MACROECONOMICS
14th Edition
ISBN: 9781337794985
Author: Baumol
Publisher: CENGAGE L
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- A change in which one of the following factors would shift the aggregate supply curve? Multiple Choice government regulation O profit expectations on investment projects consumer spending personal income taxesarrow_forwardQuestion 28 Macroeconomists would suggest that an economy experiencing high unemployment should adopt policies to O reduce aggregate demand. O increase aggregate demand. O increase aggregate supply. O reduce aggregate supply.arrow_forwardExplain under the following circumstances what will happen to the aggregate demand and/or aggregate supply. a. People have less disposable income on their hand due to an increase in the taxes b. Investors thinks the market soon going to face recession and therefore, expect less returns C. The U.S government limits the number of working visas d. Less foreigners are investing in the U.S in the form of Foreign Direct Investment Make sure to provide reasoning for your response. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial == ווין T {;} P RA KJ X² X₂ 10pt >¶¶< + ABC ¶T ¶¶ Ω Θ Ix X X Q5 88 : A = 旺图 O WORDS POWERED BY TINYarrow_forward
- Please answer correct explain plz asaparrow_forwardThe graph shows an economy at full employment. Show the effect of an increase in the quantity of money. Draw either a new aggregate demand curve labeled AD, or a new aggregate supply curve labeled AS₁. Draw a point at the new macroeconomic equilibrium. To restore full employment, the money wage rate will O A. rise and aggregate supply decreases; rises OB. riseand aggregate demand decreases; falls OC. fall and aggregate demand decreases; falls OD. fall and aggregate supply decreases; rises The price level 140- 130- 120- 110- 100- 90- 80- Price level (GDP price index, 2009=100) Potential GDP 110 ADO 500 ASO 600 700 800 Real GDP (trillions of 2009 dollars) >>> Draw only the objects specified in the question. 900 1000 1100arrow_forwardDetermine whether each of the following would cause a shift in the aggregate demand curve , A shift in the aggregate supply curve, neither, or both. Which curve shifts and which direction? What happens to the aggregate output and the price levels in each case? A the price level changes. Be consumer confidence to clients. See the supply resources increase. D wage rate increases.arrow_forward
- Both aggregate demand and aggregate supply increase by moving to the right. O False Truearrow_forwardWhich of the following would shift the long-run aggregate supply curve to the right?a. a decrease in the rate of inflationb. an increase in the growth rate of spendingc. a severe drought that decreases crop production and as a result raises pricesd. the invention of a new computer chip that makes assembly production twice as fastarrow_forwardExplain the effect, if any, that each of the following occurrencesshould have on the aggregate demand curve.a. The Fed lowers the discount rate.b. The price level decreases.c. The federal government increases federal income tax rates inan effort to reduce the federal deficit.d. Pessimistic firms decrease investment spending.e. The inflation rate falls by 3 percent.f. The federal government increases purchases to stimulatethe economy.arrow_forward
- Which of the following tax policies is most likely to increase investment and long-run aggregate supply? a. a cut in the corporate profit tax b. an increase in the corporate profit tax c. a generous investment tax credit d. a cut in personal income taxesarrow_forwardSomeone answer this question asapA decrease in the expected price level shifts short-run aggregate supply to the A. left, and an increase in the actual price level shifts short run aggregate supply to the left. B. right, and an increase in the actual price level shifts short run aggregate supply to the right. C. right, and an increase in the actual price level does not shift short-run aggregate supply. D. left, and an increase in the actual price level does not shift short-run aggregate supply.arrow_forward3. Explain whether each of the following events will increase, decrease, or have no effect on longrun aggregate supply in your country. a. There is an increase in immigration into your country. b. Your government introduces a minimum wage above the market-clearing wage rate. c. Intel invents a new and more powerful computer chip. d. A severe flood damages factories.arrow_forward
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