Homework Answers
A dis-equilibrium will be caused due to increase in demand and a fall in supply. Hence, to make the condition back to normal, the government will have to increase the taxes. Increasing the taxes will lead to a fall in demand and hence equilibrium will be restored.
A GDP decline, leads to less cash, hence a decline in tax revenue, which in turn leads to a restraint aggregate demand.
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QUESTION 8 In Productovia, aggregate demand increases and aggregate supply decreases. Based on the shifts in these...
1. Unemployment increases and inflation decreases whenever: a. aggregate demand shifts right b. aggregate demand shifts...
1. Unemployment increases and inflation decreases whenever: a. aggregate demand shifts right b. aggregate demand shifts left c. aggregate supply shifts left d. aggregate supply shifts right 2. Suppose that the output was two hundred million in 2017 and two hundred and ten million in 2018. Then, then the growth rate in GDP between 2017 and 2018 would be? a. 10% b. 5% c. 15% d. 20% 3. Suppose that the unemployment rate exceeds the natural rate, then a. the...
When taxes are cut, aggregate demand ________ and aggregate supply ________. A. decreases; decreases B. increases;...
When taxes are cut, aggregate demand ________ and aggregate supply ________. A. decreases; decreases B. increases; does not change C. decreases; increases D. increases; increases E. increases; decreases e
Question 56 (1 point) Consider the aggregate supply-aggregate demand model. How does an increase in aggregate...
Question 56 (1 point) Consider the aggregate supply-aggregate demand model. How does an increase in aggregate demand affect the unemployment rate and the inflation rate? LRAS: SRAS Price level (GDP deflator 2009 = 100) AD AD AD GDP, GDP, GDP AD AD AD2 GDP, GDP, GDP; Real GDP (trillions of 2009 dollars) The unemployment rate decreases and the inflation rate increases. ia The unemployment rate increases and the inflation rate decreases. Both the unemployment rate and the inflation rate increase....
The table gives the aggregate demand schedule, the short run aggregate supply schedule, and the long run aggregat...
The table gives the aggregate demand schedule, the short run aggregate supply schedule, and the long run aggregate supply schedule for an economy What is the quantity of real GDP at the short-run macroeconomic equilibrium? Price level (GDP deflator) The quantity of real GDP at the short-run macroeconomic equilibrium is s billion 100 Real GDP Real GDP Real GDP supplied supplied demanded in short run in long run (billions of 2007 dollars) 200 500 350 500 500 500 400 650...
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to...
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to the right. tne long-run aggregate supply curve shifts to the left. C) the 20) When aggregate demand curve shifts to the left. the short-run aggregate supply curve shifts to the left. t spending without an accompanying increase 21) An increase in govenment spending n taxes demand A) does not increase aggregate B) would effectively eliminate an inflationary gap. Q mquires additional govemment borrowing spending...
1) The long-run aggregate supply curve shifts to the right when there is A) a decrease...
1) The long-run aggregate supply curve shifts to the right when there is A) a decrease in the total amount of capital in the economy. B) a decrease in the total amount of labor supplied in the economy. C) a decrease in the available technology. D) a decline in the natural rate of unemployment. 2) The short-run aggregate supply curve shifts to the right when A) output gap is higher. B) output gap is lower. C) expected inflation is higher....
QUESTION 23 Which of the following shifts aggregate demand to the left? a. The price level...
QUESTION 23 Which of the following shifts aggregate demand to the left? a. The price level falls. b. The dollar depreciates for some reason other than a change in the price level. c. Stock prices fall for some reason other than a change in the price level. d. The price level rises. QUESTION 24 Aggregate demand shifts left when the government a. decreases taxes. b. cuts military expenditures. c. creates a new investment tax credit d. None of the above...
If aggregate demand decreases and aggregate supply increases, the price level ________.
If aggregate demand decreases and aggregate supply increases, the price level ________.
When the money demand curve shifts right and the money supply is unchanged, the equilibrium price...
When the money demand curve shifts right and the money supply is unchanged, the equilibrium price level decreases and the equilibrium value of money increases. true false The money supply in Grayfield is $8 billion. Nominal GDP is $32 billion and real GDP is $24 billion. The central bank of Grayfield has instituted a policy of zero inflation. Assuming that velocity is stable, if real GDP grows by 2.5 percent this year then the central bank of Grayfield will increase...
If the Fed's policies aim to increase aggregate demand, the Fed must fear A. a supply...
If the Fed's policies aim to increase aggregate demand, the Fed must fear A. a supply shock that increases aggregate supply. B. a supply shock that decreases potential GDP. C. stagflation. D. recession. E. inflation.
1. Unemployment increases and inflation decreases whenever: a. aggregate demand shifts right b. aggregate demand shifts left c. aggregate supply shifts left d. aggregate supply shifts right 2. Suppose that the output was two hundred million in 2017 and two hundred and ten million in 2018. Then, then the growth rate in GDP between 2017 and 2018 would be? a. 10% b. 5% c. 15% d. 20% 3. Suppose that the unemployment rate exceeds the natural rate, then a. the...
Question 56 (1 point) Consider the aggregate supply-aggregate demand model. How does an increase in aggregate demand affect the unemployment rate and the inflation rate? LRAS: SRAS Price level (GDP deflator 2009 = 100) AD AD AD GDP, GDP, GDP AD AD AD2 GDP, GDP, GDP; Real GDP (trillions of 2009 dollars) The unemployment rate decreases and the inflation rate increases. ia The unemployment rate increases and the inflation rate decreases. Both the unemployment rate and the inflation rate increase....
The table gives the aggregate demand schedule, the short run aggregate supply schedule, and the long run aggregate supply schedule for an economy What is the quantity of real GDP at the short-run macroeconomic equilibrium? Price level (GDP deflator) The quantity of real GDP at the short-run macroeconomic equilibrium is s billion 100 Real GDP Real GDP Real GDP supplied supplied demanded in short run in long run (billions of 2007 dollars) 200 500 350 500 500 500 400 650...
the government cuts tases or inereases government spending 20) ) the aggregate demand curve shifts to the right. tne long-run aggregate supply curve shifts to the left. C) the 20) When aggregate demand curve shifts to the left. the short-run aggregate supply curve shifts to the left. t spending without an accompanying increase 21) An increase in govenment spending n taxes demand A) does not increase aggregate B) would effectively eliminate an inflationary gap. Q mquires additional govemment borrowing spending...
1) The long-run aggregate supply curve shifts to the right when there is A) a decrease in the total amount of capital in the economy. B) a decrease in the total amount of labor supplied in the economy. C) a decrease in the available technology. D) a decline in the natural rate of unemployment. 2) The short-run aggregate supply curve shifts to the right when A) output gap is higher. B) output gap is lower. C) expected inflation is higher....
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