1. Other things equal, a decrease in the price level ________ the equilibrium interest rate and ________ equilibrium output.
a. increases; increases
b. increases; decreases
c. decreases; increases
d. decreases; decreases
We need at least 9 more requests to produce the answer.
1 / 10 have requested this problem solution
The more requests, the faster the answer.
1. Other things equal, a decrease in the price level ________ the equilibrium interest rate and ________ equilibrium output. a. increases; increases b. increases; decreases c. decreases; increases d. decreases; decreases
1. Which list contains only things that would make people want to hold more money? a. Interest rates decrease, the price level increases.b. Interest rates decrease, the price level decreases.c. Interest rates increase, the price level increases.d. Interest rates increase, the price level decreases.
If the price level decreases, the output level decreases and the interest rate increases, are you in a recession or an expansion? Which kinds of shocks would lead to this?
The exchange rate effect of a price increase is: if the US price level increases, then the Fed increases interest rate in order to stabilize the price level. As a result US dollar appreciates causing US exports to decreases. a. False b. True If the Fed increases money supply, then: a. the value of money decreases. b. the price level increases. c. Both of the above d. none of the above Which of the following will the Aggregate Demand curve...
Other things equal, an increase in the real interest rate leads to a. a decrease in the quantity of investment goods demanded b. an increase in the quantity of investment goods demanded c. no change in the quantity of investment goods d. either an increase or a decrease in the quantity of investment goods demanded depending on the initial amount of investment.
1. What occurs during a negative demand shock? Output increases and the price level decreases. Output and price level decrease. Output and price level increase. Output decreases and the price level increases. 2. In the equation of exchange, the term P × Q is the same as: the money supply. nominal GDP. national income. real GDP. 3. Expansionary monetary policy shifts the _____ curve to the _____. AD; right SRAS; left SRAS; right AD; left 4. The Taylor rule suggests...
If the equilibrium price decreases and the equilibrium output increases then what must have happened? a. Demand decreased b. Supply decreased c. Supply increased d. None of these because an increase in output would not happen if price increases e. Demand Increased
If the price level increases, then which of the following will happen? a. Interest rates will increase and hence investment will decrease b. Interest rate will decreases and investment will increase c. Both Interest rate and consumption will increase d. Both Interest rate and investment will decrease
The drop down menu for B is price level (decreases, increases, returns to initial value) and output (decreases, increases, returns to initial value) The drop down menu for D is price level (decreases, increases, returns to initial value) and output (decreases, increases, returns to initial value) Use the AD/AS model below to answer the following questions. In each case, assume the economy starts In long- and short-run equilibrium. The Macroecono in long- and short-run equilibrium LRAS SRAS 100.0... AD Real...
a) Prices and output increase. b) Prices and output decrease. c) Prices increase and output decreases. d) Prices decrease and output increases 18. Assume that the Canadian economy is experiencing a deflationary (recessionary) gap and neither the Government nor the Bank of Canada are not planning corrective measures (policies). What will happen to Canadian prices and output (real GDP) as the economy slowly regains macroeconomic equilibrium? a) Prices and output will increase. b) Prices and output will decrease. c) Prices...
A decrease in the price level a. decreases the quantity of goods and services demanded. b. increases the quantity of goods and services supplied in the short run. c. increases the quantity of goods and services demanded. d. decreases the quantity of goods and services supplied in the long run.