2. Shifts in aggregate demand
Which of the following formulas best defines GDP using the expenditure method?
a- AD=I+G+(X−M)
b- AD=C−I−G+(X−M)
c- AD=C+I+G+(X−M)A
d- AD=C+I+G+X
Homework Answers
a) "D"
AD=C+I+G+X this formula represents GDP in expenditure method.
b)
Add Answer to:
2. Shifts in aggregate demand
Which of the following formulas best defines GDP using the
expenditure...
Which of the following best describes the relationship between aggregate expenditure and real GDP? O A....
Which of the following best describes the relationship between aggregate expenditure and real GDP? O A. If aggregate expenditure falls short of real GDP, inventories will accumulate and real GDP and aggregate income will fall in future. O B. If aggregate expenditure falls short of real GDP, inventories will decrease and real GDP and aggregate income will fall in future. O c. If aggregate expenditure falls short of real GDP, inventories will accumulate and real GDP and aggregate income will...
Explain the effect of each of the following events on Mexico's aggregate demand. If the government...
Explain the effect of each of the following events on Mexico's aggregate demand. If the government of Mexico cuts income taxes, Mexico's aggregate demand O A. increases, and the aggregate demand curve shifts leftward O B. increases, and the aggregate demand curve shifts rightward O C. is unchanged, but the price level falls and quantity of real GDP demanded increases OD. decreases because it decreases the amount the government can spend O E. is unchanged because it just decreases the...
Derive the aggregate expenditure function, and calculate the equilibrium real GDP.. Determine the expenditure multiplier using aggregate expenditure function slop value... What is the expenditure multiplier? ... Everything else the same, by how much do
Question#1A The following are details of the expenditure of a very small economy. All the autonomous expenditures are given in $ thousand. C = 200 + 0.8Yd I = 10 G = 50 T = 0.05Y X = 40 M = 0.1Y Derive the aggregate expenditure function, and calculate the equilibrium real GDP Determine the expenditure multiplier using aggregate expenditure function slope value Question#1B Suppose the slope of the AE curve is 0.80. i) What is the expenditure multiplier? ii) Everything else the same, by how much does equilibrium aggregate expenditure...
Using the IS-LM and Aggregate Supply-Aggregate Demand (AS-AD) models of Chapter 12 with a flat short-run...
Using the IS-LM and Aggregate Supply-Aggregate Demand (AS-AD) models of Chapter 12 with a flat short-run AS curve (that is, completely sticky prices), suppose the economy is at the natural rate of unemployment and so, at long-run equilibrium. Suddenly, taxes are reduced with no change in government spending. Tell me (or show on a graph) what happens to the IS and/or LM curves. Show on a different graph what happens on the AS-AD diagram in the short-run (drawing in the...
14000 Aggregate Expenditures when P= 100 12000 10000 8000 Planned Aggregate Expenditure (AE) - 6000 -- 4000 - - 2000 07...
14000 Aggregate Expenditures when P= 100 12000 10000 8000 Planned Aggregate Expenditure (AE) - 6000 -- 4000 - - 2000 07 O 2000 4000 6000 8000 10000 12000 14000 Real GDP (Y) Aggregate Demand 140 Price Level 120 0 2000 4000 6000 8000 1000012000140001600018000 In the figures above, if autonomous spending rises for any reason other than a decrease in the price level, then: The Aggregate Expenditure curve will shift down and there will be a downward movement along the...
In the graph, the initial aggregate supply curve is AS and the initial aggregate demand curve...
In the graph, the initial aggregate supply curve is AS and the initial aggregate demand curve is ADo Some events that could have changed aggregate demand from AD, to AD are O A. a fall in the exchange rate or Price level 0 AS AS an increase in expected future inflation O B. a decrease in the money wage rate or 105 10 an increase in potential GDP ( 100 C. a decrease in expected future income or a decrease...
The following table shows the real output demanded and supplied at various price levels in a...
The following table shows the real output demanded and supplied at various price levels in a hypothetical economy. Real Output Demanded Price Level Real Output Supplied (Billions of dollars) (Index number) (Billions of dollars) 40 160 340 80 120 320 120 80 280 200 40 200 320 20 80 On the following graph, use the blue points (circle symbol) to plot the aggregate demand (Initial AD) curve for the economy. Then use the orange points (square symbol) to plot the...
ONLY 5-11 BELOW A5-10. Suppose the following aggregate expenditure model describes an economy: C = 100...
ONLY 5-11 BELOW A5-10. Suppose the following aggregate expenditure model describes an economy: C = 100 + (5/6)Yd T = (1/5)Y I = 200 G = 400 X = 300 IM = (1/3)Y where C is consumption, Yd is disposable income, T is taxes, Y is national income, I is investment, G is government spending, X is exports, and IM is imports. (a) Derive a numerical expression for aggregate expenditure (AE) as a function of Y. Calculate the equilibrium level...
Problem Suppose you are given the following macroeconomics data (in million) about an economy: Aggregate Demand:...
