In the IS curve, consumption, government expenditure, exports, and imports are a function of O expectations. current output. O potential output. O the interest rate. O output fluctuations.
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- omics 1B Jan22 Y1 S2 The sale of South African Airways will affect which component of aggregate demand? O A. Consumption O B. Investment O C. Net Exports O D. Government Spending Previous page a Hi e Other AS W 人 XIWhich 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 confidenceestion The table gives aggregate demand and supply schedules for a hypothetical economy. Amount of Real Output Demanded Price Level (Index Amount oI Real Output Suppiied Value) $ 200 300 $ 500 300 250 450 400 200 400 500 150 300 600 100 200 If the amount of real output demanded at each price level falls by $200, this might have been caused by O A. a decrease in the personal income tax. O B. an increase in net exports. OC.a worsening of business expectations. O D. an increase in consumer wealth.
- 1Why low rate inflation is considered necessary for economic grwoth? Oa It does not affect the purchasing power of wages Ob. It indicates that the currency is in continuous demand by the people Oc taffects only the rich and not the poor Od itact as an incentive to boost in supply in the economy 2When the economy is in Keynesian macroeconomic equilibrium, planned investment is greater than actual investment. O a False O b. True 3Government fixes the floor and ceiling price which will not allow the producers to increase the price on their wish, this is a type of. O a Physical control called price pegging O b. Monetary policy control measures O. Physical control called price tagging Od. Fiscal policy control measures O e None 4Rising output coupled with falling prices is called stagflation O a. False O b. True 5The Value of marginal propensity to consume lies O a. O to 1 O b. Less than zero Oc -1 to 1 Od. Between O to 1 6The Central Bank way to control inflation is Oa Monetary policy…Which of the following is NOT a component of planned aggregate expenditure? Select one: O a. Planned investment O b. Government purchases O c. Transfer payments d. Net exports O e. ConsumptionIf 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
- If a $5,000 increase in income leads to additional savings of $1,250, the marginal propensity to consume is 1.33 0.25 4 O 0.75What is your prediction for the economy when you observe that inventories are taking an unplanned dive? You predict that there will be OA. an expansion O B. a trough O C. a business cycle O D. a recession2. The model of aggregate demand and supply represents O A. the relationship between the real Gross Domestic Product and the overall price level O B. the changes in Gross Domestic Product over time O C. the relationship between the inflation and unemployment rates O D. the changes in the price level over time
- Taxes affect aggregate demand O indirectly by changing consumption. O directly through government spending. O indirectly by changing net exports. indirectly by changing investment spending.Consider the impact of a cut in the interest rate set by the central bank (the "policy rate"), which causes banks to lower interest rates for both borrowers and lenders. Select one or more: U a. Borrowers like Julia will definitely be better off O b. Borrowers like Julia will definitely increase their current consumption O c. If Marco is a saver (not an investor) he will definitely be worse off O d. If Marco is a saver he will definitely decrease his consumptionSuppose Amal calculates.9 her permanent income by adaptive expectations. Year 2020 Amal's permanent income was 38,000, and year 2021 actual income is 41,000. Assume that, long-run marginal to consume is 0.90 and short-run tmarginal propensity to consume is 0 28. What is her consumption ?expenditure year 2021
