Homework Answers
If we talk in simple terms then generally Inflation are two types
Demand pull inflation and
Cost push inflation
The cost push inflation arises when there is a rise in the the cost of raw materials, and production materials
This will leads to have less supply in the market and causes shift of aggregatesupply curve to the left
The best example of this is negative supply shock when crude oil prices rises
Here options that is having word aggregate demand are eliminated because it will come under the demand pull inflation
Answer is option B
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Question 6 3.33 pts Graphically, cost-push inflation is shown as a: Orightward shift of the AS...
Question 16 If the price level increases in the United States relative to foreign...
Question 16 (1 point)If the price level increases in the United States relative to foreign countries, then American consumers will purchase more foreign goods and fewer U.S. goods. This statement describes:Question 16 options:the output effect.the shift-of-spending effect.the real-balances effect.the foreign purchases effect.Question 17 (1 point)Refer to the diagram. If the initial aggregate demand and supply curves are AD0 and AS0, the equilibrium price level and level of real domestic output will be:Question 17 options:E and B, respectively.F and A, respectively.G...
Note: There is only one correct option. 1. To get the equilibrium level of income in...
Note: There is only one correct option.
1. To get the equilibrium level of income in the simple Keynesian model [1] we multiply the autonomous aggregate spending by the multiplier 12 we add all the autonomous aggregate spending component and subtract the multiplier [3] we divide the multiplier by aggregate demand [4] we multiply the interest rate by the multiplier 2. An increase in the tax rate in the Keynesian model will 1 shift the aggregate spending curve upwards in...
A supply shock is A. an increase in the rate of inflation as a result of...
A supply shock is A. an increase in the rate of inflation as a result of expansionary fiscal policy, resulting in a leftward shift of the SRAS curve. B. a sudden increase in the price of an important natural resource, resulting in a leftward shift of the SRAS curve. O C. an increase potential GDP caused by a govemment expenditure multiplier, resulting in a leftward shift of the AD curve. D. an increase in both the inflation and the unemployment...
Question 38 A contractionary fiscal policy is shown as a: rightward shift in the economy's aggregate...
Question 38 A contractionary fiscal policy is shown as a: rightward shift in the economy's aggregate demand curve. rightward shift in the economy's aggregate supply curve. movement along an existing aggregate demand curve. leftward shift in the economy's aggregate demand curve. Question 39 An appropriate fiscal policy for a severe recession is: a decrease in government spending. a decrease in tax rates. appreciation of the dollar. an increase in interest rates.
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...
Illustrate and briefly explain the beginning of a demand-pull inflation. 3. When answering parts a and b,...
Illustrate and briefly explain the beginning of a demand-pull inflation. 3. When answering parts a and b, draw the relevant Phillips curve. Using a short-run Phillips curve, what is the effect on the unemployment rate if the inflation rate unexpectedly rises. Using a long-run Phillips curve, what is the effect on the unemployment rate if the inflation rate rises and people expect the rise. Explain how your answer to part a about the unexpected rise in the inflation rate changes in...
An expansionary fiscal policy is shown as a: A. Rightward shift in the economy's aggregate demand...
An expansionary fiscal policy is shown as a: A. Rightward shift in the economy's aggregate demand curve D. Leftward shift in the economy's aggregate demand curve
What might cause the Aggregate Demand curve to shift to the right? What does this mean...
What might cause the Aggregate Demand curve to shift to the right? What does this mean for the state of the economy? What might cause the Aggregate Demand curve to shift to the left? What does this mean for the state of the economy? Sometimes the Aggregate Supply curve is drawn as an upward sloping straight line--other times it is drawn initially flat, then upsloping, then very steep. How does the shape of the AS curve matter for the effect...
46. In the AD-AS model, an unexpected decrease in the growth rate of the money supply...
46. In the AD-AS model, an unexpected decrease in the growth rate of the money supply causes: A) a rightward shift of the AD curve and then a leftward shift of the SRAS curve. B) a rightward shift of the AD curve and then a rightward shift of the SRAS curve. C) a leftward shift of the AD curve and then a leftward shift of the SRAS curve. D) a leftward shift of the AD curve and then a rightward...
Section B B22 Expansionary demand management policy measures tend to… [1] raise the real GDP and...
Section B
B22 Expansionary demand management policy measures tend
to…
[1] raise the real GDP and inflation.
[2] increase price level and decrease real output.
[3] increase both inflation and the level of unemployment.
[4] Increase the production cost, which will decrease total
production.
B24 Which of the following is NOT the cause of
demand-pull inflation?
[1] increase in consumption spending.
[2] a decrease in interest rates.
[3] increase in net exports.
[4] rising commodity (e.g. oil) price.
B25 Cost-push...
Note: There is only one correct option.
1. To get the equilibrium level of income in the simple Keynesian model [1] we multiply the autonomous aggregate spending by the multiplier 12 we add all the autonomous aggregate spending component and subtract the multiplier [3] we divide the multiplier by aggregate demand [4] we multiply the interest rate by the multiplier 2. An increase in the tax rate in the Keynesian model will 1 shift the aggregate spending curve upwards in...
A supply shock is A. an increase in the rate of inflation as a result of expansionary fiscal policy, resulting in a leftward shift of the SRAS curve. B. a sudden increase in the price of an important natural resource, resulting in a leftward shift of the SRAS curve. O C. an increase potential GDP caused by a govemment expenditure multiplier, resulting in a leftward shift of the AD curve. D. an increase in both the inflation and the unemployment...
Question 38 A contractionary fiscal policy is shown as a: rightward shift in the economy's aggregate demand curve. rightward shift in the economy's aggregate supply curve. movement along an existing aggregate demand curve. leftward shift in the economy's aggregate demand curve. Question 39 An appropriate fiscal policy for a severe recession is: a decrease in government spending. a decrease in tax rates. appreciation of the dollar. an increase in interest rates.
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...
46. In the AD-AS model, an unexpected decrease in the growth rate of the money supply causes: A) a rightward shift of the AD curve and then a leftward shift of the SRAS curve. B) a rightward shift of the AD curve and then a rightward shift of the SRAS curve. C) a leftward shift of the AD curve and then a leftward shift of the SRAS curve. D) a leftward shift of the AD curve and then a rightward...
Section B
B22 Expansionary demand management policy measures tend
to…
[1] raise the real GDP and inflation.
[2] increase price level and decrease real output.
[3] increase both inflation and the level of unemployment.
[4] Increase the production cost, which will decrease total
production.
B24 Which of the following is NOT the cause of
demand-pull inflation?
[1] increase in consumption spending.
[2] a decrease in interest rates.
[3] increase in net exports.
[4] rising commodity (e.g. oil) price.
B25 Cost-push...
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