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

[Evvie72]

TY

[Benayers]

You're welcome

[tiffannnnyyyyyy]

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, a(n) ________ will shift 
AD
₁ to the right.

◦ increase in taxes
◦ decrease in the money supply
◦ increase in government spending
◦ All of these

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 monetarists, ________ can be caused when 
AD
₁ shifts to the left.

◦ an increase in money demand
◦ a recession
◦ inflation
◦ stagflation

[karmakat49]

Answer 1

increase in government spending

Answer 2

a recession

[CharlieWard]

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 ________ economists, under rational expectations an expected increase in government spending would not change 
AD or 
AS.

◦ Keynesian
◦ the new classical
◦ monetarist
◦ None of these

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 ________ economists, under rational expectations an expected decrease in government spending would not change 
AD or 
AS.

◦ Keynesian
◦ the new classical
◦ monetarist
◦ None of these

[anoriega3]

Answer 1

the new classical

Answer 2

the new classical

[CharlieWard]

Thank you!

[anoriega3]

Always glad to help...

[Brittanyd9008]

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 ________ economists, under rational expectations an expected decrease in taxes would not change 
AD or 
AS.

◦ Keynesian
◦ the new classical
◦ monetarist
◦ None of these

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 ________, a(n) ________ monetary policy in the short run and after all the adjustments have been made increases equilibrium output above 
Y
₁.

◦ Keynes; contractionary
◦ Keynes; expansionary
◦ the new classicals; contractionary
◦ the new classicals; expansionary

[lgoldst9]

Answer 1

the new classical

Answer 2

Keynes; expansionary