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June 7th, 2006

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In the aggregate-demand/aggregate-supply model, an increase in taxes causes ____ to ____ in the short run.?

In the aggregate-demand/aggregate-supply model, an increase in taxes causes ____ to ____ in the short run.
output; increase
output; decline
output; be unchanged
government spending; increase

n the aggregate-demand/aggregate-supply model, an increase in taxes causes ____ to ____ in the long run.
Answer
output; increase
output; decrease
the price level; increase
the price level; decrease

In the aggregate-demand/aggregate-supply model, an increase in the expected price level causes ____ to ____ in the short run.
Answer
output; increase
output; be unchanged
the price level; increase
the price level; decrease

The economy is overheating, with output above its full-employment level. To return the economy to long-run equilibrium, the Fed could use ____ policy, which would cause the price level to ____.
Answer
expansionary; increase
expansionary; decline
contractionary; decline
contractionary; increase

any help on these would be greatly appreciated!

The aggregate production function shows that the quantity of real GDP (Y ) supplied depends on the quantity of labor (L ), the quantity of capital (K ), and the state of technology.

http://facstaff.uww.edu/ahmady/courses/econ202/ps/sg6.pdf

Hope that you find the above enclosed information useful. 10/14/2012

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