Question

In: Economics

1. An increase in the education level inside a nation would cause the: a. long-run aggregate...

1. An increase in the education level inside a nation would cause the:

a. long-run aggregate supply curve to shift to the right.

b. long-run aggregate supply curve to shift to the left.

c. short-run aggregate supply curve to shift to the left.

d. aggregate demand curve to shift to the right.

2. An example of a buyer in a financial market would be:

a. families buying new houses.

b. students saving for college.

c. corporations loaning money to other firm.

d. families putting money away for the future.

3. In the market for loanable funds, the supply curve:

a. represents savers.

b. is downward sloping.

c. reflects that more people will choose to save the lower is the interest rate.

d. is made up of people who want to borrow funds.

4. Mutual funds, pension plans, and life insurance policies:

a. are all forms of savings.

b. differ regarding when you can have access to the asset's worth.

c. all entrust a professional to decide which financial assets are the best for the saver to hold.

d. All of these are true.

5. In a closed economy, national savings is:

a. the sum of the savings of individuals and corporations plus the savings of the government.

b. the sum of public savings plus private savings.

c. equal to national investment.

d. All of these are true.

Expert Solution

Answer 1 Option A) Long run aggregate supply curve shift to the right.

An increase in the education level inside a nation would cause the long run aggregate supply curve shift to the right. The reason is that with increase in education employment, output will increase due to enhancement of human capital.

Answer 3) Option A) represents savers

In the market for loanable funds, the supply curve represents savers. The reason is that supply curve represent that consumers prefer to save more at high rate of interest rather than consuming.

Answer 4 ) Option D) All of the above

Mutual funds, pension plans, and life insurance policies are form of savings. They differ regarding when you can have access to the asset's worth. They all entrust a professional to decide which financial assets are the best for the saver to hold.

Answer 5) option D) All of the above

Investment is the purchase of new capital namely buildings , equipments. In the closed economy , they include

National saving is the sum of the savings of individuals and corporations plus the savings of the government.

National saving is the sum of public savings plus private savings.

National saving is equal to national investment

Rahul Sunny answered 7 months ago

1) For a fixed aggregate demand curve, an increase in long run aggregate supply will decrease...

1) For a fixed aggregate demand curve, an increase in long run aggregate supply will decrease prices. True False 2) An attempt to reduce current budget deficits could shift the aggregate demand curve left and cause a recession. True False 3) Contractionary fiscal policy is politically popular. False True 4) If aggregate demand increases for a given AS curve, prices will decrease False True 5) Republicans love using fiscal policy to stabilize the economy. False True

Describe whether the following changes cause the long-run aggregate supply curve to increase (shift right), decrease...

Describe whether the following changes cause the long-run aggregate supply curve to increase (shift right), decrease (shift left), or neither. (a) The price level increases. (b) The stock of capital in the economy increases. (c) Natural resources increase. (d) The price level decreases. (e) Firms and workers expect the price level to rise. (f) The number of workers in the labor force increases.

Which of the following would cause the aggregate price level to fall and the equilibrium level...

Which of the following would cause the aggregate price level to fall and the equilibrium level of real GDP to increase in the short run? Question 9 options: a) the short-run aggregate supply curve shifts left b) aggregate demand shifts left c) the short-run aggregate supply curve shifts right d) aggregate demand shifts right

1. Describe and briefly explain whether the following changes cause the short-run aggregate supply to increase,...

1. Describe and briefly explain whether the following changes cause the short-run aggregate supply to increase, decrease or neither: a. The price level increases b. Input prices decrease c. Firms and workers expect the price level to fall. d. The price level decreases e. New policies increase the cost for businesses of meeting government regulations. f. The number of workers in the labor force increases. 2. Describe and briefly explain whether the following changes cause the aggregate demand to increase,...

2. For each of the following, answer whether it would affect short-run aggregate supply, long-run aggregate...

2. For each of the following, answer whether it would affect short-run aggregate supply, long-run aggregate supply, both, or neither; and describe whether it would lead to an increase or a decrease. (a) Energy prices decrease (b) A new supply of natural resources is discovered (c) Firms and workers expect the price level to fall (d) New policies increase the cost of meeting new government regulations (e) The number of workers in the labor force increases

1. Using the aggregate demand (AD), the short-run aggregate supply (SRAS), and the long-run aggregate supply...

1. Using the aggregate demand (AD), the short-run aggregate supply (SRAS), and the long-run aggregate supply (LRAS) curves, briefly explain how an open market purchase will affect the equilibrium price level (P) and real output (Y) in the short run. Assume the economy is initially in a recession. 2. Using the quantity equation (the equation of exchange) briefly explain the quantity theory of money. Specifically, how the quantity theory of money explains why inflation occurs.

21. In the long run an increase in the saving rate a. doesn’t change the level...

21. In the long run an increase in the saving rate a. doesn’t change the level of productivity or income. b. raises the levels of both productivity and income. c. raises the level of productivity but not the level of income. d. raises the level of income but not the level of productivity. 22. Investment from abroad a. is a way for poor countries to learn the state-of-the-art technologies developed and used in richer countries. b. is viewed by economists...

Given a long-run aggregate supply curve, what would the aggregate demand curve illustrate? a. the price...

Given a long-run aggregate supply curve, what would the aggregate demand curve illustrate? a. the price level and the output level b. only the output level c. only the price level d. only the income level Other things constant, how would a smaller marginal propensity to save affect the marginal propensity to consume? a. The marginal propensity to consume would be negative. b. The marginal propensity to consume would remain the same. c. The marginal propensity to consume would become...

a) Explain how and why an increase in the level of savings affects the long-run growth...

a) Explain how and why an increase in the level of savings affects the long-run growth of real income. b) Explain the role of diminishing returns, and what this implies for relative growth rates across countries. c) Carefully describe and explain one government policy that could increase the long-run growth of real income. NO HANDWRITING PLEASE! Please provide the explanations and graphs in text/word formate. Thanks in advance.....

1. Explain why the long-run aggregate supply (LRAS) curve is vertical while the short-run aggregate supply...

1. Explain why the long-run aggregate supply (LRAS) curve is vertical while the short-run aggregate supply (SRAS) curve slope upwards. List and discuss briefly the variables that could cause the LRAS and the SRAS curves to shift. For each variable, identify whether an increase in that variable will cause the curves (LRAS and SRAS curves) to shift to the right or to the left. 2. What are the main roles of the Reserve Bank of Australia (RBA)? How does the...