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

Author Question: A reduction in business expectations, combined with the imposition of new tariffs by major trading ... (Read 14 times)

Mimi

  • Hero Member
  • *****
  • Posts: 542
on: Jun 30, 2018
A reduction in business expectations, combined with the imposition of new tariffs by major trading partners, would have what effect on aggregate demand?
 a. AD would increase.
 b. AD would decrease.
 c. AD would stay the same.
 d. AD could either increase or decrease, depending on which change was of a greater magnitude.

Question 2

Assume that potential GDP is 200 billion and the multiplier equals 5 . The recessionary gap is 10 billion. What is the actual level of equilibrium income?
 a. 200 billion
  b. 150 billion
  c. 100 billion
  d. 80 billion
  e. 50 billion


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

gasdhashg

  • Sr. Member
  • ****
  • Posts: 335
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

b


Mimi

  • Member
  • Posts: 542
Reply 2 on: Jun 30, 2018
Wow, this really help

essyface1

  • Member
  • Posts: 347
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

Parkinson's disease is both chronic and progressive. This means that it persists over a long period of time and that its symptoms grow worse over time.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

The lymphatic system. Lymphatic vessels, major lymph nodes, and lymphatic organs. The direction of l The lymphatic system. Lymphatic vessels, major lymph nodes, and lymphatic organs. The direction of l
Rhombus major Rhombus major
Basic Food Groups and Their Major Nutrients (Continued) Basic Food Groups and Their Major Nutrients (Continued)
Legal Environment of Business: Online Commerce, Ethics, and Global Issues (Cheeseman) Legal Environment of Business: Online Commerce, Ethics, and Global Issues (Cheeseman)
Business Analytics, 2nd Edition Business Analytics, 2nd Edition
Major Structures of the Ear Major Structures of the Ear
Video: Normal and abnormal blood pH

For a complete list of videos, visit our video library