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.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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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
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.
Transcribed Image Text: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 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.
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