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Macroeconomics Long-run agregate supply Price Level Short-run sceregate supply P Aggregate demand Natural Rate Output Refer to graph 2. What happens if the economy is at its long run equilibrium and

Macroeconomics

Long-run agregate supply Price Level Short-run sceregate supply P Aggregate demand Natural Rate Output

Refer to graph 2. What happens if the economy is at its long run equilibrium and aggregate demand (AD) curve increases *

Contractionary gap

Inflationary gap

Recessionary gap

Expansionary gap

Refer to graph 2. If the economy is in long run equilibrium and aggregate demand (AD) curve increases. Which fiscal policy should the government undertake to move the economy back to its potential RGDP? *

Expansionary monetary policy

Expansionary fiscal policy

Contractionary fiscal policy

Contractionary monetary policy

Refer to graph 2. If the economy is in long run equilibrium and aggregate demand (AD) curve increases. What would be the effect of the fiscal policy undertaken by the government on aggregate demand curve and on the short run aggregate supply curve? *

AD shifts right, SRAS shifts right

AD shifts right, SRAS stays unchanged

AD shifts left, SRAS shifts right

AD shifts left, SRAS stays unchanged

Refer to graph 2. If the economy is in long run equilibrium and aggregate demand (AD) curve increases.What would be the effect of the fiscal policy used by the government on the output level, price level and unemployment rate? *

RGDP decreases, price level decreases and unemployment rate increases

RGDP decreases, price level increases and unemployment rate decreases

RGDP increases, price level increases and unemployment rate decreases

RGDP increases, price level decreases and unemployment rate decreases

A fiscal policy *

Is performed by the central bank

Effective in the short run

Depends on the interest rate in the market

None of the above

Apr 15 2021 View more View Less

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