lu YouTube a Amazon BandLab PipelineMT 7 Google Calendar OUTLOOK Agent Portal 13"I D2L 1 - Fiscal Policy Esther Emeka Emeji: Attempt 1 Question 18 (1 point) During the 2020 campaign, Joe Biden proposed raising income taxes on those earning more than $400,000 per year and raising corporate taxes from about 21 percent to 28 percent. Consider the aggregate demand-aggregate supply diagram below, which represents the macroeconomy. Suppose the market is initially at an equilibrium at point A. What effect will a tax increase have on this economy? LRAS, SRASI Price level (GDP deflator, 2009 - 100) PI A MacBook Air DII F4 F5 F6 F7 F8 F9nework 11 - Fiscal Policy - P x 1HIST 2010 Final Exam Flashcar X /le/content/8906847/viewContent/84833916/View lu YouTube a Amazon BandLab PipelineMT 7 Google Calendar OUTLOOK @ Agent Portal WI D2L 1 - Fiscal Policy Esther Emeka Emeji: Attempt 1 MS Interest Rate, i MDI Quantity of Money. M (billions of dollars) The money supply curve will shift to the left. The money supply curve will shift to the right. The money demand curve will shift to the left. The money demand curve will shift to the right. MacBook Airtomework 11 - Fiscal Policy - F X Q HIST 2070 21/le/content/8906847/viewContent/84833916/View Youtube . Amazon BandLab PipelineMT 7 Google Calendar OUTLOOK Agent Portal D2L Essay G 11 - Fiscal Policy Esther Emeka Emeji: Attempt 1 Interest Rate, i MD Quantity of Money. M (billions of dollars) The money demand curve will shift to the right. The money demand curve will shift to the left. The money supply curve will shift to the left. The money supply curve will shift to the right. MacBook Air 20 F3 000 F4 F5 F6 F7 F8 F9omework 11 - Fiscal Policy - F x HIST 2010 Final Exam Flashcar x 21/le/content/8906847/viewContent/84833916/View Hulu YouTube a Amazon BandLab PipelineMT 7 Google Calendar|0 OUTLOOK Agent Portal 1221 D2L 121 Ess 11 - Fiscal Policy Esther Emeka Emeji: Attempt 1 Question 5 (1 point) Suppose that real GDP is currently $20.8 trillion, potential GDP is $22.4 trillion, the government purchases multiplier is 1.0, and the tax multiplier is -1.6. Holding other factors (such as prices and interest rates) constant, how will taxes (T) need to change to bring the economy to equilibrium at potential GDP? Provide your answer in dollars measured in trillions rounded to two decimal places. Use a negative sign "-" for negative changes. Do not include any symbols such as "$," "=," "%," or "," in your answer. Your Answer: Answer Question 6 (1 point) Consider the market for money illustrated in the figure below. What is the effect of an increase in taxes on the graph? MS Interest Rate, i MacBook Airnework 11 - Fiscal Policy - F x HIST 2010 Final Exam Flashcar x + /le/content/8906847/viewContent/84833916/View lu YouTube a Amazon BandLab PipelineMT 7 Google Calendar OUTLOOK Agent Portal 1'I D2L DI Es 1 - Fiscal Policy Esther Emeka Emeji: Attempt 1 Question 10 (1 point) Consider the economy represented by the aggregate supply-aggregate demand graph below, which is initially at a short-run equilibrium at point A. Suppose taxes increase. How would this affect the economy? LRAS1 Price level SRASI (GDP deflator, 2009 - 100) AD1 GDP+ GDP1 Real GDP (trillions of 2009 dollars) Inflation will increase. Employment will increase. MacBook AirYoutube Amazon BandLab PipelineMT 7 Google Calendar OUTLOOK Agent Portal 1.I D2L 1 - Fiscal Policy Esther