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Suppose the central bank wants to cool down the economy to bring inflation under control. The AE = 5 + 0.8Y and the central bank
Suppose the central bank wants to cool down the economy to bring inflation under control. The AE = 5 + 0.8Y and the central bank wants to decrease GDP by 5 trillion. How much should the central bank make autonomous spending fall? X by 5 trillion Your answer B by 2.5 trillion by 1 trillion Correct answer D by 25 trillion E by 9 trillionSuppose that the Wall Street Journal reads: "the U.S. GDP has gone up this quarter". Then export must have increased. X True Your answer False Correct answerIn country X, nominal GDP went up by 3% from last year, the price level of goods went up by 5%, and the population did not change. Comparing this year to last year, we can say that real GDP and real GDP per capita (real GDP divided by population) . A increased; increased B increased; decreased C increased; did not change D decreased; increased \\/ decreased; decreased Correct answer X decreased; did not change Your
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