« previous next »

Author Question: A decrease in aggregate expenditure has what result on equilibrium GDP? A) Equilibrium GDP falls. ... (Read 107 times)

sam.t96

  • Hero Member
  • *****
  • Posts: 570
on: Jun 29, 2018
A decrease in aggregate expenditure has what result on equilibrium GDP?
 
  A) Equilibrium GDP falls.
  B) Equilibrium GDP rises.
  C) Equilibrium GDP is not affected by a decrease in aggregate expenditure.
  D) Equilibrium GDP may rise or fall depending on the size of the decrease in aggregate expenditure relative to the initial level of GDP.

Question 2

Refer to Figure 27-7. Given that the economy has moved from A to B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP?
 
  A) increase government spending B) contractionary fiscal policy
  C) increase taxes D) decrease interest rates


Anna

  • Sr. Member
  • ****
  • Posts: 343
Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

Though newer “smart” infusion pumps are increasingly becoming more sophisticated, they cannot prevent all programming and administration errors. Health care professionals that use smart infusion pumps must still practice the rights of medication administration and have other professionals double-check all high-risk infusions.

Did you know?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Unique communities may result from distinct environmental conditions. Unique communities may result from distinct environmental conditions.
Ectopic pregnancies. (a) An ectopic pregnancy may occur in any of the locations shown. Interstitial Ectopic pregnancies. (a) An ectopic pregnancy may occur in any of the locations shown. Interstitial
Drug tolerance: A shift in the dose-response curve to the right as a result of exposure to the drug. Drug tolerance: A shift in the dose-response curve to the right as a result of exposure to the drug.
A deficiency of linoleic acid can interfere with normal growth and result in inflammation A deficiency of linoleic acid can interfere with normal growth and result in inflammation
Cretinism can result in a child born to a mother who was iodine deficient during early pregnancy Cretinism can result in a child born to a mother who was iodine deficient during early pregnancy
The Hardy–Weinberg equilibrium for two autosomal alleles. The Hardy–Weinberg equilibrium for two autosomal alleles.
Video: Methods that regulate pH

For a complete list of videos, visit our video library