Emeka Emeji: Attempt 1 Question 17 (1 point) Consider the economy represented by the aggregate supply-aggregate demand graph below, which is initially at a short-run equilibrium at point A. Suppose government spending increases. How would this affect the graph? LRAS1 Price level SRASI (GDP deflator, 2009 - 100) P1 AD1 GDP1 GDP* Real GDP (trillions of 2009 dollars) Potential GDP will increase. Real GDP will decrease. MacBook Air F3 000 DII F4 F5 F6 F7 F8 F9YouTube a Amazon BandLab PipelineMT [7 Google Calendar OUTLOOK Agent Portal 1VI D2L 1 - Fiscal Policy Esther Emeka Emeji: Attempt 1 LRAS1 Price level SRASI (GDP deflator, 2009 = 100) P1 AD1 GDP1 GDP* Real GDP (trillions of 2009 dollars) Unemployment will increase. Economic growth will decrease. Employment will increase. Inflation will decrease. Question 17 (1 point) MacBook Air DII F3 800 F4 F5 F6 F7 F8 F9121 Homework 11 - Fiscal Policy - P X HIST 2010 Final Exam Flashcar x + .edu/d21/le/content/8906847/viewContent/84833916/View Hulu YouTube a Amazon BandLab PipelineMT Google Calendar OUTLOOK @ Agent Portal rk 11 - Fiscal Policy :00 Esther Emeka Emeji: Attempt 1 increase. How would this affect the economy? LRAS1 Price level SRASI (GDP deflator, 2009 = 100) A PI ADI GDP+ GDP1 Real GDP (trillions of 2009 dollars) Inflation will increase. Employment will increase. Unemployment will decrease. Economic growth will decrease. MacBook Aire/content/8906847/viewContent/84833916/View YouTube a Amazon BandLab PipelineMT 7| Google Calendar OUTLOOK Agent Portal 1'I D2L 1 - Fiscal Policy Esther Emeka Emeji: Attempt 1 government spending increases. now would this affect the graph: LRAS1 Price level SRAS, (GDP deflator, 2009 - 100) P1 AD1 GDP1 GDP# Real GDP (trillions of 2009 dollars) The aggregate demand curve will shift to the right. O The short-run and long-run aggregate supply curves will shift to the right. The aggregate supply curve will shift to the right. The short-run aggregate supply curve will shift to the left. MacBook Air F4 DII F5 F8Homework 11 - Fiscal Policy - P x HIST 2010 Final Exam Flashcar x + d21/le/content/8906847/viewContent/84833916/View Hulu YouTube a Amazon BandLab PipelineMT [7 Google Calendar OUTLOOK Agent Portal 19I D2L 11 - Fiscal Policy Esther Emeka Emeji: Attempt 1 Question 9 (1 point) Consider the market for money illustrated in the figure below. What is the effect of a decrease in government spending on interest rates? MS1 Interest Rate, i MD M Quantity of Money. M (billions of dollars) Interest rates may increase or decrease. Interest rates will remain unchanged. Interest rates will decrease. Interest rates will increase. Question 10 (1 mint) MacBook AirYouTube a Amazon BandLab PipelineMT [7 Google Calendar OUTLOOK @ Agent Portal I D2L - Fiscal Policy Esther Emeka Emeji: Attempt 1 Question 14 (1 point) Consider the economy represented by the aggregate supply-aggregate demand graph below, which is initially at a short-run equilibrium at point A. Suppose taxes increase. How would this affect the graph? LRAS1 Price level SRASI (GDP deflator, 2009 - 100) A P1 ADI GDP* GDP1 Real GDP (trillions of 2009 dollars) Real GDP will decrease. Potential GDP will decrease. MacBook Air DII F3 F4 F5 F8 F9ulu YouTube Amazon BandLab PipelineMT |7 Google Calendar OUTLOOK Agent Portal 181 D2L 1 - Fiscal Policy Esther Emeka Emeji: Attempt 1 Question 10 (1 point) Consider the economy represented by the