ECON.TODAY (COMPLETE)-TEXT ONLY
18th Edition
ISBN: 9780133882285
Author: Miller
Publisher: PEARSON
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Chapter 11, Problem 2FCT
To determine
Whether the increase in the value of a dollar on equilibrium real
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Using the Equation of Exchange, argue how increasing government spending can help the economy/aggregate demand.
The Aggregate Demand- Aggregate Supply (AD-AS) model can be used to illustrate that by choosing the right combination of measures (policies) it is possible for the economy to grow without it experiencing inflationary pressures. Discuss four supply-side measures that policy makers can implement to expand the economy without increasing the inflationary pressure in the country? (20
Which of the following tends to make aggregate demand shift further to the right than the amount by which government expenditures increase?
a.
the crowding-out effect
b.
the interest-rate effect
c.
the multiplier effect
d.
the exchange-rate effect
Chapter 11 Solutions
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