A short-run increase in government spending causes the currency to ______ and output to ______.
A short-run increase in government spending causes the currency to ______ and output to ______.
Homework Answers
- To increase the real GDP growth, increase/rise.
A short-run increase in government spending leads to the rise in aggregate demand causes the currency to increase the real GDP growth rate and output to rise.
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A short-run increase in government spending causes the currency
to ______ and output to ______.
An increase in government spending raises income: a. and the interest rate in the short run,...
An increase in government spending raises income: a. and the interest rate in the short run, but leaves both unchanged in the long run. b. in the short run, but leaves it unchanged in the long run, while lowering investment. c. in the short run, but leaves it unchanged in the long run, while lowering consumption. d. and the interest rate in both the short and long runs.
Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise....
Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. fall. remain unchanged.
Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise....
Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. fall. remain unchanged. If investors believe a country's currency is fixed at an overvalued level, the central bank's supply of foreign reserves will most likely be rising falling. remaining unchanged.
Which of the following would increase output in the short run? A. An increase in stock...
Which of the following would increase output in the short run? A. An increase in stock prices makes people feel wealthier B. Government spending increases C. Firms chose to purchase more investment goods D. All of the above are correct
On the graphs below, show the impact of an increase in government spending in the short...
On the graphs below, show the impact of an increase in
government spending in the short and long run. Assume that the
central bank does not change their inflation target. Consider both
the impacts on real GDP and also on the long run real rate of
interest (r*).
Real Interest Rate (r) AE Aggregate Expenditure Real Interest Rate (r) Monetary Policy Reaction Curve Long-Run Real Interest Rate (r) Target Inflation (1) Inflation (a) Long-Run Aggregate Supply Curve (LRAS) π↑ SRAS...
7,8 Question Completion Status: QUESTION 7 Under standard assumptions, in the short run, currency devaluation causes...
7,8
Question Completion Status: QUESTION 7 Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. fall. O remain unchanged. QUESTION 8 Which type of global exchange rate regime creates an asymmetry, with only one country able to conduct independent monetary policy? Floating exchange rates Gold standard Managed float Reserve currency system QUESTION 9 then country A's currency will be
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to...
1. When the government increases spending by issuing more bonds, it causes: a) nations currency to appreciate b)exports increase c)interest rates decrease d)demand for loanable funds decrease e)decreases merchandise trade deficit 2. When the Fed decreases money supply to combat inflation, it cuases: a)the price of the U.S. dollar to decrease b) capital to flow out of the US c)an increase in the merchandise trade deficit d)an increase in private spending e) a decrease in the interest rates 3. Which...
If the economy is close to full employment, an increase in government spending may increase GDP...
If the economy is close to full employment, an increase in government spending may increase GDP in the short run, but in the long run, this policy may: reduce investment in new capital. make domestic businesses less competitive in international markets if the dollar appreciates in value raise interest rates and reduce consumer expenditures on cars and new houses All of these options are correct Which of the following is considered contractionary fiscal policy? The government increases defense spending due...
8. Economic fluctuations I The following graph shows the economy in long-run equilibrium at the expected...
8. Economic fluctuations I The following graph shows the economy in long-run equilibrium at the expected price level of 120 and the natural level of output of $300 billion. Suppose the government increases spending on building and repairing highways, bridges, and ports. Shift the short-run aggregate supply (AS) curve or the aggregate demand (AD) curve to show the short-run impact of the increase in government spending. In the short run, the increase in government spending on infrastructure causes the price level to _______...
1. For each of the following events, explain the short-run and long-run effects on output and...
1. For each of the following events, explain the short-run and long-run effects on output and price level, assuming policymakers take no action. a. The stock market declines sharply, reducing consumers’ wealth. b. The federal government increases spending on national defense. c. A technological improvement raises productivity. d. A recession overseas causes foreigners to buy fewer U.S. goods. e. Household decide to save a larger share of their income. f. Increased job opportunities overseas cause many people to leave the...
Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. fall. remain unchanged.
Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. fall. remain unchanged. If investors believe a country's currency is fixed at an overvalued level, the central bank's supply of foreign reserves will most likely be rising falling. remaining unchanged.
On the graphs below, show the impact of an increase in
government spending in the short and long run. Assume that the
central bank does not change their inflation target. Consider both
the impacts on real GDP and also on the long run real rate of
interest (r*).
Real Interest Rate (r) AE Aggregate Expenditure Real Interest Rate (r) Monetary Policy Reaction Curve Long-Run Real Interest Rate (r) Target Inflation (1) Inflation (a) Long-Run Aggregate Supply Curve (LRAS) π↑ SRAS...
7,8
Question Completion Status: QUESTION 7 Under standard assumptions, in the short run, currency devaluation causes a country's output to O rise. fall. O remain unchanged. QUESTION 8 Which type of global exchange rate regime creates an asymmetry, with only one country able to conduct independent monetary policy? Floating exchange rates Gold standard Managed float Reserve currency system QUESTION 9 then country A's currency will be
If the economy is close to full employment, an increase in government spending may increase GDP in the short run, but in the long run, this policy may: reduce investment in new capital. make domestic businesses less competitive in international markets if the dollar appreciates in value raise interest rates and reduce consumer expenditures on cars and new houses All of these options are correct Which of the following is considered contractionary fiscal policy? The government increases defense spending due...
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