If investment decreases by $70 billion and the economy's MPC is 0.5, the aggregate demand curve will shift Multiple Cholce O leftward by $140 billion at each price level. rightward by $70 billion at each price level. rightward by $140 billion at each price level. O leftward by $35 billion at each price level.
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A: Answer: Option B. false
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A: here we find the correct option as follow;
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- Which of the following will NOT shift the ADT curve? O a. A rise in government spending O b. A rise in exports Ос. A rise in interest rates O d. A rise in consumer confidenceWhich of the following will NOT shift the ADTT curve? O a. A rise in consumer confidence O b. A rise in interest rates O c. A rise in government spending O d. A rise in exportsIf investment falls by $5 billion. The marginal propensity to consume is 0.75. So Real GDP O Increases by $20 billion O Increases by $40 billion O Decreases by $20 billion O Decreases by $25 billion Next « Previous N
- Imagine there is a consumption smoother (also known as a PIH consumer) who expectsto live for another 40 years and to work for another 30 years. They just learned thatthey will receive a permanent pay increase from their job of $800. How much extra dothey consume this year? What is their marginal propensity to consume?Equilibrium real GDP is $400 billion, the MPC = 0.9, and there are no income taxes or imports. Investment increases $40 billion. If the price level is constant, after the in be Select one: Oa. $600 billion. Ob. $800 billion. Oc $360 billion. O d. $440 billion.Which of the following policies will NOT shift the Aggregate Expenditure curve upward? Select one: O a. increasing autonomous taxes O b. decreasing autonomous taxes O c. increasing autonomous transfer payments O d. increasing government expenditures on goods and services
- The slope of the PE (planned expenditure) line is always 45 degrees the inverse of the spending (government purchases) multiplier O negative, since as the real interest rises, economic investment falls O MPCAssume an economy operates in the intermediaterange of its aggregate supply curve. State thedirection of shift for the aggregate demandor aggregate supply curve for each of thefollowing changes in conditions. What is theeffect on the price level? On real GDP? Onemployment?a. The price of crude oil rises significantly.b. Spending on national defense doubles.c. The costs of imported goods increase.d. An improvement in technology raises laborproductivity.If output is less than planned aggregate expenditure, there will be Lütfen birini seçin: O A. an unplanned increase in inventories O B. a planned decrease in inventories. O C. no change in inventories O D. a planned increase in inventories O E. an unplanned decrease in inventories
- Why is the aggregate demand curve downsloping? Specify how your explanation differs from the explanation for the downsloping demand curve for a single product. What role does the multiplier play in shifts of the aggregate demand curve?Assuming the equilibrium condition is Y = C+1. Suppose S = -600 + 0.4Y, and I = 800. If income is presently at $4500 we can say that, ceteris paribus, a. national income will decrease toward equilibrium b. consumption will decrease. O C. national income will rise toward equilibrium. O d. national income is in equilibrium.If investment increases by $15 billion and the economy’s MPC is 0.8 the aggregate demand curve will shift A.Leftward by $75 billion at school price level B .Leftward by $30 billion at each price level C. Rightward by $15 billion at each price level D. Rightward by $75 billion at each price level