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please help me answer these three multiple choice questions Question 11 Not yet answered Marked out of 1 P Flag question Income and output's response
please help me answer these three multiple choice questions
Question 11 Not yet answered Marked out of 1 P Flag question Income and output's response to expansionary fiscal policy is usually less in the IS-LM model than in the Keynesian-cross model. The reason for this discrepancy is that the Keynesian-cross model assumes that Select one: a. investment is not affected by the interest rate, whereas in the IS-LM model expansionary fiscal policy raises the interest rate and crowds out investment b. investment is not affected by the interest rate, whereas in the IS-LM model expansionary fiscal policy lowers the interest rate and crowds out investment C. investment is autonomous, whereas in the IS-LM model expansionary fiscal policy encourages higher investment, which raises the interest rate d. the price level is fixed, whereas in the IS- LM model it is allowed to vary. Question 12 Not yet answered Marked out of 1 P Flag question The LM curve has a Select one: a. positive slope showing that the money market is in equilibrium at a higher interest rate when national income is higher. b. negative slope showing that the money market is in equilibrium at a lower interest rate when national income is higher. c. positive slope showing that the money supply is positively related to national income. d. negative slope showing that the money supply is negatively related to national income. Question 13 Not yet answered Marked out of 1 Flag question LagardeVille is characterised by the AD equation P = 280 -0.05Y, SRAS equation P = 100 and LRAS equation Y* = 4 000. According to the AD-AS model, this economy currently has a(n) In the absence of any change in government policy, the long-run equilibrium price level in this economy will be and the output level will be 4 000. gap of size Select one: a. recessionary; 400; 80 b. expansionary: 400; 80 c. recessionary; 3 600; 120 d. expansionary; 3 600; 120Step by Step Solution
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