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

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A: "Since you have asked multiple questions, we will answer only first question for you. If you have…

Q: Please use the AD-AS model to analyze the effects of monetary policy and fiscal policy on economic…

A: The actions by the monetary authorities/government to either expand or tighten the economy and its…

Q: Hey how are you There are the three reasons why aggregate demand is downward slope; real wealth…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: 1. Macroland is recognized as a high-income economy by the World Bank. The country of Macroland is…

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Q: Which is not a dynamic of IS-LM Model • it takes some time an output to adjust to the new fiscal…

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Q: uppose a change in exchange rates causes aggregate demand to increase. Which of the following is NOT…

A: GDP refers to the total monetary value of all final goods and services that a nation produces in its…

Q: a. Give an analysis accompanied by a picture of what will happen to the interest rate and Y balance…

A: The expansionary fiscal policies will raise the AD in the economy by lowering the taxes and rising…

Q: The figure to the right shows an economy in an initial long-run equilibrium at point A. LRAS, a.…

A: Demand refers the total amount of goods and services that are willing and able to buy at the…

Q: Suppose that the position of a nation's long-run aggregate supply (LRAS) curve has not changed, but…

A: LRAS remaining constant,price level would decrease if aggregate demand decreases. Following factors…

Q: True / False questions with EXPLAINATION. 1. In AD - AS model , if the government increases tax on…

A: 1) If the government increases the tax rates in the AD-AS model, the income after tax in peoples'…

Q: The figure to the right shows an economy in an initial long-run equilibrium at point A. LRAS, a.…

A: The effects of decrease in the value of home currency in the long run are explained below along with…

Q: Multiple choice question and give a short explination about your answer: In the Mundell-Fleming…

A: Mundell Fleming's basic model, like the ISLM model, is based on the idea of ​​fixed price index and…

Q: Consider the relationship between exchange-rate changes, aggregate demand, and monetary policy. a.…

A: Aggregate demand shows how much output is demanded by consumers, businesses, government, and foreign…

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A: Automatic adjustment mechanisms (AAMs)— decides guaranteeing that specific attributes of a benefits…

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Q: In 2007 and 2008, Canada was affected by the global financial crisis that had begun with the U.S.…

A: Aggregate Demand represents the total amount of goods and services that households, businesses, the…

Q: 18. Use the AD/AS model to illustrate the following. Draw 6 graphs by hand. Show how the AD or the…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: According to the Keynesian model, which answer might cause a recession but wouldn't cause inflation…

A: The Keynesian economic model provides a framework for comprehending how economies work in the short…

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Q: Question 1. In the AD-AS model with an upward-sloping AS curve, a decrease in oil prices will: A.…

A: Answer in step 2 Note please post second part separately thankyou ?

Q: Scenario FRQ In 2019 the federal government decreased interest rates for banks three times. Shortly…

A: A. Decline in interest rates mean less towards savings and more towards consumption spending. Hence,…

Q: The figure to the right shows an economy in an initial long-run equilibrium at point A LRAS, a.…

A: Answer: Introduction: Due to a decrease in the value of the home currency in terms of the currency…