After careful analysis, The Central Bank of Australia decided to decrease interest rates. This will directly affect theeconomy byO a. increasing the rate of inflationO b. decreasing tax ratesO c. encouraging more investments and consumptionO d. improving the level of exportsStructural unemployment issue will remain there undera. Intermediate zone of aggregate supplyb. Keynesian zone of aggregate supplyO c. Neoclassical zone of Aggregate supplyO d. Keynesian zone of aggregate demandContractionary fiscal policies intend toO a. Decrease aggregate demandO b. Decrease money supplyO c. Decrease aggregate supplyO d. Decrease unemployment

The government formulates policies to stabilize economic activity. The major policies are fiscal and…

After careful analysis, The Central Bank of Australia decided to decrease interest rates. This will directly affect the economy by O a. increasing the rate of inflation O b. decreasing tax rates O c. encouraging more investments and consumption O d. improving the level of exports Structural unemployment issue will remain there under O a. Intermediate zone of aggregate supply O b. Keynesian zone of aggregate supply O c. Neoclassical zone of Aggregate supply O d. Keynesian zone of aggregate demand Contractionary fiscal policies intend to O a. Decrease aggregate demand O b. Decrease money supply O c. Decrease aggregate supply O d. Decrease unemployment

After careful analysis, The Central Bank of Australia decided to decrease interest rates. This will directly affect the economy by O a. increasing the rate of inflation O b. decreasing tax rates O c. encouraging more investments and consumption O d. improving the level of exports Structural unemployment issue will remain there under O a. Intermediate zone of aggregate supply O b. Keynesian zone of aggregate supply O c. Neoclassical zone of Aggregate supply O d. Keynesian zone of aggregate demand Contractionary fiscal policies intend to O a. Decrease aggregate demand O b. Decrease money supply O c. Decrease aggregate supply O d. Decrease unemployment

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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b. If no policy is used to restore full employment, the interest rate and the price level will ? fall, raise or stay the same. choose one Since the long-run interest rate will be? lower or stay the same choose one investment will be? lower or larger. choose one If fiscal policy is used, the IS or LM curve will shift to the left or right. choose one The price level will fall or not change choose one but the long-run interest rate will either increase or decrease. choose one This will either reduce or increase (which one) the amount of private investment at the new equilibrium, at either a or b or c. choose one
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The graph below depicts an economy where an increase in aggregate demand has caused Inflation. Assume the government decides to conduct fiscal policy by changing taxes to bring Inflation under control. Price Level 160 150 140 130 120 110 100 90 80 70 60 50 Fiscal Policy LRAS AS Real GDP (billions of dollars) AD₁ AD 40 80 160 240 320 400 480 560 640 720 800 Instructions: Round your answers to 2 decimal places. If you are entering a negative number include a minus sign. a. How much does aggregate demand need to change to restore the economy to its long-run equilibrium? billion b. If the MPC is 0.75, how much do taxes need to change to shift aggregate demand by the amount you found in part a? $ billion Suppose Instead that the MPC is 0.5. c. How much does aggregate demand and taxes need to change to restore the economy to its long-run equilibrium? Aggregate demand needs to change by $ billion and taxes need to change by $ billion.
Question 27 One hypothesis for the lack of success of the rapid fiscal expansion in Japan financed by increased borrowing in the 1990s to prevent a sharp economic downturn is: Ricardian equivalence. O a large number of discouraged workers. a sharply depreciated Japanese yen. rising expected inflation. O high nominal interest rates. A
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The classical model focuses on O increasing goverment spending both the shifting of the aggregate demand curve and aggregate supply curve. O a shifting of the aggregate demand curve. O a shifting of the aggregate supply curve. Question 9 For the classical model to work, it is important that O people be willing to cooperate and compromise. O there be top/down centralized management of the economy. O the government is willing to help increase aggregate demand. O the value of debt is increased through inflation.
pols Homework (Ch 15) 4. Using fiscal policy to fight inflation Consider the hypothetical economy depicted on the graph. Initially, the economy operates below full-employment output at a price level of 105 and real GDP of $480 billion. Then aggregate demand (AD) increases from AD₁ to AD₂, moving the economy up along the intermediate and classical ranges of the aggregate supply (AS) curve. Real GDP increases to the full-employment output level of $540 billion, and the price level increases to 120. PRICE LEVEL (CPI) 130 125 120 115 110 100 95 90 85 80 400 420 440 AS AD₂ 460 REAL GDP (Billions of dollars) AD₁ 480 500 520 540 560 580 600 MacBook Pro (?) X
If you could find the MPS of the government spending question that would be good
Question 13 Include correctly labeled diagrams, if useful or required, In explaining your answers. A correctly labeled dl question prompts you to 'Calculate," you must show how you arrived at your final answer. Vander's economy is in short-run equilibrium with an inflationary gap of $360 billion, and the marginal propensity to save 0.1. the expected inflation rate is 2% and the natural rate of unemployment is 4% (b) Assume the government takes no policy action with regard to the state of Vander's economy. (i) What will happen to the actual rate of unemployment in the long run? Explain.(it) The flow will the long-run adjustment process be represented in the Phillips curve model? Explain. (c) Assume that instead of waiting for the long-run adjustment, the government of Vander is considering USA fiscal policy to addresses the inflationary gap of 360 billion(ii) How will the effect of the government's action in part (c)(i) be represented in the Phillips curve model(Ili) If the government…
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
An economy is currently in a short-run equilibrium at point a. Which fiscal policy action would MOST likely bring the economy back to full employment output? LRAS SRAS Aggregate Price Level (P) Aggregate Output (Q) increase in taxes decrease in interest rates increase in government spending O increase in transfer payments ADO 自 ˊˋ