Suppose the current price level in the economy is 150 and real GDP is$5t. Net exports fall by$1t. What must be true? A the price level is now more than 150B SRAS shifts to the left(C) the price level is now less than 150(D) SRAS shifts to the right Which of the following will shift the AD curve to the left?A increase in imports (IM)Bincrease in disposable incomedecrease in taxesincrease in investment (1)You reached the end of the assessment and still have unanswered questions. Do you want to review them before submitting? Why does crowding out occur?A taxes decrease by the same amount as government expenditures (G) increaseBDinterest rates fall and private investment (1) increasesindividuals increase their consumption of private goods (C) by the same amount as government expenditures (G)increaseinterest rates rise and private investment (1) decreases

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Suppose the current price level in the economy is 150 and real GDP is$5t. Net exports fall by$1t. What must be true? A the price level is now more than 150 B SRAS shifts to the left (C) the price level is now less than 150 (D) SRAS shifts to the right

Suppose the current price level in the economy is 150 and real GDP is$5t. Net exports fall by$1t. What must be true? A the price level is now more than 150 B SRAS shifts to the left (C) the price level is now less than 150 (D) SRAS shifts to the right

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 3WNG

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Question

Suppose the current price level in the economy is 150 and real GDP is$5t. Net exports fall by$1t. What must be true? A the price level is now more than 150

B SRAS shifts to the left

(D) SRAS shifts to the right

Which of the following will shift the AD curve to the left?
A increase in imports (IM)
B
increase in disposable income
decrease in taxes
increase in investment (1)
You reached the end of the assessment and still have unanswered questions. Do you want to review them before submitting?

Why does crowding out occur?
A taxes decrease by the same amount as government expenditures (G) increase
B
D
interest rates fall and private investment (1) increases
individuals increase their consumption of private goods (C) by the same amount as government expenditures (G)
increase
interest rates rise and private investment (1) decreases

Definition Video Definition Overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period. Video

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