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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
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 of real money balances falls,causing the AE curve to shift downward.
- Interest rates fall. causing the AE curve to shift upward
- Aggregate income rises, causing the AE curve to shift upward
- The stock of capital grows, increasing potential GDP
QUESTION 3
As the economy begins to reopen, consumers have become more optimistic. This will cause...
- A leftward shift of the LRAS curve
- A rightward shift of the SRAS curve
- A rightward shift of the AD curve
- A leftward shift of the AD curve
QUESTION 4
The position of the LRAS curve is determined by...
- The level of resources an economy has.
- The efficiency with which the economy utilizes its resources.
- The legal and political institutions within an economy.
- All of the above.
QUESTION 5
Suppose the economy is in a recessionary gap. Then,
- Fiscal policy can be used to move AD right, and restore full employment.
- Fiscal policy can be used to move SRAS right,and restore full employment.
- Fiscal policy can be used to move LRAS left,and restore full employment.
- The economy is perpetually stuck in a short-run equilibriumwith high unemployment.
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