Exhibit 14A-2 Macro AD-AS Model Price Level CPI 130 120 110 100 90 O 1 1 1 1 1 1 9.0 1 1 9.5 LRAS SRAS AD 10.0 10.5 11.0 11.5 Real GDP (trillions of dollars per year) In Exhibit 14A-2, the intersection of AD with SRAS indicates: O a short-run equilibrium. O a long-run equilibrium. O that the economy needs policies to reduce unemployment. O that the economy is at full employment.

Exhibit 14A-2 Macro AD-AS Model Price Level CPI 130 120 110 100 90 O 1 1 1 1 1 1 9.0 1 1 9.5 LRAS SRAS AD 10.0 10.5 11.0 11.5 Real GDP (trillions of dollars per year) In Exhibit 14A-2, the intersection of AD with SRAS indicates: O a short-run equilibrium. O a long-run equilibrium. O that the economy needs policies to reduce unemployment. O that the economy is at full employment.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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36
these multiple choice Questions from MACROECONOMICS Course.I need the final answer,please.
Question 5 The economy's MPN is given by MPN=100-N0.5 where N is the level of employment. How much is the aggregate labor demand when the real wage is w 20? 120 64,000 O 6400 80 Question 6 The ECON 103 professors have two hundred midterm exams to grade. They offer to hire you to help them grading, paying you twice the amount you would normally receive (because fow students are willing to work during the term), You take the job. This would be an example of the substitution effect being stronger than the income effect. the income effect being stronger than the substitution effect. the substitution effect being equal to the income effect. a pure income effect.
H6
In the figure, as the price level increases the aggregate demand curve will Price level (GDP price index, 2012 = 100) A. not shift. O B. not shift, but the aggregate demand curve will change so that it is positively sloped. O C. shift from AD, to AD, O D. shift from AD, to AD, and then back to AD,. E. shift from AD, to AD3. AD2 AD3 AD1 Real GDP (trillions of 2012 dollars)
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Question 32 If you are told that a country's nominal GDP decreased and its real GDP decreased over the same block of time, which of the following can you conclude with certainty? o The economy had inflation. O None of the choices listed is correct since none can be concluded with certainty. o The economy's price level remained constant. O The economy had disinflation o The economy had deflation. Question 33 Assume the economy of a trading partner enjoys a high rate of growth, interest rates in the economy decrease, and there is an improvement in productivity. Which of the following is correct? o The equilibrium price level will definitely decrease. O The equilibrium price level will definitely increase. o The equilibrium real GDP will definitely decrease. O The equilibrium real GDP will definitely increase.
Potential GDP is O a. a measure of the short term fluctuations in real GDP. O b. another name for nominal GDP. O c. equal to the maximum amount of goods and services that can be produced at any given time. O d. the level of output produced when the economy is fully employed. O e. another name for real GDP.
S4
This graph is for the Canadian economy. Price Level a Select one: O Y₁ Real GDP What could have caused the increase in aggregate demand from AD1 to AD2? AD1 O O AD2 a. A higher Canadian dollar exchange rate. b. A decrease in the number of American tourists in Canada. c. An economic expansion in the United States. d. Less American direct investment in Canada. than those in Canada.
Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household wealth and that investment spending initially rises by $20 billion for every 1 percentage point fall in the real interest rate. Also assume that the economy's multiplier is 4. If household wealth falls by 6 percent because of declining house values, and the real interest rate falls by 2 percentage points, in what direction and by how much will the aggregate demand curve initially shift at each price level? In what direction and by how much will it eventually shift?
ctrl tab shift ↑ caps lock REAM Stream esc Question 3 K →1 Moving to another question will save this response. fn Which of these is among the principal determinants of economic growth? O the financial system stabilization policy the government budget deficit the central bank inflation A Moving to another question will save this response. O Type here to search ? (2 2 N W S f3 # 3 alt x f4 101 LA 4 Ai E R C % LL LO 5 T 6 G f7 hp & Y 7 H fg a V B N CO 19 8