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Author Question: Refer to Figure 12-2.If the U.S. economy is currently at pointK, which of the following ... (Read 30 times)

jlmhmf

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on: Mar 16, 2019

Question 1

Figure 12-2











Refer to Figure 12-2.  If the U.S. economy is currently at point N, which of the following could cause it to move to point K?


◦ Households expect future income to decline.
◦ Household wealth rises.
◦ The firm's cash flow rises as profits rise.
◦ Government expenditures increase.

Question 2

Figure 12-2











Refer to Figure 12-2. If the U.S. economy is currently at point K, which of the following could cause it to move to point N?


◦ The price level in the United States rises relative to the price level in other countries.
◦ Congress passes investment tax incentives.
◦ The interest rate rises.
◦ Household wealth declines.
Macroeconomics ¦ Hubbard, O'Brien ¦ 6th Edition
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Marked as best answer by jlmhmf on Mar 16, 2019

shaquita

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Reply #1 on: Mar 16, 2019
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jlmhmf

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Reply 2 on: Mar 16, 2019
YES! Correct, THANKS for helping me on my review

samiel-sayed

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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