Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 29, Problem 5MCQ
To determine
To select:
The option that correctly explains the macroeconomic equilibrium.
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A decrease in business taxes will tend to
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О
Increase aggregate demand but not change aggregate supply.
Increase aggregate supply but not change aggregate demand.
Increase aggregate supply.
decrease aggregate demand.
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Consider that the macroeconomy is hit by aftershocks. Exports decrease by $40 billion and imports increase by $200 billion. Modify your macroeconomic model to reflect both these aftershocks
1. At GDP of 7400: 1. Inventories are in surplus by 80 2. Inventories are in shortage by 80 3. Equilibrium is achieved by the macroeconomy according to the Keynesians 4. Inventories are in surplus by 240
2. At GDP of 8200: Inventories are in surplus by 320, Inventories are in shortage by 320, Equilibrium is achieved by the macroeconomy according to the Keynesians, or Inventories are both in surplus and shortage by 240
3. At GDP of 5000: Inventories are in surplus by 80, Inventories are in shortage by 80, Equilibrium is achieved by the macroeconomy according to the Keynesians, or Inventories are in surplus by 240
4. At GDP of 5800, exports are:
5. At GDP of 9000, imports are:
6. At the new equilibrium GDP, the economy is in:
7. The marginal propensity to consume (MPC) for your…
The figure below depicts the economy of Altrua, which is presently in equilibrium. Enter your responses below rounded to one decimal
place.
AS
AD
LAS
340 360 380 400 420 440 460 480 500 520
Price level
a. The size of its recessionary gap is $
b. The size of this gap as a percentage of its actual GDP is
Chapter 29 Solutions
Foundations of Economics (8th Edition)
Ch. 29 - Prob. 1SPPACh. 29 - Prob. 2SPPACh. 29 - Prob. 3SPPACh. 29 - Prob. 4SPPACh. 29 - Prob. 5SPPACh. 29 - Prob. 6SPPACh. 29 - Prob. 7SPPACh. 29 - Prob. 8SPPACh. 29 - Prob. 9SPPACh. 29 - Prob. 10SPPA
Ch. 29 - Prob. 11SPPACh. 29 - Prob. 1IAPACh. 29 - Prob. 2IAPACh. 29 - Prob. 3IAPACh. 29 - Prob. 4IAPACh. 29 - Prob. 5IAPACh. 29 - Prob. 6IAPACh. 29 - Prob. 7IAPACh. 29 - Prob. 8IAPACh. 29 - Prob. 9IAPACh. 29 - Prob. 10IAPACh. 29 - Prob. 1MCQCh. 29 - Prob. 2MCQCh. 29 - Prob. 3MCQCh. 29 - Prob. 4MCQCh. 29 - Prob. 5MCQCh. 29 - Prob. 6MCQCh. 29 - Prob. 7MCQ
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