aggregate supply-aggregate demand graph below, which is initially at a short-run equilibrium at point A. Suppose taxes decrease. How would this affect the economy? LRAS1 Price level SRAS1 (GDP deflator, 2009 = 100) P1 ADI GDP1 GDP* Real GDP (trillions of 2009 dollars) Unemployment will increase. Economic growth will decrease. MacBook Air F3 DII F4 F5 F6 F7 F8 F9mework 11 - Fiscal Policy - P x HIST 2010 Final Exam Flashcar 1/le/content/8906847/viewContent/84833916/View ulu YouTube Amazon BandLab PipelineMT 7 Google Calendar 0 OUTLOOK Agent Portal 1.I D2L 1 - Fiscal Policy Esther Emeka Emeji: Attempt 1 Consider the market for money illustrated in the figure below. What is the effect of an increase in taxes on the graph? MSI Interest Rate, i MD: MI Quantity of Money, M (billions of dollars) The money demand curve will shift to the right. The money demand curve will shift to the left. MacBook Air833916/View Youtube a Amazon BandLab PipelineMT [7 Google Calendar OUTLOOK @ Agent Portal 1NI D2L 1 - Fiscal Policy Esther Emeka Emeji: Attempt 1 graph: LRAS, SRASI Price level GDP deflator, 2009 = 100) P2 B AD2 ADI GDP, GDP Real GDP (trillions of 2009 dollars) Crowding out will shift the new aggregate demand curve back to the left. Crowding out will shift the short-run aggregate supply curve to the left. Crowding out will shift the short-run aggregate supply curve and the long-run aggregate supply curve to the left. Crowding out will shift the new aggregate demand curve further to the right. MacBook Air II F3 F4 F5e/content YouTube a Amazon ( BandLab PipelineMT|7 Google Calendar @ OUTLOOK @ Agent Portal 1.I D2L 1 - Fiscal Policy Esther Emeka Emeji: Attempt 1 Question 12 (1 point) Consider the economy represented by the aggregate supply-aggregate demand graph below, which is initially at a short-run equilibrium at point A. Suppose government spending increases. How would this affect the graph? LRAS1 Price level SRASI (GDP deflator, 2009 = 100) P1 AD1 GDP1 GDP* Real GDP (trillions of 2009 dollars) The aggregate demand curve will shift to the right. The short-run and long-run aggregate supply curves will shift to the right. MacBook Air F3 898 F4 F5 F6 F7 F8 F9YouTube Amazon BandLab PipelineMT 7 Google Calendar OUTLOOK Agent Portal 1 D2L 1 - Fiscal Policy Esther Emeka Emeji: Attempt 1 increase. How would this affect the graph? LRAS1 Price level SRAS1 (GDP deflator, 2009 = 100) A P1 AD1 GDP* GDP1 Real GDP (trillions of 2009 dollars) Real GDP will decrease. Potential GDP will decrease. Real GDP and potential GDP will decrease. Real GDP and potential GDP will remain unchanged. MacBook Air F3 F4 F5 F8 DDlu Youtube a Amazon BandLab PipelineMT 7 Google Calendar | OUTLOOK @ Agent Portal 121 D2L 1 - Fiscal Policy Esther Emeka Emeji: Attempt 1 policy be usea to improve the economy? LRAS1 Price level SRAS1 (GDP deflator, 2009 = 100) PI AD1 GDP GDP Real GDP (trillions of 2009 dollars) Expansionary fiscal policy could be used to increase GDP to its potential. Expansionary fiscal policy could be used to decrease prices. Contractionary fiscal policy could be used to increase economic growth. Contractionary fiscal policy could be used to lower unemployment. Question 16 (1 point) MacBook Air F3 F4 F5 F6 F7 F8 F91 Homework 11 - Fiscal Policy - P x HIST 2010 Final Exam Flashcar x + su.edu/d21/le/content/8906847/viewContent/84833916/View ix h Hulu Youtube e a Amazon BandLab PipelineMT 