MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Question
Chapter 16.A, Problem 3SQ
To determine
The cassical prediction of the economy during the recessionary gap.
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Students have asked these similar questions
Which of the following shifts aggregate supply to the right?
a.
a decline in the price of imported natural resources
b.
a technological advance
c.
an older labor force that leaves jobs less frequently
d.
All of the above are correct.
What three factors affect long-run aggregate supply?
A. Natural Resources, Technology, and unemployment
B. Resources, technology, and institutions
C. Interest rates, inflation, and the quantity of money
D. None of the above
The idea that higher prices reduce the purchasing power of financial assets and lead to less consumption and more saving is known as the
A. Foreign purchases effect.
B. Income effect.
C. Aggregate demand effect.
D. Real balances effect.
Chapter 16 Solutions
MACROECONOMICS FOR TODAY
Ch. 16.3 - Prob. 1.1YTECh. 16.3 - Prob. 2.1YTECh. 16.3 - Prob. 2.2YTECh. 16.A - Prob. 1SQPCh. 16.A - Prob. 2SQPCh. 16.A - Prob. 3SQPCh. 16.A - Prob. 4SQPCh. 16.A - Prob. 1SQCh. 16.A - Prob. 2SQCh. 16.A - Prob. 3SQ
Ch. 16.A - Prob. 4SQCh. 16.A - Prob. 5SQCh. 16.A - Prob. 6SQCh. 16.A - Prob. 7SQCh. 16.A - Prob. 8SQCh. 16.A - Prob. 9SQCh. 16.A - Prob. 10SQCh. 16.A - Prob. 11SQCh. 16.A - Prob. 12SQCh. 16.A - Prob. 13SQCh. 16.A - Prob. 14SQCh. 16.A - Prob. 15SQCh. 16 - Prob. 1SQPCh. 16 - Prob. 2SQPCh. 16 - Prob. 3SQPCh. 16 - Prob. 4SQPCh. 16 - Prob. 5SQPCh. 16 - Prob. 6SQPCh. 16 - Prob. 7SQPCh. 16 - Prob. 8SQPCh. 16 - Prob. 9SQPCh. 16 - Prob. 10SQPCh. 16 - Prob. 11SQPCh. 16 - Prob. 12SQPCh. 16 - Prob. 1SQCh. 16 - Prob. 2SQCh. 16 - Prob. 3SQCh. 16 - Prob. 4SQCh. 16 - Prob. 5SQCh. 16 - Prob. 6SQCh. 16 - Prob. 7SQCh. 16 - Prob. 8SQCh. 16 - Prob. 9SQCh. 16 - Prob. 10SQCh. 16 - Prob. 11SQCh. 16 - Prob. 12SQCh. 16 - Prob. 13SQCh. 16 - Prob. 14SQCh. 16 - Prob. 15SQCh. 16 - Prob. 16SQCh. 16 - Prob. 17SQCh. 16 - Prob. 18SQCh. 16 - Prob. 19SQCh. 16 - Prob. 20SQ
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Similar questions
- Which of the following events is considered to shift the long-run aggregate supply in classical view? Answers: A. No tornados in summer B. Tsunami C. Huge foreign capital investment D. Category-5 hurricanearrow_forwardRefer to the figure at right. If the economy is currently operating at point C, then there is A. unemployment. B. a recessionary gap. C. deflation. D. an inflationary gap.arrow_forwardWhat are the important mechanisms that reverse the effects of a recession in a modern economy? (Check all that apply.) A. Labor supply increases due to an increase in real wages. B. The multipliers on wages and employment return to normal. C. Labor demand increases due to expansionary government policies. D. Labor demand increases due to market forces. What market forces might cause the labor demand curve to shift back to the right? (Check all that apply.) A. Technological advances encourage firms to expand their activities. B. The banking system recuperates and businesses are again able to use credit to finance their activities. C. Excess inventory has been sold off. D. Wage rigidity decreases.arrow_forward
- Which of the following leads to a rightward shift in the aggregate demand? a. General price level fall b. Rise in government spending c. General price level rise d. Fall in government spendingarrow_forwardWhich one of the following variables is not held constant along a given aggregate demand curve? Select one: A. fiscal policy B. monetary policy C. expectations about inflation D. the price level O E. the exchange ratearrow_forwardMexico is experiencing a collapse in business investment, rising unemployment, and falling consumer spending. Business and consumer confidence are low. a. Sketch a graph and explain the state of Mexico’s economy. b. Illustrate how business and consumer confidence influence aggregate supply and aggregate demand.arrow_forward
- Which of the following would lead to a shift of the long-run aggregate supply? a. increased capital stock (more factories, technology, etc) b. increased labor force & employment c. more natural resources such as petroleum, natural gas, etc. d. all of the above would shift the LRAS to the Right.arrow_forwardIf the economy is self-regulating as Classical theory assumes,and it is in a recessionary gap, then how will it get back to full employment? Select one: a. wages and prices will rise. b. wages will rise, but prices will fall. C. wages and prices will fall d. wages will fall, but prices will rise. e neither wages nor prices wil change.arrow_forwardThe aggregate demand curve for an economy slopes downward because a decrease in the price level will: A.increase the demand for money. B.put an upward pressure on interest rates. C.increase the purchasing power of money. D.make domestically produced goods more expensive relative to foreign goods.arrow_forward
- According to the views of the Classical economists, if the money supply doubles, A. money prices will be halved B. real income will double. C. level of investment will double. D.There will be no effect on relative prices.arrow_forwardThe aggregate supply curve shows the relationship between real GDP and the average price level. a. True. b. False.arrow_forwardWhat is the relationship between the price level and the following components of aggregate demand? a. There is (a negative/ no / a positive) relationship between the price level and consumption. b. There is (a negative/no/ a positive) relationship between the price level and investment. c. There is (a negative/no/ a positive) relationship between the price level and government spending. d. There is (a negative/no/ a positive) relationship between the price level and net exports.arrow_forward
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