A change in the price level will cause a shift in the expenditure schedule.  True or  False

Q: Suppose firms are optimistic about the outlook of the economy and they decide to increase…

A: The equilibrium is established where the aggregate demand and aggregate supply are equal.  The…

Q: and Planning -   Which of the following is an example of a macro forecast intelligence? Change in…

A: Economics as a subject is used to study and plan the allocation of scarce resources among humans.…

Q: Y = C + I even when the economy is not in equilibrium.  t or f

A: An economy is said to be a closed economy if it does not trade with other countries. In such an…

Q: Which of the following will not tend to shift the consumption schedule upward? Select one: a. A…

A: The consumption function shows the functional relationship between the consumption in an economy by…

Q: Please  explain and discuss supply-side economics.

A: Supply-Side Economics helps in increasing aggregate supply (AS). supply-side also helps in creasing…

Q: Which of the following would not increase Aggregate Demand? a. Increased Consumption b. Increased…

A: Aggregate demand is given by  AD= C+I+G+NX Where C is consumption I is investment G is government…

Q: Calculate the change in aggregate output (to one decimal place) if the marginal propensity to…

A: Here, marginal propensity to consume is given as 0.38, according to the which one can identify the…

Q: Y=C t /even when the economy is not in equilibrium

A:

Q: How to calculate marginal propensity to consume

A: The marginal propensity to Consume is the metric that quantifies the induced consumption of the…

Q: Question attahed in image

A: A decrease in the price level of a particular commodity means that the consumers are now able to…

Q: Describe the possible effects of falling prices on equilibrium income?

A: Equilibrium income is reached when the economy comes with an equal amount of production and market…

Q: At any given amount of income, an increase in consumption will result in a. A rise in total demand…

A: Consumer use their income in two ways: 1. On consumption of goods and services, 2. On saving for…

Q: True or False (Why?): An increased price level reduces the quantities of investment goods and…

A:

Q: A decrease in government spending will decrease the equilibrium price level and decrease aggregate…

A: Statement is True.

Q: If inventories unexpectly rise, then production ______________ sales and firms will respond by…

A: If there is a rise in the inventories, it will be quite evident to the firms that they are producing…

Q: Producers will change their prices when GDP is at the equilibrium level.  True or  False

A: Gross Domestic Product is the sum total amount of goods and services produced in the economy at a…

Q: Calculate the value of marginal propensity consume if change in consumption is $4000 and the change…

A: The information provided to us is as follows:- Change in consumption = $4000 Change in income =…

Q: Will the shift of SRAS to the right tend to make the equilibrium quantity and price level higher or…

A: The total supply of goods and services that companies in a national economy expect to sell over a…

Q: if an inflationary gap exists, what will happen to business inventories?

A: The difference between what gross domestic product (GDP) would be at full employment and the actual…

Q: A movement up a given aggregate demand curve is the result of

A: Demand is regarded as an economic principle which refers to a consumers desire to buy goods and…

Q: Suppose most business executives expect a slowdown in the economy.  How might this situation affect…

A: The loss of business and consumer confidence leads to an economic recession.

Q: observed correlation between the price level and real GDP may be low because

A: The price level in an economy is negatively correlated to the real GDP.

Q: In an economy the marginal propensity to consume is 0.9 and increase in investment is of 100 million…

A: Below is the given values: The marginal Propensity consume = 0.9 Increase in investment = 100…

Q: What is the present status of consumer confidence as measured by the Conference Board’s index? How…

A: CB is an independent economic research organization which issues monthly measures of consumer…

Q: If planned expenditures are below actual production, what will happen to income?  Explain the…

A: If planned expenditure is below than the actual production, then the income will decrease. Because,…

Q: Find the aggregate supply when the aggregate demand is given as $888 billion.

A: Generally in the given question Aggregate supply refers to the total supply of the certain amount of…

Q: the consumption schedule shows

A: The consumption schedule shows the relationship between consumption and level of disposable income.…

Q: Identify factors that would cause consumption spending to increase. What effect would that have on…

A:

Q: If the price level increases, what happens to the consumption function? Why?

A: The following problem has been solved as follows:

Q: Y =  C +  S even when the economy is not in equilibrium.  True Or False

A: In an economy, saving is the part of income which is not spent on consumption expenditure, and so Y…

Q: True or False: The economy is currently in long-run equilibrium. True False The economy is best…

A: Keynesian AD-AS model provides a framework for the determination of equilibrium level of output and…

Q: Find the value of aggregate supply when the consumption expenditure is $2000 and saving are $400

A: Aggregate Supply is also called Total Output. Aggregate Supply=Output=Income There are mainly two…

Q: improvements in productivity shift the aggregate supply curve outward. true false

A: The aggregate supply curve shows the total quantity of output real GDP that firms will produce and…

Q: The expenditure schedule and the aggregate demand curve show much the same thing, with one crucial…

A: The expenditure schedule is the component of the aggregate demand. The impact of change in price…

Q: Inflationary GDP is the amount by which equilibrium real GDP falls short of the full employment…

A: Inflationary gap is said to exists when the aggregate expenditure exceeds the full employment real…

Q: The French economist Jean-Baptiste Say trans-  formed the equality of total output and total…

A: OPTION C - Supply creates its own demand This is called the Say's Law.  It says that if a good is…

Q: Which of the following would increase aggregate demand?   A) Increase in taxation.   B)…

A: The aggregate demand curve in Keynesian economics shows all the combinations of output level and…

Q: Find the value of the aggregate demand when the consumption demand is $130 and the invesment demand…

A:

Q: If the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $30…

A: MPC= Percentage of new income that is spent on consumption rather than saving

Q: If an inflationary gap exists, what will happen to business inventories?  How will producers…

A: The inflationary gap refers to a situation when the current level of real GDP is higher than the…

Q: When households cut back on their spending, then in the short run we tend to see the price level…

A: In an economy, households play significant role to determine the equilibrium price and output…

Q: If consumer confidence falls the impact upon the economy is _______________.   A downturn. An…

A: The gross domestic product(GDP) of an economy is defined as the market value of all the final…