7 Google Calendar . OUTLOOK Agent Portal 121 D2L ork 11 - Fiscal Policy 0:00 Esther Emeka Emeji: Attempt 1 MS1 Interest Rate, i 11 MD1 M Quantity of Money, M (billions of dollars) The money supply curve will shift to the left. The money supply curve will shift to the right. The money demand curve will shift to the left. The money demand curve will shift to the right. MacBook AirHulu YouTube Amazon BandLab PipelineMT 7 Google Calendar OUTLOOK @ Agent Portal I D2L 11 - Fiscal Policy Esther Emeka Emeji: Attempt 1 Question 19 (1 point) During the 2020 campaign, Joe Biden proposed raising income taxes on those earning more than $400,000 per year and raising corporate taxes from about 21 percent to 28 percent. Consider the aggregate demand-aggregate supply diagram below, which represents the macroeconomy. Suppose the market is initially at an equilibrium at point A. What effect will a tax increase have on this graph? LRAS, SRASI Price level (GDP deflator, 2009 - 100) Pi MacBook Air 30 F3 F4 II F5 F6 F8Homework 11 - Fiscal Policy - P x Q HIST 2010 Final Exam Flashcar x + d21/le/content/8906847/viewContent/84833916/View Hulu YouTube a Amazon BandLab PipelineMT [7 Google Calendar OUTLOOK Agent Portal I D2L 11 - Fiscal Policy Esther Emeka Emeji: Attempt 1 Question 8 (1 point) Consider the market for money illustrated in the figure below. What is the effect of an increase in government spending on the graph below? MS1 Interest Rate, i MD1 Mi Quantity of Money, M (billions of dollars) The money supply curve will shift to the left. MacBook Air1 - Fiscal Policy Esther Emeka Emeji: Attempt 1 Question 11 (1 point) Consider the economy represented by the aggregate supply-aggregate demand graph below, which is initially at a short-run equilibrium at point A. Suppose government spending decreases. How would this affect the graph? LRASI Price level SRASI (GDP deflator, 2009 = 100) A P1 AD1 GDP* GDP1 Real GDP (trillions of 2009 dollars) Real GDP will decrease. MacBook Air F3 080 F4 F5 F6 F7 F8 F9lu YouTube Amazon BandLab PipelineMT 7 Google Calendar OUTLOOK @ Agent Portal 121 D2L 1 - Fiscal Policy Esther Emeka Emeji: Attempt 1 (GDP deflator, 2009 = 100) PI A K ADI GDP, GDP* Real GDP (trillions of 2009 dollars) Employment will increase. The rate of inflation will decrease. The rate of economic growth will increase. Prices will increase. MacBook Air F4 F5 DI F6 F7 F8 F9Hulu Youtube a Amazon ( BandLab PipelineMT|7 Google Calendar | OUTLOOK @ Agent Portal I D2L 11 - Fiscal Policy Esther Emeka Emeji: Attempt 1 Consider the aggregate demand-aggregate supply diagram below, which represents the macroeconomy. Suppose the market is initially at an equilibrium at point A. What effect will a tax increase have on this graph? LRASI SRAS1 Price level (GDP deflator, 2009 - 100) P1 AD1 GDP, GDP* Real GDP (trillions of 2009 dollars) MacBook Air 50 F3 F4 F5 DIIwork 11 - Fiscal Policy - F X HIST 2010 Final Exam Flashcar content/8906847/viewContent/84833916/View YouTube Amazon BandLab PipelineMT 7| Google Calendar OUTLOOK Agent Portal LI DZL VI Essay Guid - Fiscal Policy Esther Emeka Emeji: Attempt 1 Question 7 (1 point) Consider the market for money illustrated in the figure below. What is the effect of a decrease in taxes on the graph below? MS Interest Rate, i MD M Quantity of Money, M (billions of dollars) The money supply curve will shift to the left. MacBook Air 30 FS 000 000 F4 