This topic contains a solution. Click here to go to the answer

Author Question: In the short run, a decrease in aggregate demand will lead to A) no change in the price level and ... (Read 541 times)

karateprodigy

  • Hero Member
  • *****
  • Posts: 550
In the short run, a decrease in aggregate demand will lead to
 
  A) no change in the price level and a decrease in real GDP.
  B) an increase in the price level and a decrease in real GDP.
  C) a decrease in the price level and an increase in real GDP.
  D) an increase in the price level and an increase in real GDP.
  E) a decrease in the price level and an increase in the unemployment rate.

Question 2

If there is no Ricardo-Barro effect, an increase in the government budget surplus will
 
  A) lower the real interest rate.
  B) decrease the demand for loanable funds.
  C) raise the real interest rate.
  D) decrease the supply of loanable funds.
  E) not change the demand for loanable funds, the supply of loanable funds, or the real interest rate.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Zack0mack0101@yahoo.com

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

E

Answer to Question 2

A





 

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

For a complete list of videos, visit our video library