Suppose the current price level in the economy is 150 and real GDP is$5t. Net exports fall by$1t. What must be true? A the price level is now more than 150 B SRAS shifts to the left (C) the price level is now less than 150 (D) SRAS shifts to the right

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Suppose the current price level in the economy is 150 and real GDP is$5t. Net exports fall by$1t. What must be true? A the price level is now more than 150

B SRAS shifts to the left

(C) the price level is now less than 150

(D) SRAS shifts to the right

Which of the following will shift the AD curve to the left?
A increase in imports (IM)
B
increase in disposable income
decrease in taxes
increase in investment (1)
You reached the end of the assessment and still have unanswered questions. Do you want to review them before submitting?
Transcribed Image Text:Which of the following will shift the AD curve to the left? A increase in imports (IM) B increase in disposable income decrease in taxes increase in investment (1) You reached the end of the assessment and still have unanswered questions. Do you want to review them before submitting?
Why does crowding out occur?
A taxes decrease by the same amount as government expenditures (G) increase
B
D
interest rates fall and private investment (1) increases
individuals increase their consumption of private goods (C) by the same amount as government expenditures (G)
increase
interest rates rise and private investment (1) decreases
Transcribed Image Text:Why does crowding out occur? A taxes decrease by the same amount as government expenditures (G) increase B D interest rates fall and private investment (1) increases individuals increase their consumption of private goods (C) by the same amount as government expenditures (G) increase interest rates rise and private investment (1) decreases
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