Refer to Figure 9.2. A movement from point a to point d could be caused by a simultaneous Select one: Oa. decrease in taxes; massive crop failure O b. increase in taxes; increase in the price of oil C. decrease in the money supply; decrease in government spending d. increase in government spending; decrease in the price of oil

Q: 3.c. Government raised the tax. Answer how the curves below would shift. Aggregate demand curve:…

A: The quantity of goods demanded at different price level in the economy is reffered to be as…

Q: 1. Classical school of economic thought assumes prices to be flexible because it considers the econ-…

A: Classical school of economic thought believed that the market forces of demand and supply, which is…

Q: Question 5 If the government wants to reduce unemployment using fiscal policy, it may do so by…

A: "Since you have asked multiple questions, we will solve the first one for you. If you want any…

Q: Which curve shifts and in which direction when the following events occur in the tax accounting…

A: a) Answer:- Demand increases. Explanation:- On tax day, ever more individual are going to look to…

Q: Explain why it is important that prices are flexible in our economy. What are the implications if…

A: Price refers to the amount paid or charged for the goods and services, commodities and products…

Q: If real GDP is $40 billion, the price level 30, and the velocity of money is 24, what does the…

A: Given data: Real GDP is $40 billion Price level is 30 Velocity of money is 24

Q: The government of the United States is worried that the inflation rate is too high. What fiscal…

A: Option D To reduce the inflation rate, the government has to undertake steps to reduce the level of…

Q: 1. The reasons why prices are inflexible downward are: a.. investments in training, morale and…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: consumers increased consumption by a relatively small amount in 2008 and 2009 because thet believe…

A: This is explained by the permanent income hypothesis which implies that people will spend money…

Q: ppose mortgage rates are increasing from 5% to 9%, and the rate of using prices is expected to rise…

A: The answer is -  C. People are less likely to buy houses, because the real cost of financial a house…

Q: u(x,y)=x^3+y, p_y=2; find ordinary demand for x. Calculate CS when p_x=1

A: Utility function : U(x, y ) = x3 + y  py = 2  ,  An optimizing consumer consumes at the point where…

Q: Price Level Ps P₂ P₁ Y₁ LRAS Y₂ an increase in taxes O a reduction of the money supply O revision…

A: Leftward shift in SRAS shows decrease in aggregate supply.

Q: Which of these is a negative effect of increasing price leve a. Increases the real value of money O…

A: Aggregate demand would increase.

Q: Suppose a country is currently in a recession. What is the most likely response by the Federal…

A: A country is in recession when the current level GDP of the country is lower than the potential…

Q: Aggregate demand measures: the average price of all goods and services demanded. O the total output…

A: Aggregate demand:-                                   AD=C+I+G+NX where; AD= Aggregate demand C=…

Q: 20. What is the most important characteristic of the equilibeium price? It clears the market,…

A: As we answer only three subparts and the question has more than 3 subparts, we would be answering…

Q: If the price level falls . The value of money increases. The money supply increases. O The value of…

A: Answer is given below

Q: In each case, state the direction of the change and give a formula for the size of the impact. a. An…

A: [a] Moving according to the Keynesian cross model, there is AD and AS play an important role. Due to…

Q: 1. Demand in two perfectly competitive markets increases by the same amount in each market. In…

A: The correct solution is option c.

Q: the government wants to reduce unemployment, government spending should be---      and/or taxes…

A: *Answer:  increased; decreased The increase government spending increases jobs and decreases in…

Q: Explain what would happen to AS or AD (choose AS or AD according to the case) in an economy in the…

A: AD is sum of consumption spending, investment spending, government purchases and net exports. AS is…

Q: A feature of goods and service markets is that they consider the different prices and quantities…

A: The demand shows people ability and willingness to purchase goods and services while supply shows…

Q: If the price level increases from 110.0 to 115.0, the quantity of O real GDP supplied will increase.…

A: Changes in price level will cause movement along the aggregate demand curve and aggregate supply…

Q: Aggregate supply describes the O a) relationship between suppliers' spending and output. O b)…

A: The aggregate supply curve depicts the relationship between the producer's willingness to supply…

Q: If the government cut expenditures during an expansion O A. it would have to raise the tax rate O B.…

A: Expansion in economics means the increase in production and employment. Because of this, the income…

Q: If wages adjust fully to price increases in the long run, fiscal policy will Select one: O a. have…

A: In long run, as wages adjust, we have changes in aggregate supply, thus output reaches to its…

Q: The federal government decides to impose a hefty tax on the sale of cars. a) What is the effect on…

A: Answer -  Part (a) -Answer  - As federal government  decides to impose  a hefty tax on the sale of…

Q: Supply side economics says we should talk about "the economy" because can't explain incentives to…

A: The above question is about "Reaganomics" and the term Reaganomics states the economic policies of…

Q: QUESTIONS Use the table below to answer the question, Polental GOP 50.000 $9.000 $9.000 $0.000…

A: The economy reaches at full employment when actual GDP is equal to potential GDP. When actual GDP is…

Q: The aggregate supply curve shows the relationship between the price level and the: O potential GDP…

A: Supply refers to the quantity of the good which a producer is willing to produce and sell in the…

Q: > A Moving to another question will save this respons Question 18 The economy is in a rocession. The…

A: The concept of multiplier will be used here. A government spending multiplier is a tool to measure…

Q: A B C AS2 ASı AS1 AS2 AS2 AS1 AS1 ADAD2 ADA AD2 AD2 AD1 E F G H i MS: MS2 MS1 MS2 MS1 MS2 • MS, MS2…

A: Goods markets are marketplaces where businesses and individuals engage to buy and sell goods and…

Q: during aggregat demand to decrease because a) household wealth decreased, leading to a decline in…

A: When stock prices decline, it decreases the wealth of the people. This reduces the purchasing power…

Q: An increase in the overall level of prices in an economy is referred to as Select one: O a. supply O…

A: The phenomenon of increasing the general price level of the economy is called Inflation. Supply is…

Q: Explain what would happen to AS or AD (choose AS or AD according to the case) in an e prices and…

A: Macroeconomic equilibrium is achieved at a point where aggregate demand curve intersects aggregate…

Q: . Deflation is- (A) A situation of falling prices (B) A situation of rising prices o (C) A situation…

A: According to the given question in simple word we can say that deflation is a generally decrease in…

Q: 29) Suppose that from 2017 to 2018, unemployment went from 7.2 to 5.6% and inflation went from 2.17…

A: From the above information, we can say that in the year 2017-18 inflation and unemployment both…

Q: According to your own point of view, which specific output gap most impacts the economy, the…

A: Inflationary gap measures the inflation where AD > AS ( at full employment level . )  This give…

Q: Suppose that the policy-makers of a foreign country decide to enact policy that reduces unemployment…

A: Answer- The change in the graph will be -

Q: Suppose that the policy-makers of a foreign country decide to enact policy that reduces unemployment…

A: Aggregate supply curve in classical model is vertical straight line at the full employment…