Chapter 11: Aggregate Demand I: Building the IS-LM Model Question: The Keynesian cross shows ...------ of in the . --. and . run. Lütfen birini seçin: O a. equality / planned expenditure / income / short O b. determination / equilibrium income / the interest rate / long. determination / equilibrium income / the interest rate / long. O d. equality / planned expenditure/ income / long. determination /equilibrium income/ the interest rate/short.

Chapter 11: Aggregate Demand I: Building the IS-LM Model Question: The Keynesian cross shows ...------ of in the . --. and . run. Lütfen birini seçin: O a. equality / planned expenditure / income / short O b. determination / equilibrium income / the interest rate / long. determination / equilibrium income / the interest rate / long. O d. equality / planned expenditure/ income / long. determination /equilibrium income/ the interest rate/short.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Six Debates Over Macroeconomic Policy

Section: Chapter Questions

Problem 2CQQ

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Consider a keynesian macromodel Y=(C0+G+I) / (1-c) where C0 is autonomus consumption, G is government consumption expenditure, I is investment expenditure, c is the marginal propensity to consume. In this model, if lthere is an increse in both labor productivity and the marginal propensity to consume while autonomus expenditures remain unchanged, what will happen to the level of employment? a. can't say for sure b. decreses c. stays the same d. increases
Chapter 11: Aggregate Demand I: Building the IS-LM Model Henüz 1 2 3 cevaplanmadı 5,00 üzerinden Question: Which of the following is false? 10 11 12 15 İşaretlenmiş F Soruyu işaretle 19 20 O a. The Quantity theory assumes income level to change and Keynesian model assumes it to be fixed. Uygulamayı bitir ... Kalan süre 0:14:53 O b. The Fisher equation implies that an increase in inflation will also increase nominal interest rate since real interest rate is constant. The Quantity theory assumes real money balances to be constant but the liquidity preference (Keynes) theory assumes it to change. Od. The Quantity theory assumes nominal interest rate to be determined by price level and the liquidity preference (Keynes) theory assumes it to be determined by real interest rate. The liquidity preference (Keynes) theory implies that an increase in nominal interest rate will increase real interest rate since price level is fixed. O e.
Suppose that in Macroland the consumption and the investment have a negative relationship withthe real interest rate and positive relationship with Y. The Central Bank of the country targets acertain nominal interest rate and lets the money supply adjust in order to reach that interest rate.a. Draw a graph of the IS-LM model in this situation.b. Suppose that the Central Bank announces an increase of the interest rate in the future.Represent graphically the initial position of IS-LM curves. Then, show the IS-LM curves of thefuture, after the announced increase in the interest rate is implemented. (Assume that the ISis constant.).c. Suppose that agents today take into consideration the resulting income of the future whendeciding the amount of consumption and investment. Show what happens to the IS-LMcurves today after the announcement of the CB (tip: the CB is NOT increasing the nominalinterest rate today).d. The government decides to step in and avoid any deviation of Y from the initial…
Refer to Figure 9.1. Assume the economy is initially at point A. The eventual change from a shock that increases investment expenditure is best represented by which long - run equilibrium combination of price level and real GDP? Figure 9.1 LRAS OA Pz Y2 O B. P Y1 OC Pi Y2 OD. Pz Y, SRAS Real GOP If the MPC = 0.8, an increase in investment spending from $35 billion to $38 billion will increase real GDP by %3D O A. $3 billion. O B. $3.75 billion. OC. $15 billion. O D. $24 billion.
According to the Keynesian model, which of the following would NOT increase aggregate demand? Government expands its social projects and increases taxes to balance the budget а. O b. A decrease in the number of employees in the government agencies c. Government drops the taxes for private businesses O d. Government establishes a new agency that helps the unemployed to find a job е. Government changes the laws whereby the tax of the interest earned becomes changes from a positive number to zero.
09. The left-hand Which of the following statements is tru about the diagrams above depicting the macroeconommy in both Keynesian and Classical frameworks and a change from AEo to AE* and ADo to AD*? a) The left-hand diagrams show the effect of an increase in Aggregare Expenditures (and Aggregate Demand), where the short-run Aggregate Supply is horizontal, meaning a constant products price level. b) The right hand diagrams show the effect of an increase in Aggregate Expenditrues (and Aggregate DEmand), where short-run Aggregate Supply is vertical (constant Aggregate Quantity Supplied). c) The left-hand diagrams illustrate the Keynesian range of the shor-run Aggregate Supply curve, where Keynesian expansionary policy does not cause any inflation and thus is very effective. d) The right-hand diagrams illustrate the Classical or Monetarist range of the short-run Aggregate Supply curve, where Keynesian expansionary policy is totally dissipated in…
Don't use chatgpt, I will 5 upvotes Suppose the aggregate demand curve shifts leftward from ADO. Where does the economy move initially according to the rigid Keynesian view? r:mann PO, Y4 PI, Y2 P3, YO P4, YO
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Chapter 11: Aggregate Demand I: Building the IS-LM Model Question: The Keynesian model suggests that should be preferred over .... since the ...... is larger than the ...***.... Lütfen birini seçin: O a fiscal policy/ monetary policy / unplanned changes in inventories / marginal propensity to consume. b. fiscal policy / monetary policy /impact of money supply/marginal propensity to consume. OC. government spending/ tax cuts/ tax multiplier /government-spending multiplier. d. government spending/tax cuts/government-spending multiplier / tax multiplier. monetary policy/fiscal policy/impact of money supply/marginal propensity to consume.
2. a. Suppose policymakers passes legislation that significantly reduces taxes. Use the Keynesian-cross model to illustrate graphically the impact of a reduction in taxes on the equilibrium level of income. Be sure to label: i. the axes; ii. the curves; iii. the initial equilibrium values; iv. the direction the curve shifts; and v. the terminal equilibrium values. 'sl b. Explain in words what happens to equilibrium income as a res" of the tax cut and the time horizon appropriate for this analysis.
Which of the following will NOT shift the ADT curve? O a. A rise in government spending O b. A rise in exports Ос. A rise in interest rates O d. A rise in consumer confidence
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