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 47 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
Excellent

Sarahjh

  • Member
  • Posts: 370
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

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?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

Vaccines cause herd immunity. If the majority of people in a community have been vaccinated against a disease, an unvaccinated person is less likely to get the disease since others are less likely to become sick from it and spread the disease.

Major glands of the human endocrine system Major glands of the human endocrine system
Differentiation of Major Headache Types Differentiation of Major Headache Types
Major Wind Systems: Monsoons Major Wind Systems: Monsoons
Classification of Antidepressants: Treatment of Major Depressive Disorder Classification of Antidepressants: Treatment of Major Depressive Disorder
Major regulatory factors controlling pyruvate dehydrogenase and the citric acid cycle Major regulatory factors controlling pyruvate dehydrogenase and the citric acid cycle
Reduction of a ribonucleoside diphosphate by rNDP reductase Reduction of a ribonucleoside diphosphate by rNDP reductase
Video: Structures that affect circulation - heart and systolic/diastolic BP

For a complete list of videos, visit our video library