Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can you please help me answer this multiple choice: Question 13 1 pts Suppose the government lowers taxes on household by $20m and the marginal
Can you please help me answer this multiple choice:
Question 13 1 pts Suppose the government lowers taxes on household by $20m and the marginal propensity to consume is 0.6. If there is no crowding out effect, by how much will aggregate demand increase? O $50m O $20m O $12m O $30m Question 14 1 pts If the long-run Phillips curve shifts to the right, the economy will have ___._ for any given rate of money growth and inflation. O lower unemployment and lower output O higher unemployment and lower output O higher unemployment and higher output O lower unemployment and higher output Question 15 1 pts A sacrifice ratio of 5 implies that: O Unemployment must increase by 5 percentage points in order to reduce inflation by 1 percentage point O Unemployment must increase by 1 percentage points in order to reduce inflation by 5 percentage points 1 percentage points of annual output is lost in order to reduce inflation by 5 percentage points O 10 percentage points of annual output is lost in order to reduce inflation by 2 percentage pointsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started