Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 9, Problem 3WNG
(a)
To determine
Estimate the self-regulation out of a recessionary gap.
(b)
To determine
Estimate the self-regulation out of an inflationary gap.
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Students have asked these similar questions
Which of the following would likely cause an upward parallel shift in the AE curve and a rightward shift in the AD curve?
an increase in the MPC
an increase in the price level
a decrease in the price level
a reduction in government purchases
an increase in the business confidence of firms.
Which of the following both shift aggregate demand left?
Answer
a decrease in taxes and at a given price level consumers feel more wealthy
a decrease in taxes and at a given price level consumers feel less wealthy
an increase in taxes and at a given price level consumers feel more wealthy
an increase in taxes and at a given price level consumers feel less wealthy
Which of the following would NOT cause a shift in AD?
Select one:
a. A reduction in interest rates
b. A fall in the cost of production
c. A reduction in income tax
d. An increase in government spending
Chapter 9 Solutions
Macroeconomics
Ch. 9.1 - Prob. 1STCh. 9.1 - Prob. 2STCh. 9.1 - Prob. 3STCh. 9.2 - Prob. 1STCh. 9.2 - Prob. 2STCh. 9.2 - Prob. 3STCh. 9.3 - Prob. 1STCh. 9.3 - Prob. 2STCh. 9.3 - Prob. 3STCh. 9 - Prob. 1QP
Ch. 9 - Prob. 2QPCh. 9 - Prob. 3QPCh. 9 - Prob. 4QPCh. 9 - Prob. 5QPCh. 9 - Prob. 6QPCh. 9 - Prob. 7QPCh. 9 - Prob. 8QPCh. 9 - Prob. 9QPCh. 9 - Prob. 10QPCh. 9 - Prob. 11QPCh. 9 - Prob. 12QPCh. 9 - Prob. 13QPCh. 9 - Prob. 14QPCh. 9 - Prob. 15QPCh. 9 - Prob. 16QPCh. 9 - Prob. 17QPCh. 9 - Prob. 18QPCh. 9 - Prob. 1WNGCh. 9 - Prob. 2WNGCh. 9 - Prob. 3WNGCh. 9 - Prob. 4WNGCh. 9 - Prob. 5WNGCh. 9 - Prob. 6WNGCh. 9 - Prob. 7WNG
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Similar questions
- Suppose MPC = 0.8 and government spending increases by 1 trillion dollars. In the AD-AS equilibrium, the effect on real GDP will be?arrow_forwardIn general, an increase in the price level results in a movement downward along the AD curve. movement upward along the AE curve. downward shift of the AE curve. upward shift of the AD curve.arrow_forwardThe Keynesian view of the AD/AS model states that when beginning from potential output equilibrium, any increase in AD will :arrow_forward
- Suppose that in 2008, Sanaton’s government increases taxes. Show how this event will change equilibrium output and price level by shifting either the SRAS or AD curve, and then answer the questions below. Did equilibrium output increase or decrease?Increase/Decrease Did equilibrium price increase or decrease?Increase/Decreasearrow_forwardConsider just the AD curve. Suppose consumption (C) broadly increases across the entire economy. This will cause a. a movement along the AD curve b. the AD curve to shift outward c. the slope of the AD curve to get steeper d. a decrease in the price level of the economyarrow_forwardThe Keynesian view of the AD/AS model states that when beginning from potential output equilibrium, any decrease in AD will : Group of answer choices a Decrease real output and decrease prices b Decrease real output and increase prices c Decrease real output and do not affect prices d Increase real output and decrease pricesarrow_forward
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