Refer to the information provided in Figure 32.2 below to answer ...

[jCorn1234]

Question 1

According to the Lucas supply function, if the expected price level is larger than the actual price level

◦ real output increases.
◦ real output decreases.
◦ nominal output increases.
◦ nominal output decreases.

Question 2

Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.





Refer to Figure 32.2. According to Keynes, an increase in government spending or an increase in money supply will

◦ shift 
AS
₁ to the right.
◦ shift 
LRAS to the right.
◦ shift 
AD
₁ to the right.
◦ shift 
AD
₁ to the left.

[sultana.d]

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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.

Answer Preview

Only 49% of students answer this correctly

[danielfitts88]

Question 1

Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.





Refer to Figure 32.2. According to the monetarists, a recession can be caused when

◦ AD
₁ shifts to the right.
◦ AD
₁ shifts to the left.
◦ AS
₁ shifts to the left.
◦ LRAS shifts to the left.

Question 2

Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.





Refer to Figure 32.2. According to the new classical economists, under rational expectations an expected increase in government spending would

◦ shift 
AS
₁ to the right.
◦ shift 
AD
₁ to the right.
◦ shift 
AD
₁ to the left.
◦ None of these.

[vkodali]

Answer 1

AD
₁ shifts to the left.

Answer 2

None of these.

[danielfitts88]

Thank you!

[vkodali]

Always glad to help...

[student77]

Question 1

Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.





Refer to Figure 32.2. According to the new classical economists, under rational expectations an expected decrease in government spending would

◦ shift 
AS
₁ to the right.
◦ shift 
AD
₁ to the right.
◦ shift 
AD
₁ to the left.
◦ not change 
AD and 
AS.

Question 2

Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.





Refer to Figure 32.2. According to the new classical economists, under rational expectations an expected decrease in taxes would

◦ shift 
AS
₁ to the right.
◦ shift 
AD
₁ to the right.
◦ shift 
AD
₁ to the left.
◦ not change 
AD or 
AS.

[janieazgirl]

Answer 1

not change 
AD and 
AS.

Answer 2

not change 
AD or 
AS.

[Evvie72]

Question 1

Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.





Refer to Figure 32.2. According to Keynes, an expansionary monetary policy in the long run and after all the adjustments have been made

◦ does not increase equilibrium output.
◦ increases equilibrium output above 
Y
₁.
◦ decreases equilibrium output below 
Y
₁.
◦ increases equilibrium output above 
Y
₁ and decreases the price level below 
P
₁.

Question 2

Refer to the information provided in Figure 32.2 below to answer the question(s) that follow.





Refer to Figure 32.2. According to monetarists, an expansionary fiscal policy in the long run and after all the adjustments have been made

◦ does not increase equilibrium output or the price level.
◦ increases equilibrium output above 
Y
₁, but does not change the price level.
◦ increases the price level above 
P
₁, but does not change equilibrium output.
◦ increases equilibrium output above 
Y
₁ and decreases the price level below 
P
₁.

[Benayers]

Answer 1

increases equilibrium output above 
Y
₁.

Answer 2

increases the price level above 
P
₁, but does not change equilibrium output.