Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 17.2, Problem 1ST
To determine
Impact of decline in taxes on labor market and rightward shift of the LRAS curve.
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How does the FE-line shift if the government relaxes its migration laws and allows for a higher number of people from abroad? a. the IS curve shifts to the left b. the IS curve shifts to the right c. the LM curve shifts to the left d. the LM curve shifts to the right e. the FE line shifts to the left f. the FE line shifts to the right
Using the AD-LRAS model, which of the following causes the price level to decrease and real potential GDP to increase? A(n)
Group of answer choices
increase in household taxes.
decrease in the labor-force participation rate.
increase in productivity.
decrease in interest rates.
Use the AD‐AS model graph to explain how the government can increase economic growth and reduce the rate of unemployment.
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