This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In response to an increase in AD: a. The price level will increase more in the long run than in the ... (Read 44 times)

Engineer

  • Hero Member
  • *****
  • Posts: 527
on: Jun 30, 2018
In response to an increase in AD:
 a. The price level will increase more in the long run than in the short run.
 b. Real output will increase more in the long run than in the short run.
 c. Both the price level and real output will increase more in the long run than in the short run.
  d. Neither the price level nor real output will change in the long run.

Question 2

If the spending multiplier equals 6 and equilibrium real GDP is 32 billion below potential real GDP, then total planned expenditures need to decrease by approximately 5.33 billion to close the recessionary gap.
 a. True
  b. False
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

olivia_paige29

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

False


Engineer

  • Member
  • Posts: 527
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

ghepp

  • Member
  • Posts: 361
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Each year in the United States, there are approximately six million pregnancies. This means that at any one time, about 4% of women in the United States are pregnant.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Associative Long-Term Potentiation Associative Long-Term Potentiation
Having a time zone map located near the telephone will assist you when making long distance calls ou Having a time zone map located near the telephone will assist you when making long distance calls ou
Risk of Stroke and Heart Disease Increase with Increasing Blood Pressure Risk of Stroke and Heart Disease Increase with Increasing Blood Pressure
Projections of global temperature depend heavily on the level of future greenhouse gas emissions Projections of global temperature depend heavily on the level of future greenhouse gas emissions
Modern machinery has helped farmers increase yields Modern machinery has helped farmers increase yields
The retail price of a packaged CD is $60.00, which includes a tax of 4%. What is the actual ... The retail price of a packaged CD is $60.00, which includes a tax of 4%. What is the actual ...
Video: Osmosis - water transport

For a complete list of videos, visit our video library