Exhibit 9-8 Keynesian aggregate expenditures model
?
In Exhibit 9-8, an increase in aggregate expenditures causes:
A. a movement down the aggregate demand curve from equilibrium real GDP $600 to equilibrium real GDP $1,000.
B. a movement up the aggregate demand curve from equilibrium real GDP $1,200 to equilibrium real GDP $1,000.
C. a shift of the aggregate demand curve to the right, causing equilibrium real GDP to increase from $600 to $1,000.
D. a shift of the aggregate demand curve to the left, causing equilibrium real GDP to decrease from $1,200 to $1,000.
Answer: C
You might also like to view...
What would likely happen to the long-run aggregate supply curve if the U.S. federal government increases marginal tax rates on wages?
A) The LRAS curve would remain stable while the AD curve would shift leftward. B) The LRAS curve would remain stable while the AD curve would shift rightward. C) The LRAS curve would shift leftward. D) The LRAS curve would shift rightward.
The labor demand and labor supply schedules are given in the table above. If a minimum wage of $9 per hour is imposed,
A) a surplus of 300 workers occurs. B) a shortage of 300 workers occurs. C) there is no surplus or shortage of workers. D) the quantity demanded is 1,000 workers. E) there is unemployment of 700 workers.
From 1990-2014, productivity growth in the United States was ________ the growth rates of other high-income countries
A) greater than B) equal to C) greater than for the first 15 years, then less than D) less than
If the nominal interest rate decreases:
A. the velocity of money should increase. B. the cost of holding money increases. C. the cost of holding money decreases. D. the cost of holding money increases and the velocity of money should decrease.