Answer : 4) The answer is option A.
When price level increase then the real value of wealth decrease. As a result of this, the consumption level decrease. As at higher price level consumers have to pay more money to purchase the products hence consumers' saving level decrease. Therefore, option A is correct.
Question 4 (3.33 points) An increase in the price level that reduces the real value of...
Question 1 An increase in the price level will ________ the real value of wealth and, as a result, there will be ________ the aggregate demand curve. have no effect on; no change in increase; a rightward shift of reduce; an upward movement along reduce; a leftward shift of increase; an upward movement along 2. A severe drought hits a country and reduces farm output by 50 percent. This will impact aggregate demand. short-run aggregate supply and aggregate demand. short-run...
16. to the wealth effect, an increase in the price level causes ease in real wealth and more purchases b. An incr C. A decrease d. rease in real wealth and fewer purchases se in real wealth and fewer purchases A decrease in r price level increase tends to reduce net exports, thereby reducing the amount of real goods a. The b. The international banner effect C. rvices purchased in the U.S. Economists refer to this phenomenon as international wealth...
Thank You! QUESTION 30 Aggregate price level x Real GDP in the price level and a decrease in the In the Aggregate Demand and Supply model (shown), an increase in nominal wages would cause an increase equilibrium level or real GDP in the short run. QUESTION 31 Aggregate price level Real GDP In the Aggregate Demand and Supply model (shown), if the government's budget deficit increases as a result of a tax cut with no cuts in spending, the result...
What is most likely to happen to the price level and real GDP if the Fed targets a lower Federal Funds Rate? Select one: a. Price level and real GDP will both increase b. Price level and real GDP will both decrease c. Price level will increase, but real GDP will decrease d. Price level will decrease, but real GDP will increase e. Real GDP will increase, but the price level would remain the same
What is most likely to happen to the price level and real GDP if the Fed raises the Required Reserves Ratio from 10% to 15%. Select one: a. Price level and real GDP will both increase b. Price level and real GDP will both decrease c. Price level will increase, but real GDP will decrease d. Price level will decrease, but real GDP will increase e. Monetary policies have no effect on the economy
Question 4 Which factor is an expansionary fiscal policy? A. an increase in taxes that reduces the budget deficit and decreases consumption B. a decrease in government spending C. an increase in unemployment benefits D. an increase in the money supply that decreases interest rates > Moving to another question will save this response.
32 2 A A severe drought hits a country and reduces farm output by 50 percent. In the short run, this will output and employment. . decrease; decrease decrease; increase decrease; have no effect on have no effect on; have no effect on increase; increase but not in the long run An increase in aggregate demand is beneficial in the short run because because output decreases the unemployment rate falls the unemployment rate falls; the price level rises wages decrease;...
options for b: increase, decrease, return to its initial value options for d: increase, decrease, return to its initial value The Macroeconomy in long- and short-run equilbrium LRAS 100 AD Real GDP (Y) reset Suppose a stock market crash reduces people's wealth. a. Drag the appropriate line in the correct direction to show the short-run effect on the AS- AD model. Suppose a stock market crash reduces people's wealth. a. Drag the appropriate line in the correct direction to show...
The following table shows the relationship between aggregate planned expenditure and real GOP in the hypothetical economy of Econoworld Real GDP bbons of 2007 dollars) Aggregate planned expenditure (billions of 2007 dollars) 100 200 300 420 1131 The level GPS 580 740 Ол ееn O Canadians' Wealth Rises Canadian net saving in the first quarter of 2017 was 522 billion Holdings of financial assets increased by 5162 bilion and the value of shares in corporations increased by $113 billion Explain...
Question 7 (3 points) AS2 AS1 AS3 Price Level AD Q₂Q, Q3 Real Domestic Output Which of the following will shift the aggregate supply (AS) curve from AS1 to AS2? O A change in consumer wealth. O A decrease in political stability. Technological advances. More labor resources, which cause wages to fall.