True / False questions with EXPLAINATION 1) In AD-AS model , if the government reduces tax on households income , the price and total output will both increase in long run 2 Keynesian cross model , if total output is on the right of the crossing point of AE and 45 ° line , it implies an equilibrium in goods market 3. If domestic currency is appreciated in value , the Central Bank should sell foreign currency in the fixed exchange rate system 4. In AD-AS model , the improvement in technology will shift both ASSR and AD curves to the left . P
True / False questions with EXPLAINATION 1) In AD-AS model , if the government reduces tax on households income , the price and total output will both increase in long run 2 Keynesian cross model , if total output is on the right of the crossing point of AE and 45 ° line , it implies an equilibrium in goods market 3. If domestic currency is appreciated in value , the Central Bank should sell foreign currency in the fixed exchange rate system 4. In AD-AS model , the improvement in technology will shift both ASSR and AD curves to the left . P
Chapter26: Monetary Policy
Section: Chapter Questions
Problem 3P
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True / False questions with EXPLAINATION
1) In AD-AS model , if the government reduces tax on households income , the price and total output will both increase in long run
2 Keynesian cross model , if total output is on the right of the crossing point of AE and 45 ° line , it implies an equilibrium in goods market 3. If domestic currency is appreciated in value , the Central Bank should sell foreign currency in the fixed exchange rate system
4. In AD-AS model , the improvement in technology will shift both ASSR and AD curves to the left .
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