Fill in the blanks to make the following statements correct. a. Macroeconomic equilibrium occurs at the intersection of b. If the AS curve is upward sloping, a positive AD shock will cause the price level to c. A positive AS shock will cause the price level to and real GDP to d. The simple multiplier measures the change in real GDP in response to a change in autonomous expenditure when the price level is constant. When the price level varies, the multiplier is than the simple multiplier. e. An increase in autonomous government spending is a upward sloping aggregate supply curve, there will be and determines equilibrium levels of and real GDP to VAD shock, which will initially cause in the price level, which leads to a partial ▼shift of the AE curve and a shift of the AE curve. shift of the AD curve. Given an

Fill in the blanks to make the following statements correct. a. Macroeconomic equilibrium occurs at the intersection of b. If the AS curve is upward sloping, a positive AD shock will cause the price level to c. A positive AS shock will cause the price level to and real GDP to d. The simple multiplier measures the change in real GDP in response to a change in autonomous expenditure when the price level is constant. When the price level varies, the multiplier is than the simple multiplier. e. An increase in autonomous government spending is a upward sloping aggregate supply curve, there will be and determines equilibrium levels of and real GDP to VAD shock, which will initially cause in the price level, which leads to a partial ▼shift of the AE curve and a shift of the AE curve. shift of the AD curve. Given an

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider an AS AD diagram. What would happen in the model if Energy prices increased? Group of answer choices a. AD shifts right and prices increase while real GDP increases b. AS shifts left and prices increase while real GDP decreases c. AS shifts right and prices decrease while real GDP increases d. AD shifts left and prices decreases while real GDP decreases
n the AD-AS model, if there's a sudden increase in consumer confidence leading to more spending, what is the immediate expected impact on the Aggregate Demand (AD) curve? This is a multi answer question. You can select one or more options as the answer. A. The AD curve shifts to the left. B. The AD curve remains unchanged. C. The AD curve shifts to the right. D. The direction of the AD shift is unpredictable
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Fill this two tables ( question b and C)please fill only table
Name 4 causes for the Aggregate Demand (AD) Curve to shift. Why might changes in those variables shift AD?
According to the Keynesian approach, the reduction in government expenditure resulted in A. Aggregate expenditure (AE) decreases, the IS curve shifts to the left and the AD curve shifts to the left. B. AE decreases, the IS curve shifts to the right and the AD curve shifts to the left. C. AE decreases, the IS curve shifts to the left and the AD curve shifts to the right. D. AE increases, the IS curve shifts to the left and the AD curve shifts to the left.
Question 12
Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point W. The price level is Po. Now, suppose there is an exogenous fall in the price level to P2. Which of the following statements describes the likely macroeconomic effects? O A. The AE curve shifts to AE₁, a new equilibrium is established at point V, and the AD curve shifts from AD to AD¹, and equilibrium moves from point B to point D. OB. The AE curve shifts to AE2, a new equilibrium is established at point U, and the AD curve shifts from AD to AD¹, and equilibrium from point B to point D. Ⓒ C. The AE curve shifts to AE2, a new equilibrium is established at point U, and the economy moves from point B to point C along AD. O D. The AE curve shifts to AE₁, new equilibrium is established at point V, and the economy moves from point B to point C along AD⁰. Desired Aggregate Expenditure Price Level 759² Y₁ W Yo Y₂ Real GDP AE=Y AE₂ Real GDP AEo AE₁ Q ✔ Q
Imagine an economy in which the slope of the AD curve is equal to the (negative of) slope of the AS curve. If the simple multiplier is equal to 5, what is the value of the multiplier when the price level varies? Give the number and explain how you figured it out. im really confused with this question especially since my textbook didn't help at all
Answer b is not correct I am again says answer b is not correct
c and d
Price Level 110 100 A с 900 960 AS1 B 1100 AD2 AD1 Real GDP FIGURE 23-5 Refer to Figure 23-5. Suppose that an increase in government purchases by 40 causes the AD curve to shift to the right, as shown. The simple multiplier is and the multiplier is 5; 1.5 4; 1.2 4; 1.5 4; 2.8 5; 1.2