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

Author Question: What is the key difference between the aggregate expenditure model and the aggregate ... (Read 76 times)

nummyann

  • Hero Member
  • *****
  • Posts: 576
What is the key difference between the aggregate expenditure model and the aggregate demand/aggregate supply model?
 
  A) The aggregate expenditure model examines monetary policy, whereas the aggregate demand/aggregate supply model does not.
  B) The aggregate demand/aggregate supply model assumes that the price level is fixed.
  C) The aggregate expenditure model assumes that real GDP is fixed.
  D) The aggregate expenditure model assumes that the price level is fixed.
  E) Monetary and real factors interact in the aggregate demand/aggregate supply model.

Question 2

The bias in the CPI affects government outlays because the overstatement of inflation
 
  A) means that tax receipts are less than what is needed to cover government outlays.
  B) decreases government outlays by more than what is justified.
  C) increases government outlays by more than what is justified.
  D) decreases social welfare benefits.
  E) increases fiscal pressure.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

trog

  • Sr. Member
  • ****
  • Posts: 343
Answer to Question 1

D

Answer to Question 2

C




nummyann

  • Member
  • Posts: 576
Reply 2 on: Jun 30, 2018
Excellent


ebonylittles

  • Member
  • Posts: 318
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

Though Candida and Aspergillus species are the most common fungal pathogens causing invasive fungal disease in the immunocompromised, infections due to previously uncommon hyaline and dematiaceous filamentous fungi are occurring more often today. Rare fungal infections, once accurately diagnosed, may require surgical debridement, immunotherapy, and newer antifungals used singly or in combination with older antifungals, on a case-by-case basis.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

For a complete list of videos, visit our video library