If the long run macro aggregate supply curve is fixed and vertical, then after all is said and done (meaning all adjustments in the aggregate economy have occurred), discretionary fiscal and monetary policies are predicted to change ________________________. a) only the level of real aggregate output/income b) only the price level c) the price level under fiscal but not under monetary policy d) neither the price level nor the level real of aggregate output/income e) both the price level and the level of real aggregate output/income

Q: Look at the photo for prompt Question: Since you took Mr. Inzer’s Honors Economics course, you…

A: Given:Real output = $15 trillionUnemployment rate = 10%If there is full employment, National income…

Q: Why is it so difficult to "fine-tune" the American economy using discretionary macroeconomic policy?…

A: In macroeconomics, the discretionary policy is described as an economic policy that is decided by…

Q: 1. Use of discretionary policy to stabilize the economy Should policymakers use monetary policy,…

A: The AD-AS model demonstrates how changes in aggregate demand and aggregate supply may alter an…

Q: please answer the following question: 1. Expansionary policies are government policies that: A)…

A: "In macro-economics, there are two kinds of policies i.e. fiscal policy and monetary policy and both…

Q: Suppose the economy begins at potential output when the federal government decreases taxes. A.…

A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Q: Examine the following policies and determine which would decrease the level of aggregate demand.…

A: The entire amount of goods and services that all consumers in the economy are demanding is referred…

Q: An increase in taxes would be a good policy   A. when there is stagflation, as this policy would…

A: Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: With respect to the economy depicted in the graph below: a b с Price Level (P) d P₁ Select an answer…

A: The AD-AS framework shows the relationship between price and real output in the short-run as well as…

Q: As you have learned consumer expectationsLinks to an external site. are a major driver of the short…

A: ***Since the student has not provided the external links, hence, the expert is required to solve the…

Q: Which of the following statements about the debate over stabilization policy are correct? Check all…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The graph below depicts an economy where an increase in aggregate demand has caused inflation.…

A: A government generally regulates the market through fiscal measures, the measures can be of two…

Q: where Y is the country's real GDP, P is the price level (GDP deflator), G is government purchases of…

A: (Note: Since 1d and 2 are different only 1d has been solved).     Question 1d: The macroeconomic…

Q: Read the following excerpts. Identify whether the policy action is fiscal or monetary and…

A: Detailed explanation:

Q: how the main instruments of macroeconomic policy, namely monetary and fiscal policy, are implemented…

A: The fiscal policy would result in the policy involved with the taxes, government expenditure and the…

Q: 8. Economic fluctuations 1 The following graph shows the economy in long-run equilibrium at the…

A: Government expenditure is spent on public infrastructure such as health care, education, defense and…

Q: Supply-side fiscal policy targets which of the following? A) Long-run Aggregate Supply B) Short-run…

A: Supply-side fiscal policy states that increasing the supply of goods pushes the economy of the…

Q: a)Which of the following shifts aggregate demand to the right? Group of answer choices Congress…

A: Aggregate demand (AD) is the total demand for goods and services in an economy at a given price…

Q: The government possesses the tools necessary to influence the output level in the short run through…

A: When talking about the role of government in stabilizing the economy, it can be said that government…

Q: POTENTIAL GDP     REAL GDP          PRICE LEVEL 2020  $1500 billion $1500 billion 100 2021  $1590…

A: Potential GDP is the level of GDP when the economy utilizes its resources fully, that is the economy…

Q: Which of the following are arguments in favor of active stabilization policy by the government?…

A: Stabilization policy refers to the strategy that can be implemented by the government of a country…

Q: Match- Identify each item as Expansionary Contractionary Policy Used to stabilize high price levels…

A: Contractionary policy is used to reduce inflation, GDP, employment, price level and used in the…

Q: While the economy is at potential output, the government increases spending. The following table…

A: 1. **Initial Conditions**: Before the increase in government spending, the economy is at potential…

Q: a. Which of the following are considered limitations of fiscal policy? Instructions: In order to…

A: In an economy, when any economic policy is implemented to deal with the market conditions, there are…

Q: effect on Aggregate demand, aggregate supply, price level and real GDP

A: Keynesian model: It refers to the total spending in the economy which leads to the change in output,…

Q: Question 2: Fiscal Policy two different versions of the Aggregate Supply ("AS") curve This chart…

A: The objective of the question is to identify which of the two Aggregate Supply (AS) curves…

Q: Which of the statements is TRUE? O A change in government spending is less effective when a…

A: change in government spending is less effective when our reservation is caused by a real shock

Q: Which of these statements about automatic stabilisers is true? a) They eliminate the fluctuations…

A: An economy is said to be operating free when there is no government that does not intervene in the…

Q: A Keynesian economy is described by the following equations. Consumption                       Cd =…

A: Keynesian economy states that AD(aggregate demand) has the potential to affect both output and…

Q: The CARES Act was the largest in both nominal and real measures of fiscal relief/stimulus passed in…

A: AS is the total quantity of output firms will produce and sell—in other words, the real GDP. ADis…

Q: During the Great Depression, Keynes advocated the use of Multiple Choice O monetary: aggregate…

A: Before the Great depression the classical economic thought believed that markets could take care of…

Q: ? G The following graph shows a hypothetical economy in long-run equilibrium at an expected price…

A: Approach to solving the question: Detailed explanation:In the short run, the increase in government…

Q: Aggregate Supply and Aggregate Demand show the relationship between economic output (GDP) and price…

A: Here is the answer to your question :Explanation:Definitions:Aggregate Demand (AD): It represents…