QUESTION 1 To determine the price level and aggregate output, the aggregate demand and aggregate supply must be considered separately. be disregarded. be considered as a multiplier. intersect. QUESTION 2 Automatic stabilisers are O variables under the control of private sector decision-makers that push the macroeconomy towards equilibrium. government policies that automatically adjust to smooth the economic cycle. central bank decisions that smooth out the exchange rate. changes in production by firms when inventories vary from their planned level.

QUESTION 1 To determine the price level and aggregate output, the aggregate demand and aggregate supply must be considered separately. be disregarded. be considered as a multiplier. intersect. QUESTION 2 Automatic stabilisers are O variables under the control of private sector decision-makers that push the macroeconomy towards equilibrium. government policies that automatically adjust to smooth the economic cycle. central bank decisions that smooth out the exchange rate. changes in production by firms when inventories vary from their planned level.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter20: Exchange Rates And The Macroeconomy

Section: Chapter Questions

Problem 3TY

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