The change in the macroeconomic balance was caused by: Answer Choice Group Increase in discount rate Appreciation of the national currency Decrease in government spending Decrease in discount rate

The following factors explain the downward slope of the aggregate demand curve, except Group of answer choices foreign-purchases (International trade)effect A substitution effect An interest-rate effect A real-balance effect

Y₂ Real GDP d) AD, AD₂ Y, The graph above refers to a significant increase in individual income taxes, taking them to their highest level in 50 years. Which of the following is likely to result? a) cyclical unemployment will decrease b) inflationary pressures will be mild c) the economy will experience lower economic growth macroeconomic supply will decrease in the short run

Based on research conducted by the Department of Economic Analysis, the government and policy advisors of an economy believe that the full employment GDP is $7500 billion, and Pe, the overall expected price level is 118. In addition, the researchers estimate that the short run aggregate supply equation is Y = Ypot + 80 (P - Pe), where Ypot is the potential level of output. In 2016, the population was 400 million, and the structure of the economy was described by the following equations for household consumption behavior and taxes received: C = 100+ 0.8DI, and T = 0.25Y where all monetary values are in billions of dollars. Government spending was fixed at $1700 billion, and firm's investment behavior was fixed at $800 billion. Trading is allowed in this economy and in 2016, trading occurred such that the trade account was balanced. That is, net exports (X - IM) was equal to zero. (Question 1 of 20) What is the equilibrium level of GDP (in billions of dollars) in 2016? (report your…

Long-run macroeconomic equilibrium occurs when the aggregate demand curve the short-run aggregate supply curve, and they the long-run supply curve. A) is flatter than; intersect at a point to the right of B) intersects; intersect at a point to the right of C) is steeper than; intersect at a point to the left of D) intersects; intersect at a point on

Draw the aggregate demand schedule with and without the government sector given the following parameters: C = 200 + 0.6 I = 300 G = 200 t = 0.3

QUESTION 1 To determine the price level and aggregate output, the aggregate demand and aggregate supply must be considered separately. be disregarded. be considered as a multiplier. intersect. QUESTION 2 Automatic stabilisers are variables under the control of private sector decision-makers that push the macroeconomy towards equilibrium. government policies that automatically adjust to smooth the economic cycle. central bank decisions that smooth out the exchange rate. changes in production by firms when inventories vary from their planned level.

The use of money and credit controls to influence macroeconomic activity is:   A) monetary policy   B) fiscal policy   C) supply-side policy   D) classical policy

The Keynesian cross model is derived assuming that the interest rate is constant. True or False

Which characteristics are associated with the Keynesian theory? Choose all that apply. Group of answer choices Flexible prices Long-run view Long-run aggregate supply primarily affects economic growth (real GDP) Short run view Aggregate demand primarily affects economic growth (real GDP) Inflexible prices