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I need your help. QUESTION 1 Suppose AE =.50x Y +100.Calculate Y*. 100 200 50 1000 QUESTION 2 When the price level rises: The value

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QUESTION 1

Suppose AE =.50x Y +100.Calculate Y*.

  1. 100
  2. 200
  3. 50
  4. 1000

QUESTION 2

When the price level rises:

  1. The value of real money balances falls,causing the AE curve to shift downward.
  2. Interest rates fall. causing the AE curve to shift upward
  3. Aggregate income rises, causing the AE curve to shift upward
  4. The stock of capital grows, increasing potential GDP

QUESTION 3

As the economy begins to reopen, consumers have become more optimistic. This will cause...

  1. A leftward shift of the LRAS curve
  2. A rightward shift of the SRAS curve
  3. A rightward shift of the AD curve
  4. A leftward shift of the AD curve

QUESTION 4

The position of the LRAS curve is determined by...

  1. The level of resources an economy has.
  2. The efficiency with which the economy utilizes its resources.
  3. The legal and political institutions within an economy.
  4. All of the above.

QUESTION 5

Suppose the economy is in a recessionary gap. Then,

  1. Fiscal policy can be used to move AD right, and restore full employment.
  2. Fiscal policy can be used to move SRAS right,and restore full employment.
  3. Fiscal policy can be used to move LRAS left,and restore full employment.
  4. The economy is perpetually stuck in a short-run equilibriumwith high unemployment.

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