In the short run, a rise in the federal funds rate shifts the a. AD curve leftward. b. SAS curve leftward. c. LAS curve leftward. d. None of these because a decrease in the quantity of money does not shift a curve.
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- Suppose the government increases expenditures while holding taxes the same. This will increase deficits or decrease surpluses Assume the increase in government expenditures, from above, occurs As a result of the increase in government expenditures, the O A money supply curve will shift right. OB. money demand curve will shift loft. C. money demand curve will shift right. D. The money supply curve will shift left.please dont use chatGPT otherwise give downvote Exhibit: Changes in the Money Supply The increase in money supply leads to a (n) Group of answer choices decrease in investment, a decrease in real GDP, and a shift to the left in the money demand curve. increase in investment, a decrease in real GDP,and a shift to the right in the money demand curve. increase in investment, an increase in real GDP,and a shift to the left in the money demand curve. increase in investment, an increase in real GDP,and a shift to the right in the money demand curve.If a central bank buys government securities from the private sector-money markets,leading to an expansion of the money supply, other things being equal, what would theeffect be on the following?(d) Aggregate Supply(e) Aggregate Demand(f) Economic activity(g) Price level of the economy can you help giving me these 4 ans.
- Consider in a country A: money supply M=3000, price level P=3, inflation expectation andliquidity preference is assumed to be zero to make the calculation simple. The money demandfunctionL(i,Y) =Y−200∗(r+πe). Consumption C=300+0.8*(Y-T)-20*r, investment functionis I=700-80*r, government spending and tax are both 500. (1) Solve the real interest rate and the real GDP in equilibrium. (2) If government spending and tax both increases by 150 to keep the government budgetbalance, what is the new equilibrium real interest rate and the new equilibrium real GDP.Question: The central bank buys $3,000 worth of bond in the open market ) How will the change in the money supply in part (d) affect consumption spending and real GDP in the short run ? Explain .If the U.S. government's budget deficits are increasing aggregate demand, and the economy is producing at a level that is substantially less than potential GDP, then: a) government borrowing is likely to crowd out private investment. b) an inflationary increase in the price level is in real danger. c) the central bank might react with an expansionary monetary policy. d) higher interest rates will crowd out private investment.
- Please no written by hand and no emage Assume that the economy is experiencing a negative GDP gap. If the Federal Reserve engages in expansionary monetary policy, which of the following best describes the outcome? Group of answer choices The aggregate demand curve shifts to the right, the economy moves toward potential RGDP, and the rate of inflation falls. The aggregate demand curve shifts to the right, the economy moves toward potential RGDP, and the rate of inflation rises. The aggregate demand curve shifts to the right, the economy moves toward potential RGDP, and the rate of inflation remains relatively stable.instructions: tackle question b only A. Given that in an economy, Given that in an economy, C = 102+0.7Y, I=150-100r, MS =300, Mt = 0.4Y, and Mz=125-200r where, Y= income, C= consumption, I= investment, MS= money supply, Mt= transactional-precautionary money demand, Mz= speculative money demand and r= interest rate. Calculate;1. The equilibrium level of income and interest rate in this economy.2. The level of C, I, Mt, and Mz when the economy is in equilibrium. B. Now, assuming the economy is open with government (G) participation and external trade which is summarized as follows; export(X)= 100-0.10Y, import(M)=50, G=100, Taxes(T)= 100 and C, I, MS, Mt, and Mz the same as defined in (a) above. Calculate; i. The equilibrium income and interest rate in this new economy. ii. The level of C, I, Mt, and Mz when the economy is in equilibrium iii. What exchange rate policy should government implement in (iii) to enhance income and why?Let’s consider a hypothetical economy where this year’s money supply is Tk.400, nominal GDP is Tk. 25000 and real GDP is Tk. 5000. b) Calculate the price level. d) Suppose the central bank adopts a contractionary monetary policy so that the new money supply is Tk. 300, calculate the new price level. e) Show stages b and d on a graph. Answer must be correct. Do all step and calculation and graph.
- A decrease in the interest rate, other things beingequal, causes a (an)a. upward movement along the demand curvefor money.b. downward movement along the demandcurve for money.c. rightward shift of the demand curve for money.d. leftward shift of the demand curve for money.1. The macroeconomy of a certain country is described by the following set of equations: Consumption: C = 0.8(Y − T) + 30 Investment: I = −2r + 40 Government expenditure: G = 30 Tax: T = 0.25Y + 20 The equilibrium condition of the monetary market is: 60/P= 0.8Y − 8r + 36 When P =1/3, how much is the equilibrium national income? A. 100 B. 200 C. 300 D. 400 E. None of the above 1-2. Please show the equation of the total demand. (In the form of “Y =…”) A. Y =25/P+ 125 B. Y =50/P+ 125 C. Y =25/P+ 250 D. Y =50/P+ 250 E. None of the above 2. Suppose we are considering a Solow Model without technology progress. Y=K3/4L1/4 Population growth rate=0.03 The capital accumulation is sY-dK s=0.2, d=0.07 Please calculate the capital per capita under the steady state. A. 20 B. 24 C. 8 D. 4 E. 12 F. 16 2-1. Please calculate the marginal product of labor at the steady state. A. 2 B. 1/2 C. 4 D. 8 E. 1 F. None is correct.The following set of equations describe an economy: C = 15,000+0.5(r-T)-50,000 rl^P = 10,000 - 25,000 г G = 8,000 NX = 2,600 T = 8,200 Y^* = 46,800 a. Find a numerical equation relating planned aggregate expenditure to output and to the real interest rate. PAE = b. At what value should the Fed set the real interest rate to eliminate any output gap? (Hint Set output Y equal to the value of potentia output given above in the equation you found in part a. Then solve for the real interest rate that also sets planned aggregate expenditure equal to potential output.) Instructions: Enter your response as a whole number. Real rate of interest:
