Suppose an Increase in aggregate demand shifts the economy from equilibrium to P₁ and Y₁.Price LevelLRASP₁#XPtADYo Y₁Real GDPa. Which of the following events would likely cause the Increase in aggregate demand?Exports decrease due to reduced foreign incomes.Personal consumption falls as workers become concerned with future employment prospects.Gross Investment increases as capital units become fully utilized.ASb. An increase in aggregate demand is of policy concern due to the Increase in theunemployment rate.price level.O productivity of workersc. Which policy action should the federal government enact?O Increase government spending on Infrastructureincrease personal income tax ratesO decrease real Interest ratesd. The size of the policy acuon should result in an intersection of AD and AS that isgreater than output YO less than output YOoqual to output Y

GDP is the gross domestic product. GDP is the money value of all the goods and services produced in…

Suppose an Increase in aggregate demand shifts the economy from equilibrium to P₁ and Y₁. LRAS P₁ pe E AD Price Level Yo Y₁ Real GDP AS a. Which of the following events would likely cause the increase in aggregate demand? O Exports decrease due to reduced foreign Incomes. O Personal consumption falls as workers become concerned with future employment prospects. O Gross Investment increases as capital units become fully utilized. b. An Increase in aggregate demand is of policy concern due to the increase in the O unemployment rate. O price level. O productivity of workers c. Which policy action should the federal government enact? O Increase government spending on infrastructure O Increase personal Income tax rates O decrease real Interest rates

Suppose an Increase in aggregate demand shifts the economy from equilibrium to P₁ and Y₁. LRAS P₁ pe E AD Price Level Yo Y₁ Real GDP AS a. Which of the following events would likely cause the increase in aggregate demand? O Exports decrease due to reduced foreign Incomes. O Personal consumption falls as workers become concerned with future employment prospects. O Gross Investment increases as capital units become fully utilized. b. An Increase in aggregate demand is of policy concern due to the increase in the O unemployment rate. O price level. O productivity of workers c. Which policy action should the federal government enact? O Increase government spending on infrastructure O Increase personal Income tax rates O decrease real Interest rates

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Other things being equal, what would happen to aggregate demand if the federal government decreased military purchases and state and local governments increased their road building budgets at the same time? O aggregate demand (AD) would increase, because only federal government purchases affect AD. aggregate demand (AD) would decrease, because only state and local government purchases affect AD. aggregate demand (AD) would increase if the change in federal purchases were smaller than the change in state and local purchases. O aggregate demand (AD) would decrease if the change in federal purchases was smaller than the change in state and local purchases.
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start from a to c please
Question Completion Status: ↳ A Moving to another question will save this response. Question 29 If the government decided to go to war on Russia, how would that impact the aggregate model? O a. This would not impact the aggregate model at all. O b. This would increase the price level which would shift the aggregate demand curve downwards. O c. It might shift the aggregate demand curve upward or to the right, and maybe shift the LRAS to the left. O d. It would shift the LRAS to the right. A Moving to another question will save this response. 1 2 # 3 4
PRICE LEVEL Point Q Point S. Point O. a Point P. LRAS R 20 S O AD₁ QUANTITY OF OUTPUT Suppose the economy starts at Point R. If there is a reduction in tax on investment, then in the short run the economy moves to AD₂ AD SRAS
Use the following graph to answer the next question. Price Level 0 AS3 AS₁ AS₂ Real Domestic Output, GDP Which of the following factors will shift AS1 to AS2? O An increase in real interest rates O A decrease in business subsidies O An increase in input prices O A decrease in business taxes.
Price level LRAS AS1 Figure 12.8 C B A ASO AS₂ AD₁ ADO E Y2 Yo Y₁ Aggregate output ($ billion) AD₂ Refer to Figure 12.8. This economy cannot continue to produce Y₁ (or at point B) because O the price of raw material will increase, shifting the aggregate demand curve to AD2. O all of the above O the price of raw material and wages will increase shifting the aggregate supply curve to AS₁. O the price of inputs will decrease, shifting the aggregate supply curve to AS2.
tion 6 According to aggregate supply and aggregate demand analysis, what happens to P (price level) and Q (GDP) if X increases? Oa. Prices decrease and GDP decreases. O b. Prices increase and GDP decreases. Oc Prices stay the same and so does GDP i AS and AD curves shift by the same amount O d. Prices increase and GDP increases. estion will save this response.
When the macroeconomic equilibrium is such that real GDP is less than potential real GDP, the economy is suffering from and the government policy to eliminate this gap will the price level. real GDP and to A. an inflationary gap; increase; decrease a recessionary gap; decrease; decrease OC. a recessionary gap; decrease; increase B. D. an inflationary gap; decrease; increase OE. a recessionary gap; increase; increase
Question 11 An increase in wealth from a substantial increase in stock prices will move the economy along a fixed aggregate demand curve. O A. true. O B. false.
Which of the following will NOT shift the ADT curve? O a. A rise in government spending O b. A rise in exports Ос. A rise in interest rates O d. A rise in consumer confidence
Assume the economy has positively sloped AS curve. A leftward shift of the AD curve will result in O A. a decrease in prices and no change in real GDP.OB. an increase in both real GDP and prices.O C.a decrease in both real GDP and pricesO D.an increase in prices and no change in real GDPO E.an increase in real GDP and no change in prices.OF. a decrease in real GDP and no change in prices.