Exploring Economics
Exploring Economics
8th Edition
ISBN: 9781544336329
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
Question
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Chapter 23, Problem 3P
To determine

(a)

To explain:

Whether an increase in positivity of consumer will increase the aggregate expenditure.

To determine

(b)

To explain:

Whether an increase in purchase of imports will increase the aggregate expenditure.

To determine

(c)

To explain:

Whether an increase in sales of exports will increase the aggregate expenditure.

To determine

(d)

To explain:

Whether pessimism by business owners will increase the aggregate expenditure.

To determine

(e)

To explain:

Whether an increase in government spending will increase the aggregate expenditure.

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Students have asked these similar questions
which of the following would cause the aggregate expenditure line to shift downward? A   Congress passes additional unemployment benefits. B   Following the Covid 19 pandemic, households are pessimistic about their future income levels. C   The government raises income taxes. D   Housing prices rise. E   Actions by the Federal Reserve cause real interest rates to rise. F   An increase in income in Asia leads to growth of U.S. exports.
how will the different components of aggregate expenditure be affected by the increase in government spending? Analyse both the short run and the long run effect upon the components of aggregate expenditure.
If economists forecast a decrease in aggregate expenditure, which of the following is likely to occur?GDP will rise. GDP will fall. Wages will rise. Inventories will fall.
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