Please I need Help Real Domestic Output In the above diagram, the economy\'s imm

Question

Please I need Help

Real Domestic Output In the above diagram, the economy's immediate-short-run aggregate supply curve is shown by line: 1. 2. 3. 4. Suppose that the price level is constant and that investment decreases sharply. This would cause a fall in output that would be equal to a fraction of the initial change in investment spending based on the multiplier effect. the initial change in investment spending based on the multiplier effect. a multiple of the initial change in investment spending based on the multiplier effect. the rise in government spending to compensate. Consider the following statement: "A change in the price level shifts the aggregate expenditures curve but not the aggregate demand curve." This statement makes a distinction between a movement along the aggregate demand curve and a shift in the aggregate demand curve. makes a distinction between a change in price caused by changes in aggregate supply and a shift in the aggregate demand curve. is accurate only if aggregate expenditures equal aggregate demand. is false because a change in the price level can do both. Tax increases and government spending cuts by state governments during recessions often reduce the expansionary impact of fiscal policy by the Federal government. True False

Explanation / Answer

4

a multiple of initial change in investment spending based on multiplier effwect

makes a distinction between a movement along aggregate demand curve and a shift in aggregate demand curve

true

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---