Question
In: Economics
Explain whether each of the following events shifts the aggregate-demand curve. For each event that does...
Explain whether each of the following events shifts the aggregate-demand curve. For each event that does shift AD curve explain the short-run effects on output and the price level (note: use AD-SRAS diagrams).
a) (5 points) Government conducts expansionary fiscal policy.
b) (5 points) Central bank increases money supply.
c) (10 points) Central bank increases money supply, while government increases taxes.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
) Explain whether each of the following events shifts the short-run aggregate supply curve, the aggregate...
) Explain whether each of the following events shifts the
short-run aggregate supply curve, the aggregate demand curve, both,
or neither. For each event that does shift a curve draw a diagram
to illustrate the effect on the economy (you don’t have to send me
the graphs, but you should draw them on scratch paper for
practice).
Households decide to save a larger share of their income.
Florida orange groves suffer a prolonged period of
below-freezing temperatures.
Increased job opportunities...
Briefly explain whether each of the following shifts the aggregate demand curve to the right or...
Briefly explain whether each of the following shifts the
aggregate demand curve to the right or to the left. Briefly explain
your responses
The Federal Reserve sells $10 billion of US Treasury
securities.
The federal government launches a massive program to rebuild
the country’s highways.
The dollar appreciates relative to the currencies of its major
trading partners.
11. Explain whether each of the following events and policies will affect the aggregate demand curve...
11. Explain whether each of the following events and policies
will affect the aggregate demand curve or the short?run aggregate
supply curve, and state what will happen to the price level and
real GDP. a) Oil prices rise b) The Fed sells bonds c) Government
purchases increase d) Federal taxes increase e) The government
slashes transfer payment spending f) Oil prices fall. To the Tutor:
Please be clear and explanatory. Will be appreciated. Thank
you.
the aggregate demand curve shifts in when?
the
aggregate demand curve shifts in when?
An increase in investment creates a ______ ______ in aggregate demand, the aggregate demand curve shifts...
An increase in investment creates a ______ ______ in aggregate
demand, the aggregate demand curve shifts ________ potentially
brining ________ phase of the business cycle.
larger; increase; rightward; expansion
larger; decreases; leftward; recession
smaller; increases; rightward; expansion
smaller; decreases; leftward; recession
1. Explain how each of the following events would affect the aggregate demand curve. a. Lower...
1. Explain how each of the following events would affect the
aggregate demand curve.
a. Lower interest rates (5 points)
b. A decrease in net exports (5 points)
c. A decrease in the price level (5 points)
d. Slower income growth in other countries (5 points)
e. A decrease in imports (5 points)
2. Explain how each of the following events would affect the
long-run aggregate supply curve.
a. A lower price level (5 points)
b. A decrease in the...
For each of the following, explain the impact of each event on the aggregate demand (AD),...
For each of the following, explain the impact of each event on
the aggregate demand (AD), short run aggregate supply (SRAS) and
long run aggregate supply (LRAS) of Malaysia:
(i) It is announced that Malaysia has just entered into a
recession.
(ii) The price of petroleum decreases by another 60%.
(iii) Political and social unrest in Indonesia have caused many
foreign firms to relocate their business to Malaysia.
b) (i) State the endogenous and exogenous factors of economic
growth.
(ii)...
For each of the following, explain the impact of each event on the aggregate demand (AD),...
For each of the following, explain the impact of each
event on the aggregate demand (AD), short run aggregate supply
(SRAS) and long run aggregate supply (LRAS) of
Malaysia:
(i) It is announced that Malaysia has just entered into
a recession.
(ii) The price of petroleum decreases by another
60%.
(iii) Political and social unrest in Indonesia have
caused many foreign firms to relocate their business to
Malaysia.
b) (i) State the endogenous and exogenous factors of
economic growth.
(ii)...
State and Local Governments and Aggregate Demand. The aggregate demand curve shifts to the right if...
State and Local Governments and Aggregate
Demand. The aggregate demand curve shifts to the right
if
A.
the money supply decreases
B.
the price level increases
C.
taxes increase
D.
state governments increase their spending
Determine whether each of the following would cause a shift of the aggregate demand curve, a...
Determine whether each of the following would cause a shift of
the aggregate demand curve, a shift of the aggregate supply curve,
a shift in neither curve, or a shift in both curves. If a shift is
caused, indicate which curve shifts, and in which direction it
shifts. What happens to aggregate output and the price level in
each case?
1] The price level changes.
2] Consumer confidence increases.
3] The supply of resources decreases.
4] The wage rate decreases.
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