The intersection of the aggregate demand and aggregate supply curves determines the Multiple Choice productivity level in the economy. shape of the aggregate demand curve. per-unit cost of production in the economy. equilibrium level of real domestic output and prices.
Q: In the long run, equilibrium output in the economy: Group of answer choices Will be less than…
A: There is a significant difference between the market optimal output between short-run and long-run…
Q: A broad based increase in taxes will lead to A an increase in households' disposable income and will…
A: If the broad based taxes increase the disposable income of people will fall and they will be willing…
Q: Suppose a state aims to make it easier for people to purchase school supplies for children by…
A: Sales tax holiday refers to the limited time period where sales tax is reduced or waived off on few…
Q: United States, the various state governments almost all have laws that require them to balance their…
A: Expansionary fiscal policy is utilized to launch the economy during a recession. It supports total…
Q: Consider the economy of Cocoland, where citizens consume only coconuts. Assume that coconuts are…
A: When tax rate decreases as the amount subject to taxation increases, it is regressive taxation. When…
Q: Tax Revenue and Marginal Tax Rates: Laffer Curve 31. The Laffer Curve is a critical component in the…
A: Answer to the question is as follows :
Q: The ratchet effect means that: Multiple Choice when aggregate demand increases, the price…
A: The ratchet effect alludes to accelerations underway or costs that keep an eye on self-sustain. When…
Q: Which of the following is a major function of a whip? He/she decides who can speak on the…
A: A whip is an authority of a party whose task is to make sure party discipline during a legislature.…
Q: Classical economists believed that: price flexibility automatically directs market economies to full…
A: Classical theories suggests that supply generates its own demand. Surplus income in the economy…
Q: Which of the following will necessarily result in an increase in output? a. Decrease in the…
A: The aggregate demand and aggregate supply in an economy determine the macroeconomic equilibrium in…
Q: Aggregate demand is the total quantity of output A)consumers actually buy. B) producers are…
A: Aggregate demand is the sum of four components: consumption, investment, government spending, and…
Q: The aggregate supply curve is probably better thought of as a price/output response curve. Select…
A: Aggregate supply refers to the total value of goods and services available for purchase at a…
Q: If actual GDP is less than potential GDP: Group of answer choices businesses are producing at…
A: When Aggregate demand and aggregate supply are equal , goods market is in equilibrium . And it…
Q: 23)Which of the following is classified as Fiscal Policy? Select one: a. The federal government…
A: 23.Answer is (a) Tax cut is an example of fiscal policy.To decrease air pollution,federal government…
Q: Total planned expenditure is also called ______. a. Exports minus imports b. Aggregate demand c.…
A: Since planned expenditure is pre planned by the government where they will going to spent, they…
Q: An economist who favors smaller government would recommend: tax cuts during recession and…
A: Economists, such as classical, favor smaller government as they emphasize the role of the invisible…
Q: During the past five decades, there has been a shift in the composition of the federal budget toward…
A: The government budget represents the spending plans of the government of an economy for a given…
Q: In 1968, mandatory government spending was approximately ________ of GDP and in 2108 mandatory…
A: Government spending is in the form of making expenditures on the social welfare of the society which…
Q: Which of the following is NOT counted in the "G" component of spending a. social security payments…
A: Answer- Need to find- Which of the following is NOT counted in the "G" component of spending…
Q: Which of the following is not an example of government spending hike that will increase aggregate…
A: The government expenditure would result in the expenditure of the government in infrastructure and…
Q: A decrease in interest rates caused by a change in the price level would cause a(n): A)…
A: The aggregate demand curve represents the total quantity of all goods and services demanded by the…
Q: Pundits have stated that the recent tax cut mainly benefits companies. The benefit to companies can…
A: Lower tax rates increase the spending power of consumers and may increase aggregate demand,…
Q: increase in the amount of capital that firms purchase would initially shift: Question 52 options:…
A: A rise in the value of an asset or investment over time is called capital growth or capital…
Q: What has been the impact of the Supreme Court ruling in Citizens United v. Federal Election…
A: The Supreme Court of the United States is the country's highest court. It is the judicial branch of…
Q: The marginal propensity to consume for this economy is …………. if income rises from $9000 to $10000…
A: In economics, the consumption function describes the relationship between consumer spending and the…
Q: Higher corporate taxes, higher capital gains taxes, and higher marginal tax rates shift aggregate…
A: A charge that is being imposed by the government on the income of individuals, goods or services or…
Q: an economic boom in the US would cause the aggregated demand curve in other countries to shift…
A: In an economy, the boom period is one in which an economy is at it peak in which there is the…
Q: Due to a shift in the aggregate supply curve output and price level move in __________ directions:…
A: The aggregate supply curve is the graphical depiction of the overall supply of output in the…
Q: In the light of fundamentals of supply-side economics and demand-side economics highlight the…
A: The idea of supply-side economics is based on the that "supply creates its own demand" therefore…
Q: Omani government wanted to reduce the supply of high sugar drinks in the economy. As an economist,…
A: In order to decrease the supply of some good, we need to increase the costs of production for that…
Q: Which of the following statements regarding the discount rate is correct? a. The private discount…
A: Discount rates are classified as private & social discount rates. A discount rate is used to…
Q: Suppose governments increase spending for Social Security pensions. Explain why the increased…
A: Answer - Given in the question - Suppose governments increase spending for Social Security pensions…
Q: . Using the expenditure approach, government expenditures include a) defense and nondefense federal,…
A: In the expenditure approach of GDP, the expenditure of the government includes the spending of money…
Q: A cut in personal taxes on households’ income: A shifts the aggregate demand curve to the left. B.…
A: Taxes bring down families' net income. The sum gathered in taxes doesn't discover its way into…
Q: If the MPC in an economy is 0.6, government could shift the aggregate demand curve rightward by $30…
A: MPC is the marginal propensity to consume. It is that part of income or increase in income which is…
Q: An aggregate supply curve represents the relationship between the Multiple Choice price level and…
A: In the real market, the P(price level) and real output is determined by the intersection of…
Q: Which of the following is not an example of fiscal policy? Group of answer choices All of these…
A: The tool that government use in order to balance the economy is called fiscal policy tool.
