Foundations of Economics, Student Value Edition Plus MyLab Economics with eText -- Access Card Package (8th Edition)
8th Edition
ISBN: 9780134641843
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 29, Problem 5MCQ
To determine
To select:
The option that correctly explains the macroeconomic equilibrium.
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If house holds decide to save a larger portion of thier income, what effect would this have on the output, employment and price level in the short run
Which of the following is true of the change in the quantity of aggregate output demanded?
a.The change in the quantity of aggregate output demanded depends only on how much the aggregate expenditure line shifts.
b.The change in the quantity of aggregate output demanded depends only on the change in investment demand.
c.The change in the quantity of aggregate output demanded depends only on the change in government spending.
d.The change in the quantity of aggregate output demanded depends only on the change in interest rates.
Consider the economy described by the following equations:
C
= 1,600 + 0.9 (Y – T)
I p
= 800
G
= 1,600
NX
= 200
T
= 1,600
Y*
= 29,000
a. Complete the table shown below to find short-run equilibrium output. Consider possible values for short-run equilibrium output as they are given in the table below.Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.
OutputY
Planned aggregate expenditure (PAE)
Y – PAE
Y = PAE?
27,200
(Click to select) Yes No
27,400
(Click to select) No Yes
27,600
(Click to select) No Yes
27,800
(Click to select) No Yes
28,000
(Click to select) No Yes
b. Short-run level of equilibrium output: c. What is the output gap for this economy? Instructions: If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. The actual unemployment rate should…
Chapter 29 Solutions
Foundations of Economics, Student Value Edition Plus MyLab Economics with eText -- Access Card Package (8th Edition)
Ch. 29 - Prob. 1SPPACh. 29 - Prob. 2SPPACh. 29 - Prob. 3SPPACh. 29 - Prob. 4SPPACh. 29 - Prob. 5SPPACh. 29 - Prob. 6SPPACh. 29 - Prob. 7SPPACh. 29 - Prob. 8SPPACh. 29 - Prob. 9SPPACh. 29 - Prob. 10SPPA
Ch. 29 - Prob. 11SPPACh. 29 - Prob. 1IAPACh. 29 - Prob. 2IAPACh. 29 - Prob. 3IAPACh. 29 - Prob. 4IAPACh. 29 - Prob. 5IAPACh. 29 - Prob. 6IAPACh. 29 - Prob. 7IAPACh. 29 - Prob. 8IAPACh. 29 - Prob. 9IAPACh. 29 - Prob. 10IAPACh. 29 - Prob. 1MCQCh. 29 - Prob. 2MCQCh. 29 - Prob. 3MCQCh. 29 - Prob. 4MCQCh. 29 - Prob. 5MCQCh. 29 - Prob. 6MCQCh. 29 - Prob. 7MCQ
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