aggregate demand shifts down, the DD cuve shifts to the right. O D Aggregate demand shifts down, the DD curve shifts to the left.
An increase in the price of blueberries would lead to a(n) a.increased supply of blueberries. b.a...
An increase in the price of blueberries would lead to a(n) a.increased supply of blueberries. b.a movement up and to the right along the supply curve for blueberries. c.a movement down and to the left along the supply curve for blueberries. d.Both a and b are correct Provide an explanation
OY 10. By referring to Figure 7-1, an increase in the money stock a shifts the...
OY 10. By referring to Figure 7-1, an increase in the money stock a shifts the LM schedule to the right from LMoto LM b shifts the LM schedule to the left from LMo to LM e leaves the LM curve unchanged at LM. d. shifts neither the IS nor the LM schedule. 11. Changes in all of the following shift the LM curve except a. the price level. b. income. c. the money supply. d. money demand. e. all...
IS. Which of the following best describes what happens when the price of oranges increases? a)...
IS. Which of the following best describes what happens when the price of oranges increases? a) There is a shift to the right in the demand curve for oranges b) There is a shift to the left of the demand curve for oranges c) There is a shift along the demand curve for oranges d) There is a no change in the demand curve for oranges 16. Which of the following best describes what happens when consumer income increases? a)...
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)...
1201 With AD and SRAS, what would happen to SRAS if foreign income rose? SRAS would shift right SRAS would shift left you move down along SRAS you move up along SRAS D 22 etion wh D2 55 If Y/L grew in the mathematical form of the per-worker production function what would you see in the graph of the per-worker production function? the curve shifted up either the curve shifted up or you moved right on the curve; either can...
factors that shift the AD Curve include A) government purchases B) autonomous investment C) taxes D) all of the above E) none of the above 33. If government cuts taxes A) after tax income should increase shifting AD to the left to a lower cu B) after tax income should increase shifting AD to the right to a higher eq output C) after tax income and the equilibrium level of output remain unchanged D) after tax income remains unchanged but...
AT&T LTE 10:07 PM * 73% Question EOC 9.15 Unanswered How would we model an increase in the amount of capital available in an economy? Movement along the AS curve A Movement along the AD curve to the left C A shift to the right of the AS curve D A shift to the left of the AS curve 2 attempts left.
How would an increase in household's desire to save impact aggregate demand and the DD curve? O A Aggregate demand shifts up, the DD curve shifts to the right. O B Aggregate demand shifts up, the DD curve shifts to the left. O C Aggregate demand shifts down, the DD cuve shifts to the right. O D Aggregate demand shifts down, the DD curve shifts to the left.
OY 10. By referring to Figure 7-1, an increase in the money stock a shifts the LM schedule to the right from LMoto LM b shifts the LM schedule to the left from LMo to LM e leaves the LM curve unchanged at LM. d. shifts neither the IS nor the LM schedule. 11. Changes in all of the following shift the LM curve except a. the price level. b. income. c. the money supply. d. money demand. e. all...
IS. Which of the following best describes what happens when the price of oranges increases? a) There is a shift to the right in the demand curve for oranges b) There is a shift to the left of the demand curve for oranges c) There is a shift along the demand curve for oranges d) There is a no change in the demand curve for oranges 16. Which of the following best describes what happens when consumer income increases? a)...
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)...
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