MACROECONOMICS FOR TODAY
10th Edition
ISBN: 9781337613057
Author: Tucker
Publisher: CENGAGE L
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Question
Chapter 17, Problem 14SQ
To determine
The impact of expansionary
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Consumer expectations about future income have become negative. How will this affect aggregate demand and equilibrium in the short run?
A.
Aggregate demand will fall, the equilibrium price level will fall, and the equilibrium level of GDP will fall.
B.
Aggregate demand will not change because consumer expectations are not a determinant of aggregate demand.
C.
Aggregate demand will fall, the equilibrium price level will rise, and the equilibrium level of GDP will fall.
D.
Aggregate demand will rise, the equilibrium price level will rise, and the equilibrium level of GDP will rise.
E.
Aggregate demand will rise, the equilibrium price level will fall, and the equilibrium level of GDP will rise.
QUESTION 12
When aggregate supply shifts to the left, the equilibrium price level _____________ and the unemployment rate ______________ in the short run.
A.
falls; rises
B.
falls; falls
C.
falls; remains constant…
Assume that the housing market is in equilibrium in year 1. In year 2, the mortgage rate that banks charge consumers decreases, but producers are not affected.
Which of the following is most likely to be the equilibrium change?
Price
Quantity
O The equilibrium will be at point A before the change in expectations and point B after the change
O The equilibrium will be at point E before the change in expectations and point C after the change
O The equilibrium will be at point A before the change in expectations and point C after the change
O The equilibrium will be at point C before the change in expectations and point A after the change
During the pandemic of 2020, stimulus checks were sent to qualifying individuals. Some people chose to save their money, rather than spend it. This led to A,B,C, OR D ONE ANSWER
a
a smaller rightward shift in the aggregate demand (AD) than expected.
b
a larger rightward shift in the aggregate demand (AD) than expected.
c
a desire to increase consumption.
d
a smaller leftward shift in the aggregate demand (AD) than expected.
Chapter 17 Solutions
MACROECONOMICS FOR TODAY
Ch. 17.3 - Prob. 1YTECh. 17.6 - Prob. 1YTECh. 17 - Prob. 1SQPCh. 17 - Prob. 2SQPCh. 17 - Prob. 3SQPCh. 17 - Prob. 4SQPCh. 17 - Prob. 5SQPCh. 17 - Prob. 6SQPCh. 17 - Prob. 7SQPCh. 17 - Prob. 8SQP
Ch. 17 - Prob. 9SQPCh. 17 - Prob. 1SQCh. 17 - Prob. 2SQCh. 17 - Prob. 3SQCh. 17 - Prob. 4SQCh. 17 - Prob. 5SQCh. 17 - Prob. 6SQCh. 17 - Prob. 7SQCh. 17 - Prob. 8SQCh. 17 - Prob. 9SQCh. 17 - Prob. 10SQCh. 17 - Prob. 11SQCh. 17 - Prob. 12SQCh. 17 - Prob. 13SQCh. 17 - Prob. 14SQCh. 17 - Prob. 15SQCh. 17 - Prob. 16SQCh. 17 - Prob. 17SQCh. 17 - Prob. 18SQCh. 17 - Prob. 19SQCh. 17 - Prob. 20SQ
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