9
answers
0
watching
40
views
10 Nov 2019
6. Suppose the economy is initially in long run equilibrium Then suppose there is a drought that destroys much of the wheat crop if policymakers allow the economy to adjust to long-run equilibrium on its own, according to the model to aggregate demand and aggregate supply what happens to prices and output in the long run A) Output rises; prices are unchanged from the initial value B) Output and the price level are unchanged from their initial values C) Output falls; prices are unchanged from the initial value D) Prices fall; output is unchanged from its initial value 7. Which of the following would decrease aggregate demand? A) Increased consumption B) Increasing export revenue C) Increased taxation revenue D) Increased investment 8. A shift in aggregate supply is likely to: A) Reduce the general price level and reduce national income B) Reduce the general price level and increase national income C) Increase the general price level and reduce national income D) Increase the general price level and increase national income 9. According to the wealth effect aggregate demand slopes downward (negatively) A) lower prices increase the value of money holding and consumers spending B) lower prices decrease the value of money holding and consumers spending C) lower prices reduce money holding increase lending, interest rates fall and D) lower prices increase money holding decrease lending, interest rates rise and because increase decrease investment spending increase investment spending falls
6. Suppose the economy is initially in long run equilibrium Then suppose there is a drought that destroys much of the wheat crop if policymakers allow the economy to adjust to long-run equilibrium on its own, according to the model to aggregate demand and aggregate supply what happens to prices and output in the long run A) Output rises; prices are unchanged from the initial value B) Output and the price level are unchanged from their initial values C) Output falls; prices are unchanged from the initial value D) Prices fall; output is unchanged from its initial value 7. Which of the following would decrease aggregate demand? A) Increased consumption B) Increasing export revenue C) Increased taxation revenue D) Increased investment 8. A shift in aggregate supply is likely to: A) Reduce the general price level and reduce national income B) Reduce the general price level and increase national income C) Increase the general price level and reduce national income D) Increase the general price level and increase national income 9. According to the wealth effect aggregate demand slopes downward (negatively) A) lower prices increase the value of money holding and consumers spending B) lower prices decrease the value of money holding and consumers spending C) lower prices reduce money holding increase lending, interest rates fall and D) lower prices increase money holding decrease lending, interest rates rise and because increase decrease investment spending increase investment spending falls
devsingh077Lv10
22 Aug 2023
Unlock all answers
Get 1 free homework help answer.
Already have an account? Log in
rosemarvins12Lv10
6 Aug 2023
Get unlimited access
Already have an account? Log in
samvicLv10
29 Jul 2023
Get unlimited access
Already have an account? Log in
claralillia1Lv10
23 Jul 2023
Get unlimited access
Already have an account? Log in
evereadyLv10
8 Jul 2023
Get unlimited access
Already have an account? Log in
OC4396189Lv10
4 Jul 2023
Get unlimited access
Already have an account? Log in
malupiton2022Lv10
12 Oct 2022
Get unlimited access
Already have an account? Log in
mainLv10
24 Sep 2022
Get unlimited access
Already have an account? Log in
Nestor RutherfordLv2
17 Jun 2019
Get unlimited access
Already have an account? Log in