Problem Suppose you are given the following macroeconomics data (in million) about an economy: Aggregate Demand: ??=?+?+?+?? Short-run Aggregate Supply (SRAS): ?=20,000? ❖ ? is the aggregate price level. ❖ Consumption spending: ?=??,???+?.???−??,???? ❖ I = $5,000 G = T = $200 X = M = $1,000 A. Find the equation for the AD curve for this economy. (1 point) B. Find the short-run equilibrium level of real GDP (???) and the aggregate price level (?). (2 points) C. Assume...
Using the graphs below, show the change in aggregate demand for each of the following scenarios. a. There Is a change I...
Using the graphs below, show the change in aggregate demand for each of the following scenarios. a. There Is a change In government policy that causes an Increase In Interest rates Instructions: Use the tool provided AD to plot the new aggregate demand curve. Plot only the endpolnts of the line (2 polnts total). Aggregate Demand Tools AD AD Real GDP b. After the election, consumers begin to feel optimistic about the future of the economy, which causes an Increase...
Which of the following best describes the relationship between aggregate expenditure and real GDP? O A. If aggregate expenditure falls short of real GDP, inventories will accumulate and real GDP and aggregate income will fall in future. O B. If aggregate expenditure falls short of real GDP, inventories will decrease and real GDP and aggregate income will fall in future. O c. If aggregate expenditure falls short of real GDP, inventories will accumulate and real GDP and aggregate income will...
Explain the effect of each of the following events on Mexico's aggregate demand. If the government of Mexico cuts income taxes, Mexico's aggregate demand O A. increases, and the aggregate demand curve shifts leftward O B. increases, and the aggregate demand curve shifts rightward O C. is unchanged, but the price level falls and quantity of real GDP demanded increases OD. decreases because it decreases the amount the government can spend O E. is unchanged because it just decreases the...
Using the IS-LM and Aggregate Supply-Aggregate Demand (AS-AD) models of Chapter 12 with a flat short-run AS curve (that is, completely sticky prices), suppose the economy is at the natural rate of unemployment and so, at long-run equilibrium. Suddenly, taxes are reduced with no change in government spending. Tell me (or show on a graph) what happens to the IS and/or LM curves. Show on a different graph what happens on the AS-AD diagram in the short-run (drawing in the...
14000 Aggregate Expenditures when P= 100 12000 10000 8000 Planned Aggregate Expenditure (AE) - 6000 -- 4000 - - 2000 07 O 2000 4000 6000 8000 10000 12000 14000 Real GDP (Y) Aggregate Demand 140 Price Level 120 0 2000 4000 6000 8000 1000012000140001600018000 In the figures above, if autonomous spending rises for any reason other than a decrease in the price level, then: The Aggregate Expenditure curve will shift down and there will be a downward movement along the...
In the graph, the initial aggregate supply curve is AS and the initial aggregate demand curve is ADo Some events that could have changed aggregate demand from AD, to AD are O A. a fall in the exchange rate or Price level 0 AS AS an increase in expected future inflation O B. a decrease in the money wage rate or 105 10 an increase in potential GDP ( 100 C. a decrease in expected future income or a decrease...
Using the graphs below, show the change in aggregate demand for each of the following scenarios. a. There Is a change In government policy that causes an Increase In Interest rates Instructions: Use the tool provided AD to plot the new aggregate demand curve. Plot only the endpolnts of the line (2 polnts total). Aggregate Demand Tools AD AD Real GDP b. After the election, consumers begin to feel optimistic about the future of the economy, which causes an Increase...
Most questions answered within 3 hours.
-
Is Goldicks negligent conduct committed within the
scope of his employment for Lapp Roofing liable
asked 12 minutes ago -
What are the effects of IMC-based PID controller and
Zeigler-Nicholas parameters on the specifications of a...
asked 16 minutes ago -
1. Explain the tem (10) Key Success Factors in Contemporary
Selling
asked 30 minutes ago -
It's absolutely linked, the effectiveness of the CP Coordinator
and the success of the business impact...
asked 39 minutes ago -
where does leadership reside in belief theory
asked 39 minutes ago -
Jane wants to purchase a bond with a face value of $8,595 and a
bond rate...
asked 41 minutes ago -
A bolt manufacturer wants to investigate the machine that
produces bolts with a diameter of 0.28...
asked 43 minutes ago -
DP Gumby produces sleeveless sweaters. He can separate the
demand function into a domestic component: QD=...
asked 1 hour ago -
6) Weak acids are not very soluble in water. A). TRUE B).
FALSE
The answer says...
asked 1 hour ago -
Lab #2 Address Book Unsorted List (C++)
Using classes, design an online address book to keep...
asked 1 hour ago -
Tucson Machinery, Inc., manufactures numerically controlled
machines, which sell for an average price of $0.5 million...
asked 1 hour ago -
Review the referenced paper by Melse (2008). Describe the
research question being addressed. Discuss the methods...
asked 1 hour ago