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cumplan Status It is much easier to make dunges and QUESTIONS NAS scargots, de to CMD-11 Which of the graph shows the act of

Question Completion Status QUESTION 15 Suppose the econom 05 45 03 02 01 QUESTION 16 et automatic stabiliers in the federal b

QUESTION 22 Price level Aggregate supply Old AD Decrensed AD Output Which of the following could have caused the change shown

QUESTION 25 Use the graph above to answer the question o In the short on what is the current ination rate and real GDP level

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Answer #1

8. The decrease in investment spending will decrease aggregate demand ( AD = consumption +investment + government spending), shifting the AD curve leftward. This change is shown by Figure B.

15. The economy was initially operating at point B. A decrease in net export will decrease aggregate demand (AD = C + I + G + Nx). This will shift the AD curve leftward, causing the short-run equilibrium to occur at point D. The economy's new inflation rate in the short run is 2.

22. A decrease in wealth makes people feel poor and therefore they will reduce their consumption spending. This will decrease AD, shifting the AD curve leftward.

Answer: option 1

25. Short-run equilibrium occurs at point C, where AD and SRAS intersects. At this equilibrium, the inflation rate is 4% and real GDP growth rate is 5%.

Answer: option 3

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