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 598 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?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Did you know?

About 600,000 particles of skin are shed every hour by each human. If you live to age 70 years, you have shed 105 pounds of dead skin.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

For a complete list of videos, visit our video library