A decrease in the price level will: (2) (a) shift the AS curve to the left. (b) shift the AD curve to the left. (c) shift the AS curve to the right. (d) leave both the AD curve and the AS curve unchanged
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A decrease in the price level will: (2) (a) shift the
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- PLEASE ANSWER ALL MULTIPLE CHOICE QUESTIONS (1-4) 1. Which of the following is FALSE in regards to an overnight target rate of 3.25%? a) The Bank of Canada will pay 3% interest on Chartered Banks' deposits with the Bank of Canada. b) The Bank of Canada will charge 3.5% on loans taken by the Chartered Banks from the Bank of Canada. c) The unemployment rate MUST be equal to the overnight target rate. Hence the unemployment rate is ALSO EQUAL to 3.5%. d) The overnight target rate is the interest rate that Chartered Banks will use when borrowing and lending money to each other. e) There are NO FALSE statements. All solutions provided are correct. 2. If there is an expected increase in Canada's overnight rate, what should we expect to occur? a) The Canadian dollar will be more valuable relative to other currencies. The Canadian dollar sees an increase in demand by foreigners seeking Canadian bonds and interest bearing investments. b) Canadian exports will rise. c) The stock market will…Disposable income - 200, 225, 250, 275, 300 Consumption - 205, 225, 245, 265, 285 Refer to the above data. The marginal propensity to consume is;The first answer choices are "shift the AD curve leftward, shift the AD curve rightward, shift the AS curve leftward, shift the AS curve rightward". The second answer choices are "rise, fall, remain unchanged". The third answer choices are "rise, fall, remain unchanged".
- Comment, on the likely outcome with sufficient arguments? a) Impact on aggregate demand of the economy if imports are greater than exports.b) Impact on aggregate demand if the GDP of trading partner is increasing at a faster rate than that of India.c) Inflation rate in the country has reached 6.73%.True/ false A increase in the general price level is a good sign to the well being of the people.Produce a fully labeled AS-AD graph showing the results on AS, the general price level, and output from Congress passing an infrastructure bill providing funding for improvements in US infrastructure.
- COVID-19 has sent the economy of Classica into recession. The finance ministry has advised the government to lower stamp duty and other purchase service charges for those wanting to buy existing houses in order to boost economic growth. As well, the finance ministry wants the government to also cut company taxes as this will lead to firms increasing their level of investment in the economy. The President of Classica has asked you, as her chief economic advisor, for your views. In particular, she wishes to know the following: Your father has just stated that countries with high levels of debt-to-GDP ratios are poor countries and that countries with low levels of debt-to-GDP ratios are rich countries. Explain why you agree or disagree with this statement and provide real world evidence to support your argument.Due to COVID-19 the demand for bath tissue papers and paper towels increased by canadian citizen. It has increased the canadian Aggregate demand. True or False.Analyse the macroeconomic factors relevant to Mīhī's launch strategy and the implications of such factors. DO NOT USE AI.
- OceanGate sells external hard drives for $184 each. Its total fixed costs are $27 million, and its variable costs per unit are $120. The corporate tax rate is 40%. If the economy is strong, the firm will sell 8 million drives, but if there is a recession, it will sell only half as many. a. What will be the percentage decline in sales if the economy enters a recession (round answer to 2 decimal places)? Percentage decline in sales ?% b. What will be the percentage decline in profits if the economy enters a recession (round answer to 2 decimal places)? Percentage decline in profits ?% c. Calculate the operating leverage of this firm (round to 2 decimal places). DOLIf one of the item in a simple aggregate price index is milk, the index will be unchanged if the price of milk is expressed in dollars per quart instead of dollars per gallon. In a Passche index, prices are weighted according to the quantities of the various items in the base period. The Consumer Price Index is a simple aggregate index.One application of the Consumer Price Index is to automatically increase wages or benefits through its inclusion in labor contracts. "Real income" refers to the amount money available after government taxes have been paid. The Producer Price Index measures changes in the physical volume or quantity of output of manufacturing, mining, and electric and gas utilities. TRUE OR FALSEsubquestions a and b. * for a) - need to find the IS equation, also the LM equation and the equilibrium.