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- TRUE/FALSE We argued that cutting the corporate income tax will have supply side effects in that cutting the corporate income tax can potentially increase the pace of technological change with the implication being the aggregate supply will shift to the right.QUESTION 1 The aggregate demand curve: is upward sloping because a higher price level is necessary to make production profitable as production costs rise. is downward sloping because production costs decline as real output increases. O shows the amount of expenditures required to induce the production of each possible level of real output. O shows the amount of real output that will be purchased at each possible price level. O shows the various amounts of real output that businesses will produce at each price level.Solve the following questions.
- Problem 10-08 (Algo) If Mexican exports to Canada decline by $14 billion, by how much will Mexico's aggregate spending drop if its MPC is 0.80? Instructions: Enter your response as a whole number. billionThis question checks whether you understand the procedure for deriving the economy's aggregate demand curve. Think back to how this curve was derived in class. Please identify which of the following steps comes first, second, third, and fourth. First ___________ Second __________ Third ___________ Fourth ___________ Choose : O. See what level of R is implied by the monetary rule. O. Draw the Spending Curve. O. Identify the point of Spending Balance (where Y = C+1+G+ X). O. Pick an inflation rate.11. How do lower taxes affect aggregate demand? A) They increase disposable income, consumption, and aggregate demand. B) They reduce disposable income, consumption, and aggregate demand. C) They decrease corporate investment and aggregate demand. D) They increase aggregate supply and thus increase aggregate demand as well 12. Full-employment GDP is also known as A) realized GDP. B) potential GDP. C) politico-economic GDP. D) balanced-budget GDP.
- Subject :- Economy Consider a scenario of a closed economy in the short run where price level is fixed. Assume that both taxes and money supply increase in a way that keep output constant in equilibrium (suppose that the marginal propensity to consume is less than one). Which of the following may result from the policy change? a) It will lead to an increase in investment but a decrease in consumption. b) It will result in an increase in investment but a decrease in government spending. c) It will lead to an increase in investment and private saving. d) It will decrease investment but increase in public savingQuestion 14 Suppose investment spending falls and as a result firms reduce their level of production of good and services. We call this a supply shock. True False97) You observe that unplanned inventories are increasing. You predict that there will be ________. A) a business cycle B) an expansion C) a trough D) a recession 98) Business cycle turning points are A) unaffected by, and unrelated to the multiplier. B) easy to predict. C) brought about by changes in autonomous expenditures that are then subject to the multiplier effect. D) None of the above is correct. 99) Which of the following does NOT occur as the economy moves from an expansion to a recession? A) An initial decrease in autonomous spending is the trigger that creates the business cycle turning point. B) The change in planned spending exceeds the change in real GDP. C) The multiplier process reinforces any decrease in spending and pushes the economy into recession. D) Incomes fall during recessions as firms cut production in response to unplanned increases in inventories. 100) Which of the following is INCORRECT? A) Expansions usually begin…
- > A Moving to another question will save this response. 8 > » Question 18 Answer The economy is in a recession. The government enacts a policy to increase the real GDP by $10 billion. The MPS is 0.2. Assuming that the aggregate supply curve is horizontal across the range of GDP being considered, by how much should the government change spending or taxes in order to achieve its objective? Show your calculations., For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). E vE v 面 A v ... BIUS Paragraph Times New R. v 12pt POWERED BY TINY >Graphing Question The graph shows the aggregate demand and short-run aggregate supply curves for an economy Draw an aggregate demand curve that shows the effect of an increase in investment. Label it AD_(1) Then draw an aggregate demand curve that shows the multiplier effect of the increase in investment if the multiplier is positive. Label it AD_(2). Selected: none Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.(Urgent)
