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- Name two macroeconomic variables that decline when the economy goes into a recession. Name one macroeconomic variable that rises during a recession.Please give a detailed solution with an explanation and answer all the questions provided in the image below.For the 3 blank answers here are the options:Blank Answer #1:investment or government purchases or consumptionBlank Answer #2:decreasing or increasingBlank Answer #3:an overall increase or an overall decrease or no overall changeA drop in the price level will have what effect in the aggregate demand model and the income-expenditure model?A.decreases aggregate demand and planned expenditures.B.increases aggregate demand, but decreases planned expenditures.C.decreases aggregate quantity demanded, but increases planned expenditures.D.increases aggregate quantity demanded and planned expenditures.
- Which of the following would shift the aggregatedemand curve to the left?a. A decline in the stock market.b. An increase in taxes.c. A decrease in government spending.d. All of the above.In a graph of the aggregate demand curve, an increase in investment by businesses is represented by a Multiple Choice movement up the curve. movement down the curve. rightward shift of the curve. leftward shift of the curve.In the model of aggregate demand and aggregate supply, the quantity of _____ is on the horizontal axis, and the _____ is on the vertical axis.
- Find equilibrium GDP using the following macroeconomic modelSuppose the government invests a significant amount in infrastructure. The model of aggregate supply and aggregate demand implies what effect on the economy?Let the national income model be; Y = C + I0 + G , C = a + b ( Y – T) , G = g Y Identify endogenous variables Find the equilibrium national income Find equilibrium consumption(using static equilibrium & matrix algebra both
- Are the determinants of aggregate demand the same things that apply to demand for an individual good?Which shows income and consumption levels for period 1 through 7, what is the marginal propensity to consume ?Good day . can you please assist on the following question below Multiple-choice questions: Select one correct answer for each of the following. Q.1.1 Which of the following represent injections into the circular flow of income and spending?(a) Exports and investment;(b) Government spending and imports;(c) Government spending and saving;(d) Imports and saving. Q.1.2 In the circular-flow diagram, the goods markets are where: (a) The households purchase goods from firms;(b) Firms purchase goods from government;(c) Firms purchase goods from households;(d) The government purchases goods from households. Q.1.3 Money overcomes the problem of a double coincidence of wants inherent in the barter system through its function as a:(a) unit of account.(b) store of value.(c) medium of exchange.(d) standard of deferred payment.
