The economy experiences an increase in the price level and a decrease in real domestic output. What is a likely explanation? Select one: a. government expenditures decreased b. resource prices have increased c. productivity has increased d. business taxes have decreased
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The economy experiences an increase in the
government expenditures decreased
resource prices have increased
productivity has increased
business taxes have decreased
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- Which statement is false? Select one: a. If consumers and businesses both increase spending, everyone's incomes falls. b. Consumer spending is business income. c. Falling wages decrease demand in output markets. d. Business spending is consumer income. e. If consumers and businesses both increase spending, employment increases.In australia,What happened to government purchases between 1960 and 2016? Select one: a. they generally fell b. they generally grew c. they grew steadily but declined during recessions d. they fluctuated significantlyIf the price level increases in the economy, A) The aggregate demand will fall and shift to the left. B) The total spending in the economy will fall. C) The aggregate supply will fall and shift to the left. D) The total spending in the economy will rise.
- A government will choose to increase spending: Multiple Choice a) to stimulate the economy. b) if households are growing wealthier c) when it expects tax revenues to increase. d) Incorrect when interest rates increase.On the diagram sample (a) show the effect of a decrease in interest rate on equilibrium on Goods market and on IS curve On the diagram sample (b) show the effect of a decrease in government spending on equilibrium on Goods market and on IS curveIn a situation of recession, what are the types of goods that will see their demand increase? Give examples
- If the price level increases in the economy, A) The total spending in the economy will fall. B)The aggregate supply will fall and shift to the left. C) The total spending in the economy will rise.Now consider an economy in which the government lowers its spending. In the long run, the result would be _____________ in the price level and _____________ in real output. an increase; an increase a decrease; no change a decrease; a decrease None of the listed options is correct. no change; a decreaseY = C + I even when the economy is not in equilibrium. t or f
- If the government increases expenditures on goods and services and increases taxation by the same amount, which of the following will occur? A. Aggregate demand will be unchanged. B. Aggregate demand will increase. C. Interest rates will decrease. D. The money supply will decrease.Question:- 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%.d) Impact on GDP when, Interest rates have come down in the countrye) Impact on balance of payment, when there is a huge demand of vaccines produced in India in South Africa.f) Inflation rate in India reaches negative 2% (-2%)g) The aggregate demand falls short of aggregate supply in the economyDescribe how different parts of the economy may have experienced shifts and changes in supply and demand. Provide at least 4 examples.