Q: In the market for a good, the aggregate demand and supply are summarized by the following…
A: Given Aggregate demand Qd (p) = 20−p and supply Qs (p) = 2p−4 government charges a per-unit tax…
Q: Using the Aggregate Supply -Aggregate Demand model describe both the short run and the long run…
A: If there is reduction in corporation tax,aggregate demand would increase due to increase in money…
Q: Which of the following is true? A. Potential GDP decreases as the price level increases. B. At…
A: Aggregate supply refers to the entire amount of output that companies will create and sell—in other…
Q: Potential GDP corresponds to the concept of A aggregate supply. real GDP. C real GDP per capita.…
A: PLEASE FIND THE ANSWER BELOW.
Q: When prices rise, the rich benefit at the expense of the poor the poor benefit at the expense of…
A: The rise in the overall prices is known as inflation.
Q: a tax decrease will decrease consumption a tax increase will increase consumption consumption…
A: A direct relationship implies that an increase in variable A leads to an increase in variable B…
Q: Proposed the four strategies and enforcement for the Malaysian government in the future directions…
A: There are many measures that can be taken in order to reduce the fluctuation in macroeconomics like…
Q: Show the production and consumption elasticities in the Open and Closed Economy with the help of…
A: In Closed Economy An economy that has no trading activity with other economies and which is entirely…
Q: Suppose that the United States limits sugar imports by using a quota and that the quota is enforced…
A: Social welfare is a concept of welfare economics that tries to evaluate the cots and benefits of the…
Q: When comparing an increase in government spending on goods and services to an increase in private…
A: The gross domestic product measures the market value of all the final goods and services produced in…
Q: Analyze whether each of the following is primarily a microeconomic or a macroeconomic issue: a)…
A: Microeconomics in simple words we can say that it analysis or study the economic behaviour of the…
Q: A vertical aggregate supply graph indicates that aggregate demand has no effect on: A) Prices B)…
A: Aggregate supply curve shows relationship between price and quantity of output supplied.
Q: When consumption taxes decrease, consumption Group of answer choices increases as shown by a…
A: The aggregate demand in the open economy is summation of consumption expenditure, investment…
The intersection of the aggregate
-
productivity level in the economy.
-
shape of the aggregate demand curve.
-
per-unit cost of production in the economy.
-
equilibrium level of real domestic output and
prices.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Q16 The quantity of real GDP supplied at different price levels is reflected by the Select one: a. total expenditure curve. b. aggregate demand curve. c. real wealth curve. d. aggregate supply curve.Total planned expenditure is also called ______. a. Exports minus imports b. Aggregate demand c. Aggregate supply d. Revenues greater than expensesOther things equal, as consumers increase their savings to pay off their debts will Multiple choice: shift the aggregate demand curve to the left. shift the aggregate supply curve to the right. shift the aggregate supply curve to the left. shift the aggregate demand curve to the right.
- Identify which expenditure category each of the following will directly impact, and also which direction the U.S. aggregate demand curve will shift as a result.a. Incomes increase abroad.b. Interest rates decrease.c. Congress passes a permanent tax cut.d. Firms become more optimistic about the outlook for the economy.e. Stocks traded on the NASDAQ market lose 40 percent of their value in one month's timeThe determinants of aggregate supply: A) are consumption, investment, government, and net export spending. B) include resource prices and resource productivity. C) explain the three distinct ranges of the aggreagate supply curve. D) explain why real domestic output and the price level are directly related.Aggregate Demand (AD) - According to the Total Supply (AS) Model, by comparing the initial equilibrium situation that will occur due to the realization of the following two developments together in an economy and the last equilibrium state in terms of the change in the General Level of Prices and Equilibrium National Income (increases / decreases / does not change).a) The state increases the transfer expenditures.b) Increasing monopolization tendency in the economy.
- The model of aggregate demand/aggregate supply... A) Identifies the potential GDP and price level as well as the gap between the price level and the inflation B) Identifies the equilibrium GDP and price level as well as the gap between the equilibrium GDP and the potential GDP C) CIdentifies the equilibrium quantity and price for consumer goods D) Identifies the equilibrium GDP the economy will reach in the long runAn increase in the price of oil will cause Question 56 options: Real wages and unemployment to rise The GDP Deflator and real GDP to fall Real GDP to rise and the GDP Deflator to fall Unemployment and the GDP Deflator to riseSuppose that the aggregate demand and aggregate supply schedules for a hypothetical economy are as shown below: Amount of Real GDP Demanded, Billions Price Level (Price Index) Amount of Real GDP Supplied, Billions $100 300 $450 200 250 400 300 200 300 400 150 200 500 100 100 Plot the change in demand curve. 1. There was increase in price level from P200 to P250. 2. There was decrease in price from P200 to P150.
- 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.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 bothA cut in personal taxes on households’ income: A shifts the aggregate demand curve to the left. B. shifts the aggregate demand curve to the right. C. moves the economy along the aggregate demand curve . D. has no effect.
