Principles of Macroeconomics 2e
2nd Edition
ISBN: 9781947172388
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 12, Problem 10RQ
From a Keynesian point of view, which is more likely to cause a recession: aggregate
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20. Factors 01 pro
B. the technological innovations available to companies.
A. the laws that regulate manufacturers.
C. the resources used to create output
D. the waste left over after goods are produced.
21. Table 1.1 shows the tradeoff between different combinations of missile production and home
construction, ceteris paribus. Complete the table by calculating the required opportunity costs for both
missiles and houses. Then answer the indicated question(s).
Combination
Number of
houses
Opportunity cost
of houses in
Number of
missiles
terms of missiles
J
0
4
K
10,000
3
L
17,000
2
1
M
21,000
0
N
23,000
Opportunity cost
of missiles in
terms of houses
Tutorials-Principles of Economics
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Chapter 12 Solutions
Principles of Macroeconomics 2e
Ch. 12 - In the Keynesian framework, which of the following...Ch. 12 - In a Keynesian framework, using an AD/AS diagram,...Ch. 12 - Use the AD/AS model to explain bow an inflationary...Ch. 12 - Suppose the U.S. Congress cuts federal government...Ch. 12 - How would a decrease in energy prices affect the...Ch. 12 - Does Keynesian economics require government to set...Ch. 12 - List three practical problems with the Keynesian...Ch. 12 - Name some economic events not related to...Ch. 12 - Name some government policies that cod cause...Ch. 12 - From a Keynesian point of view, which is more...
Ch. 12 - Why do sticky wages and prices increase the impact...Ch. 12 - Explain what economists mean by menu costs.Ch. 12 - What tradeoff does a Phillips curve show?Ch. 12 - Would you expect to see long-run data trace out a...Ch. 12 - What is the Keynesian prescription for recession?...Ch. 12 - How did the Keynesian perspective address the...Ch. 12 - In its recent report, The Conference Boards Global...Ch. 12 - What may happen if growth in China continues or...Ch. 12 - Does it make sense that wages would be sticky...Ch. 12 - Suppose the economy is operating at potential GDP...Ch. 12 - Do you think the Phillips curve is a useful tool...Ch. 12 - Return to the table from the Economic Report of...Ch. 12 - Explain what types of policies the federal...
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- In a small open economy with a floating exchange rate, the supply of real money balances is fixed and a rise in government spending ______ Group of answer choices Raises the interest rate so that net exports must fall to maintain equilibrium in the goods market. Cannot change the interest rate so that net exports must fall to maintain equilibrium in the goods market. Cannot change the interest rate so income must rise to maintain equilibrium in the money market Raises the interest rate, so that income must rise to maintain equilibrium in the money market.arrow_forwardSuppose a country with a fixed exchange rate decides to implement a devaluation of its currency and commits to maintaining the new fixed parity. This implies (A) ______________ in the demand for its goods and a monetary (B) _______________. Group of answer choices (A) expansion ; (B) contraction (A) contraction ; (B) expansion (A) expansion ; (B) expansion (A) contraction ; (B) contractionarrow_forwardAssume a small open country under fixed exchanges rate and full capital mobility. Prices are fixed in the short run and equilibrium is given initially at point A. An exogenous increase in public spending shifts the IS curve to IS'. Which of the following statements is true? Group of answer choices A new equilibrium is reached at point B. The TR curve will shift down until it passes through point B. A new equilibrium is reached at point C. Point B can only be reached in the absence of capital mobility.arrow_forward
- A decrease in money demand causes the real interest rate to _____ and output to _____ in the short run, before prices adjust to restore equilibrium. Group of answer choices rise; rise fall; fall fall; rise rise; fallarrow_forwardIf a country's policy makers were to continously use expansionary monetary policy in an attempt to hold unemployment below the natural rate , the long urn result would be? Group of answer choices a decrease in the unemployment rate an increase in the level of output All of these an increase in the rate of inflationarrow_forwardA shift in the Aggregate Supply curve to the right will result in a move to a point that is southwest of where the economy is currently at. Group of answer choices True Falsearrow_forward
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