In the Keynesian-cross model, actual expenditures differ from planned expenditures
by the amount of
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unplanned inventory investments
,In a small open economy with a fixed exchange rate, if the government imposes an
import quota, then net exports:
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increase, the money supply increases, and income increases.
A difference between the economic long run and the short run is that:
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demand can affect output and employment in the short run, whereas
supply is the ruling force in the long run.
At the equilibrium level of income:
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d.) all the above
a.) unintended inventory accumulation is equal to zero
b.) planned expenditure is equal to actual expenditure
c.) there is no tendency for GDP to change
One argument in favor of tax cuts over spending based fiscal stimulus is that
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, historically tax cuts have been more successful than spending based fiscal
stimulus
A fall in the interest rate motivates firms to increase investment spending, which drives
up
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total planned expenditure
Starting from a short-run equilibrium greater than the natural rate of output, as the
economy returns to a long-run equilibrium:
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output will decrease, but the price level will increase.
A decrease in taxes will sift the planned expenditure curve ____ and the IS curve to the
_____
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upward; right
Tax cuts do all of the following expect:
by the amount of
Give this one a try later!
unplanned inventory investments
,In a small open economy with a fixed exchange rate, if the government imposes an
import quota, then net exports:
Give this one a try later!
increase, the money supply increases, and income increases.
A difference between the economic long run and the short run is that:
Give this one a try later!
demand can affect output and employment in the short run, whereas
supply is the ruling force in the long run.
At the equilibrium level of income:
Give this one a try later!
d.) all the above
a.) unintended inventory accumulation is equal to zero
b.) planned expenditure is equal to actual expenditure
c.) there is no tendency for GDP to change
One argument in favor of tax cuts over spending based fiscal stimulus is that
Give this one a try later!
, historically tax cuts have been more successful than spending based fiscal
stimulus
A fall in the interest rate motivates firms to increase investment spending, which drives
up
Give this one a try later!
total planned expenditure
Starting from a short-run equilibrium greater than the natural rate of output, as the
economy returns to a long-run equilibrium:
Give this one a try later!
output will decrease, but the price level will increase.
A decrease in taxes will sift the planned expenditure curve ____ and the IS curve to the
_____
Give this one a try later!
upward; right
Tax cuts do all of the following expect:
