Describe three types of short-run ... A macroeconomic equilibrium in which real GDP equals potential GDP is equilibrium. And one in which real GDP exceeds potential GDP is equilibrium. O A. a full-employment; a recessionary OB. an above full-employment; an inflationary O C. a full-employment; an above full-employment OD. an above full-employment; a full-employment' The graph shows an economy's long-run aggregate supply curve. The economy is at a below full-employment equilibrium. Draw an aggregate demand curve and a short-run aggregate supply curve. Label them. Draw a point at the short-run equilibrium. 150- 140- 130- 120- Price level (GDP deflator, 2012=100) 110- 100- 90- LAS 1.7 2.3 1.8 2.0 2.1 2.2 1.9 Real GDP (trillions of 2012 dollars) >>> Draw only the objects specified in the questio

Describe three types of short-run ... A macroeconomic equilibrium in which real GDP equals potential GDP is equilibrium. And one in which real GDP exceeds potential GDP is equilibrium. O A. a full-employment; a recessionary OB. an above full-employment; an inflationary O C. a full-employment; an above full-employment OD. an above full-employment; a full-employment' The graph shows an economy's long-run aggregate supply curve. The economy is at a below full-employment equilibrium. Draw an aggregate demand curve and a short-run aggregate supply curve. Label them. Draw a point at the short-run equilibrium. 150- 140- 130- 120- Price level (GDP deflator, 2012=100) 110- 100- 90- LAS 1.7 2.3 1.8 2.0 2.1 2.2 1.9 Real GDP (trillions of 2012 dollars) >>> Draw only the objects specified in the questio

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 2TY

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1Why low rate inflation is considered necessary for economic grwoth? Oa It does not affect the purchasing power of wages Ob. It indicates that the currency is in continuous demand by the people Oc taffects only the rich and not the poor Od itact as an incentive to boost in supply in the economy 2When the economy is in Keynesian macroeconomic equilibrium, planned investment is greater than actual investment. O a False O b. True 3Government fixes the floor and ceiling price which will not allow the producers to increase the price on their wish, this is a type of. O a Physical control called price pegging O b. Monetary policy control measures O. Physical control called price tagging Od. Fiscal policy control measures O e None 4Rising output coupled with falling prices is called stagflation O a. False O b. True 5The Value of marginal propensity to consume lies O a. O to 1 O b. Less than zero Oc -1 to 1 Od. Between O to 1 6The Central Bank way to control inflation is Oa Monetary policy…
Suppose an economy can be represented by the folowing table, in which employment is in millons of workers and GDP and AE are expressed in billions of dollars: Employment 100 Real GDP Aggregate Expenditures 1275 1350 1425 1500 1575 1650 1200 105 1300 1400 1500 1600 1700 110 115 120 125 fut employment is 120 milion workers? What is its what kind of expenditure oap exists size? Suppose government spending, taxes, and net exports ane all independent of the level of rcal GDP. What is the multplier an ths economy? below the econemy's potential, what is the size of the recessionary expenditure qapt
Which of the following will NOT shift the ADTT curve? O a. A rise in consumer confidence O b. A rise in interest rates O c. A rise in government spending O d. A rise in exports
estion The table gives aggregate demand and supply schedules for a hypothetical economy. Amount of Real Output Demanded Price Level (Index Amount oI Real Output Suppiied Value) $ 200 300 $ 500 300 250 450 400 200 400 500 150 300 600 100 200 If the amount of real output demanded at each price level falls by $200, this might have been caused by O A. a decrease in the personal income tax. O B. an increase in net exports. OC.a worsening of business expectations. O D. an increase in consumer wealth.
If output is less than planned aggregate expenditure, there will be Lütfen birini seçin: O A. an unplanned increase in inventories O B. a planned decrease in inventories. O C. no change in inventories O D. a planned increase in inventories O E. an unplanned decrease in inventories
(Figure: Short- and Long-Run Equilibrlum I) Use Figure: Short- and Long-Run Equlibrium . If the economy le short-run maroeconomio wqbrum tE. appropriate polkcy to retum the economy to potential output would be atn): LRAS price l SRAS AD Real GDP potential output Oa decrease in taxes. Ob increase in government spending. Oc increase in transfer payments. Od. decrease in government spending.
Congratulationst You have been appointed an economic policy adviser to the United States, You are told that the economy is significantly abowe futtemplyoment GDP. Based on this inlormation, how can the economy would adjust to reach LR.SR Equilbrium (Classical View)? The economy wilt experience low unemployment rate, pushing wages up, and increasing the pelces of a key input (labor). shatting the sAS to the left (up). The economy will experience high unemployment rate, pushing wages down, and reducing the prices of a key input (labor). shiting the SAS to the right (down). The econoriny wil experience low unemployment rate, decreasing inceme, which will eventually shift the AD to the left. The eooncmy will experience low unemployment rate, pushing wages up, and increasing the prices of a key input (labor), shiting the sAs to the night (down).
omics 1B Jan22 Y1 S2 The sale of South African Airways will affect which component of aggregate demand? O A. Consumption O B. Investment O C. Net Exports O D. Government Spending Previous page a Hi e Other AS W 人 XI
Economics How are aggregate output and the real interest rate determined in compettive egulbum? OA The aggregate oulput can be found by multiplying current employment by current real wage at the intesection of the current labour supply and demand curves, given the raal inderest rate. and ssubtracting the level of investment in the economy OB. Cument aggregata output and the real interest rate are determined by the intersection of the output supoly and demand ouves OC. Cunent aggregate output can be found by finding current employment from the intersection of the current labour supply and domand ourves given the real interest rate and aocounting tor total tactor productivity OD. The real interest rate is determined by the slope of the output supply curve at a given level of aggregate output
What is your prediction for the economy when you observe that inventories are taking an unplanned dive? You predict that there will be OA. an expansion O B. a trough O C. a business cycle O D. a recession
qiven the following aggregeete demand (mD) and Veiggregaté suppry Sns sahedules, ck$ Price level SA) sahedules. Real GDP benan ded Real GDP SUPPPIZED- -Short Ryn 70 80 90 450 400 350 350 400 450 500 100 300 110 250 550 4 potential RGAP is 450 units of us$. a) íf re Aemand Inereases by Us$100. Draw show the new equilibrium Valaues on the Same and graphandfund the new equilisrium. Give possible e this inerease in AD. seplanation for 1alrease in AD. One
Describe three types of short-run macroeconomic equilibrium. A macroeconomic equilibrium in which real GDP equals potential GDP is And one in which real GDP exceeds potential GDP is equilibrium. A. a full-employment; an above full-employment OB. an above full-employment; a full-employment OC. an above full-employment; an inflationary OD. a full-employment; a recessionary equilibrium. The graph shows an economy's long-run aggregate supply curve. The economy is at a below full-employment equilibrium Draw an aggregate demand curve and a short-run aggregate supply curve. Label them. Draw a point at the short-run equilibrium. 150 140- 130- 120- 110- 100 90+ Price level (GDP deflator, 2007=100) 1.5 LAS 2.1 Q Q 1.8 1.9 2.0 1.6 1.7 Real GDP (trillions of 2007 dollars) >>> Draw only the objects specified in the question.