Money demand is likely to increase the most during which part of the business cycle? OA. peak B. recession C. contraction OD. trough OE. recovery

Initially, demand - pull inflation will OA. increase the price level and increase real GDP. B. shift the aggregate supply curve rightward. C. increase the price level and decrease real GDP. D. increase the price level and not change real GDP.

es Suppose a firm is currently producing 900 computers per week and charging a price of $1,200 per computer. a. Demonstrate how the firm will respond to a negative demand shock. Assume prices are flexible. Instructions: Use the tool provided, 'S Flexible Prices', to draw the supply curve when prices are flexible. Then use the tool provided, 'D Negative Shock', to illustrate the shift in the aggregate demand curve when there is a negative demand shock. Computer Market Price $1,200 900 Computers per week Demand Tools S Flexible Pric D Negative Sh O

Investment tax credits are intended to productivity, shifting the curve to the a. increase; long-run aggregate supply; right O b. increase; long-run aggregate supply; left ○ c. increase; aggregate demand; left O d. decrease; long-run aggregate supply; left

Price Level Long-run AS Y, Y₁ Short-run AS Quantity of Real Output Suppose the economy is operating in a recession such as point B in the graph. If policymakers allow the economy to adjust to the long-run natural level on its own O a people will reduce their price expectations and aggregate demand will shift right O b. people will reduce their price expectations and the short-run aggregate supply will shift right Opeople will raise their price expectations and the short-run aggregate supply will shift left O d. people will raise their price expectations and aggregate demand will shift left

Price Level Juous 17-18. Long-run AS Y₂Y₁ Short-run AS AD Quantity of Real Output Suppose the economy is operating in a recession such as point B in the graph. If policymakers allow the economy to adjust to the long-run natural level on its own, a. people will raise their price expectations and the short-run aggregate supply will shift left b. people will reduce their price expectations and aggregate demand will shift right c. people will raise their price expectations and aggregate demand will shift left d. people will reduce their price expectations and the short-run aggregate supply will shift right

Please give exact answer of question with explanation of correct option and incorrect option and take like

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

Assume that velocity and aggregate output are constant. If the money supply increases from $1.40 trillion to $1.44 trillion: OA. aggregate output will increase by 2.86%. OB. aggregate output will increase by 2.14%. OC. the price level will increase by 2.86%. OD. the price level will increase by 2.14%.

Real Interest Rate R It (a) B (b) G (c) F (d) C (e) D ******** F Figure 8.1 The IS curve ************* 0 A E 18₂ B D ISA 1So Short-Run output Ÿ 18. Consider the IS curve in Figure 8.1. If the interest rate increases and there is a positive aggregate demand shock, the economy will move from point A to point