3. Consider the aggregate expenditure equation AE = 2,000 - 1,000+ 0.7 Y, where the letters represent the usual economic variables. Which of the following is correct? 1. (2,000 - 1,000r) constitute the autonomous components of aggregate expenditure. 2. The sign of the coefficient on the interest rate ris wrong, because aggregate expenditure rises with the interest rate. 3. The equation indicates that a change in the interest rate r shifts the aggregate expenditure line in the Keynesian Cross diagram.

3. Consider the aggregate expenditure equation AE = 2,000 - 1,000+ 0.7 Y, where the letters represent the usual economic variables. Which of the following is correct? 1. (2,000 - 1,000r) constitute the autonomous components of aggregate expenditure. 2. The sign of the coefficient on the interest rate ris wrong, because aggregate expenditure rises with the interest rate. 3. The equation indicates that a change in the interest rate r shifts the aggregate expenditure line in the Keynesian Cross diagram.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Does a nudge force people to make a better choice?
You need some garbage bags for your house and decide to stop by one of the local Dollar Generals (DG). You are faced with two alternatives that make sense to you. The first option is a box of 38 bags and the price is $7.00. The second option is a box of 17 bags at a cost of $5.00. What is the better choice?
Investment goals are based on your plans for the past. True or false
Answer this question
James has two young children (Finn and lain) who are visiting the doctor for their annual well-child check-ups. The doctor's office charges $105 for well-child appointments. Health insurance pays 100% of the costs associated with well-child visits and does not require a copayment. James' health plan monthly premium is $1,400 and has a $1,000 deductible. How much will James be charged when the appointment is done?
Explain traditional or behavioral economic beliefs
Your friend bought two tickets to see James Taylor play at the Save-On Center, but now her partner can’t make it. You knew about the concert, but you decided you’re not a big enough fan to pay $100 for a ticket. On the other hand, she would have bought tickets even if they cost $150 each. If you assume that she cannot sell the ticket anywhere else, what is the minimum price you can offer her for the ticket that she will accept? Explain your answer.
You want to travel to Las Vegas to celebrate spring break and your "A" in your microeconomics class! You are trying to figure out if you should drive or fly. A round trip airline ticket from Riverside to Las Vegas costs $350 and flying there and back takes about 5 hours. Driving roundtrip to Las Vegas costs about $50 in gas and takes about 10 hours. Other things constant, what is the minimum amount of money that you would have to expect to make by gambling in Las Vegas to induce you as a rational individual to fly rather than drive? O $10 an hour $60 an hour O $70 an hour O $300 an hour
Price elasticity measures the responsiveness of the quantity demanded or supplied to a good to a change in its price. Note: Select an option True False er than the Save Answer button will NOT save any changes to your answers!
Healthcare fraud and abuse account for millions of dollars in unnecessary expenses. Research a current (3 years old or less) journal article or news story regarding medical coding or healthcare fraud and abuse (as an alternative you may choose to research an article on ways Medicare acts to combat healthcare fraud and abuse).
the impact of education in crime
Put yourself in the shoes of the Egyptian Government. The country is already suffering from severe water shortages. In the future, the number of people needing water is going up drastically and the amount of water available will decrease once the dam in Ethiopia is finished. What actions does the government have available? Come up with three options. Discuss the cost/benefits or pros/cons of each option. Evaluate the options and determine which one would be the best for the people of Egypt and their security.