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Author Question: The adverse impact of a negative aggregate demand shock is reduced when the government does not ... (Read 58 times)

Mr3Hunna

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on: Apr 19, 2019

Question 1

Without targeting the deficit, which of the following is likely to occur after a negative aggregate demand shock?


◦ Y↓ ⇒ T↓ ⇒ deficit↑ ⇒ G↓ ⇒ AD↑ ⇒ Y↑
◦ Y↓ ⇒ T↓ ⇒ deficit↑
◦ Y↓ ⇒ T↓ ⇒ deficit↑ ⇒ G↓ ⇒ AD↓ ⇒ Y↓
◦ Y↓ ⇒ T↓ ⇒ deficit↓

Question 2

The adverse impact of a negative aggregate demand shock is reduced when the government does not target the deficit because


◦ targeting the deficit causes further negative aggregate demand shocks.
◦ negative aggregate demand shocks do not affect the deficit.
◦ the economy is always producing potential output.
◦ not targeting the deficit causes positive aggregate demand shocks.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by Mr3Hunna on Apr 19, 2019

popopong

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Mr3Hunna

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Reply #2 on: Apr 19, 2019
Thanks


popopong

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Reply #3 on: Apr 19, 2019
Welcome :)


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