Long run macroeconomic equilibrium is when a. AD = LAS. b. SAS = LAS. C. AD = SAS = LAS. d. AD = SAS. Which of the following is an example of the redistribution role of government? a. The introduction of savings schemes such as KiwiSaver. b. Superannuation payments (an old age pension). c. The use of monetary policy to control inflation. d. The allocation of tradable pollution emission rights.

41) Which of the following is a tool for achieving macroeconomic objectives? A) Fiscal policy B) Monetary policy C) Incomes policy D) All of the above 42) Macroeconomics is useful: A) only to governments B) only to business firms seeking to maximize their profits C) only to households seeking employment D) to all economic decision-making units 43) Consider a circular flow model with households, firms, and government. Which of the following is true? A) Households sell labour services and other resources to firms B) Households purchase resources from firms and convert them into goods and services C) The government does not purchase anything from households D) Households receive income from firms but not from the government 44) Payments such as employment insurance and welfare are called: A) employment income B) transfer payments C) compensation income D) business income 45) When households purchase government bonds, they: A) lend to the…

If the government increases taxes, what happens to the price index and the actual real GDP holding all else constant? Group of answer choices In this case, the price index decreases and the actual real GDP decreases. In this case, the price index increases and the actual real GDP decreases. In this case, the price index increases and the actual real GDP increases. In this case, the price index decreases and the actual real GDP increases.

Determine whether the government SHOULD APPLY an expansionary or a contractionary policy.There is a low level of confidence by the population in a country's economy. *a. Expansionary policyb. Contractionary policyc. NeitherGeneral prices of goods are increasing in an exponential rate. *a. Expansionary policyb. Contractionary policyc. NeitherUnemployment rate is 5%. This is an acceptable rate according to the government. *a. Expansionary policyb. Contractionary policyc. Neither