F5 F6 DII F7 F8 F9 F10YouTube a Amazon BandLab PipelineMT 7 Google Calendar OUTLOOK Agent Portal Il D2L 1 - Fiscal Policy Esther Emeka Emeji: Attempt 1 Question 15 (1 point) Consider the economy represented by the aggregate supply-aggregate demand graph below, which is initially at a short-run equilibrium at point A. How could fiscal policy be used to improve the economy? LRAS1 Price level SRAS1 (GDP deflator, 2009 = 100) AD1 GDP1 GDP* Real GDP (trillions of 2009 dollars) Expansionary fiscal policy could be used to increase GDP to its potential. Expansionary fiscal policy could be used to decrease prices. MacBook Air F3 000 DII F4 F5 F6 F7 F8 F9du/d21/le/content/8906847/viewContent/84833916/View Hulu Youtube |Amazon BandLab PipelineMT [7 Google Calendar OUTLOOK Agent Portal 1 D2L k 11 - Fiscal Policy Esther Emeka Emeji: Attempt 1 Question 1 (1 point) What effect will debt likely have on long-run economic growth in the U.S.? Debt will increase economic growth by making exports cheaper. Debt will reduce economic growth by discouraging saving by households. Debt will reduce economic growth by crowding out private investment. Debt will increase economic growth by reducing infrastructure. Question 2 (1 point) In what way is fiscal policy limited in practice? Fiscal policy is limited by legislative delay. Fiscal policy is limited by implementation delay. Fiscal policy is limited by economic data being released with a lag. Fiscal policy is limited by the liquidity trap. Fiscal policy is limited by banks not loaning out excess reserves. Fiscal policy is limited by investment spending crowding out government revenue. MacBook Air 20 F3 000 F4 F5 F6 F7 F8 FOulu YouTube a Amazon () BandLab PipelineMT |7 Google Calendar OUTLOOK @ Agent Portal Ni D2L L1 - Fiscal Policy Esther Emeka Emeji: Attempt 1 (GDP deflator, 2009 = 100) PI A AD1 GDP, GDP* Real GDP (trillions of 2009 dollars) The short-run aggregate supply curve will shift to the left. The aggregate demand curve will shift to the right. The aggregate demand curve will shift to the left. The long-run aggregate supply curve will shift to the left. MacBook Air F4 F5 DII F6 F7 F8 F9Homework 11 - Fiscal Policy - F X HIST 2010 Final Exam Flashcar x tsu.edu/d21/le/content/8906847/viewContent/84833916/View flix h Hulu YouTube Amazon BandLab PipelineMT|7 Google Calendar O OUTLOOK Agent Portal I D2L DP Essay work 11 - Fiscal Policy :00:00 Esther Emeka Emeji: Attempt 1 Question 3 (1 point) 3 Consider the U.S.'s government deficit. Recently (perhaps excluding 2020 and 2021 and government spending in response to the COVID pandemic those years), what percentage of GDP is the U.S.'s deficit typically? 6 About 5 percent of GDP. 9 About 200 percent of GDP. O About 100 percent of GDP. 12 About 25 percent of GDP. 15 Question 4 (1 point) Suppose that real GDP is currently $19.9 trillion, potential GDP is $23.9 trillion, the government purchases multiplier is 1.0, and the tax multiplier is -1.4. Holding other factors (such as prices 18 and interest rates) constant, how will government purchases (G) need to change to bring the economy to equilibrium at potential GDP? Provide your answer in dollars measured in trillions rounded to two decimal places. Use a negative sign "-" for negative changes. Do not include any symbols, such as "$," "=," "%, " or "," in your answer. Your Answer: MacBook Air 20 F3 000 000 F4 F5 F6 F7 F8 F9 F10 $