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 568 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?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

There are over 65,000 known species of protozoa. About 10,000 species are parasitic.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

For a complete list of videos, visit our video library