25 - Which of the following factors would not necessarily affect the position of the DD curve? a) monetary policy b) price levels c) export demand 742002 d) taxes government spending
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![25 - Which of the following factors would not necessarily affect the position of the DD curve?
a)
monetary policy
b)
price levels
c)
export demand
742002
d)
taxes
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- 8. Using policy to stabilize the economy The government possesses the tools necessary to influence the output level in the short run through use of monetary and fiscal policy. However, there is some debate regarding whether the government should attempt to stabilize the economy. Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply. The current tax system acts as an automatic stabilizer. Businesses make investment plans many months in advance. Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses. Changes in government purchases and taxation must be passed by both houses of Congress and signed by the president. Which of the following policies are examples of automatic stabilizers? Check all that apply. Personal income taxes The discount rate The federal funds rate6. Use of discretionary policy to stabilize the economy Should the government use monetary and fiscal policy in an effort to stabilize the economy? The following questions address the issue of how monetary and fiscal policies affect the economy, as well as the pros and cons of using these tools to combat economic fluctuations. The following graph plots hypothetical aggregate demand (AD), short-run aggregate supply (AS), and long-run aggregate supply (LRAS) curves for the U.S. economy in January 2026. Suppose the government chooses to intervene in order to return the economy to the natural level of output by using ▾ policy. Depending on which curve is affected by the government policy, shift either the AS curve or the AD curve to reflect the change that would successfully restore the natural level of output.1. As a result of an economic policy change, interest rates fall, and consumption and investment rise. This is consistent witha) A monetary expansion.b) A fiscal expansion.c) A fiscal contraction.d) A monetary contraction. 2. Under what conditions might the application of fiscal and monetary policy simply cause a change in the price level, and no change the level of national income.a) The aggregate supply curve is horizontal.b) The aggregate supply curve is vertical.c) The short run aggregate supply curve is flatter than the long run aggregate supply curve.d) The long run aggregate supply curve is flatter than the short run aggregate supply curve. 3. How might government best attempt to address the threat of long-run, structural unemployment, resulting from the globalisation of the economic environment?a) Adopt protectionist measures, such as tariffs.b) Give trade unions a formal role in economic planning.c) Increase subsidies for job retention in manufacturing industry.d) Improve…
- Note:- Please give all possible answer for both question options are given below. 8. Using policy to stabilize the economy The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following are arguments in favor of active stabilization policy by the government? Check all that apply. The Fed can effectively respond to excessive pessimism by expanding the money supply and lowering interest rates. The current tax system acts as an automatic stabilizer. Shifts in aggregate demand are often the result of waves of pessimism or optimism among consumers and businesses. Businesses make investment plans for many months in advance. Which of the following are examples of automatic stabilizers? Check all that apply. Corporate income taxes The discount rate Personal income taxes1. Which of the following is a major area of disagreement between activists and nonactivists? Group of answer choices -Activists believe discretionary macroeconomic policy can be applied in a manner that will enhance economic stability. Nonactivists disagree. -Activists believe monetary policy is more potent than fiscal policy. Nonactivists disagree. -Activists believe changes in monetary and fiscal policy exert their effects instantaneously. Nonactivists think they work only with a substantial lag. -Nonactivists think macroeconomic policy is sometimes motivated by the pursuit of political gain. Activists disagree. Which of the following is correct?14. Of the following secondary effects which dissipate the strength or effectiveness of expansionary Keynesian macroeconomic policy, which one is associated with rising interest rates because of greater government borrowing to finance a budget deficit? a) Crowding out effect b) Inflation c) transactions demand for money d) sovereign debt crisis e) All the above
- 7. Use of discretionary policy to stabilize the economy Should the government use monetary and fiscal policy in an effort to stabilize the economy? The following questions address the issue of how monetary and fiscal policies affect the economy, as well as the pros and cons of using these tools to combat economic fluctuations. The following graph plots hypothetical aggregate demand (AD), short-run aggregate supply (AS), and long-run aggregate supply (LRAS) curves for the U.S. economy in February 2026. Suppose the government chooses to intervene in order to return the economy to the natural level of output by using Depending on which curve is affected by the government policy, shift either the AS curve or the AD curve to reflect the change that would successfully restore the natural level of output. AS 110 X AD 70 LRAS 24 26 OUTPUT (Trillions of dollars) PRICE LEVEL 150 130 50 20 22 28 30 AD policy. AS Suppose that in February 2026 the government successfully carries out the type of…Question # One: After we study the Bonds Market, study the table below and fill in the blanks in it The Change Effect on The The The Supply or on Direction Effecteffect Demand? of shift on of i in the PB Curve An increase in the MPS An increase of liquidity of bonds Government budget is in deficit Expected returns on other assets increases An increase in the risk of bonds4. Use of discretionary policy to stabilize the economy The following graph shows a hypothetical aggregate demand curve (AD), short-run aggregate supply curve (SRAS), and long-run aggregate supply curve (LRAS) for the U.S. economy in February 2020. Suppose the government decides to intervene to bring the economy back to its potential output. In this case, the government would engage in policy. Depending on which curve is affected by the government policy, shift either the SRAS curve or the AD curve to reflect the change that would successfully restore potential output. 150 SRAS AD 130 110 SRAS AD 70 LRAS 50 20 22 24 26 28 30 OUTPUT (Trillions of dollars) PRICE LEVEL
- il YouTube CENGAGE MINDTAP PRICE LEVEL Aplia Homework: Fiscal Policy Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.7. The following graph shows the aggregate demand curves (AD₁ and AD2), the short-run aggregate supply curve (SRAS), and the long-run aggregate supply curve (LRAS). The economy is currently at point A. MAR 7 140 136 Maps Translate 132 128 124 120 116 112 108 350 450 LRAS AD₁ SRAS 124 Aa O AD2 550 650 750 850 REAL GDP (Billions of dollars) 950 1050 1150 115 13 (?) 11,094 15 4 zoom W 19801&18=1995638042&snapshotid.... te 2 .35)Why is the 1982 recession called a textbook recession? Select one: a. The textbooks say inflation was not a problem in 1982 and Paul Volcker made a mistake by causing a recession b. The textbooks say that if inflation is too high then the Fed has to raise the interest rate to curb spending c. The textbooks say that if inflation is too high then the Fed must lower the interest rate to curb (decrease) spending d. The textbooks say that if inflation is too high then the Fed must do nothing8. Refer to the diagrams. The multiplier associated with fiscal policy that increases aggregate demand from AD1 to AD2 is less in graph b than in a because: * AS AS AD, AD, AD, AD2 X YZ Real GDP 0. X YZ Real GDP (a) (b) Graph a represents a closed economy while b depicts an open economy. Inflation occurs in b and not in a The economy is in the vertical range of aggregate supply in a and not inb. Graph a represents an open economy while b depicts a closed economy. Price level Price level
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