Macroeconomics
21st Edition
ISBN: 9781259915673
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 12.7, Problem 1QQ
To determine
Impact of decreasing price on interest rate.
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The AD curve shows that, as the price level falls the quantity of
a. GDP demanded increases.
b. GDP demand decreases.
c. Real GDP demanded increases.
d. Real GDP demanded decreases.
e. none of the above
If taxes are increased, the AD curve
Select one:
a. shifts rightward and aggregate demand decreases.
b. shifts leftward and aggregate demand decreases.
c. does not shift but there is a movement down along the curve.
d. is not affected because a change in taxes is a nominal change not real change.
28. Among the factors that might have led to the outbreak of the 2007-09 recession, which most likely caused a shift of the IA line instead of the AD curve?
O. Sharp increases in commodity prices.
O. Credit crunch.
O. Financial crisis.
O. Collapse of the housing bubble.
O. Stock market collapse.
29. If there is a sharp increase in oil prices, in the short run.
O. Consumption and investment will fall.
O. Consumption will fall, investment will increase, and net exports will fall.
O. Consumption, investment, and net exports will stay constant.
O. Consumption will fall while investment and net exports will stay constant.
O. Consumptionwill fall, net exports will increase, and investment will stay constant.
Chapter 12 Solutions
Macroeconomics
Ch. 12.7 - Prob. 1QQCh. 12.7 - Prob. 2QQCh. 12.7 - Prob. 3QQCh. 12.7 - Prob. 4QQCh. 12.A - Prob. 1ADQCh. 12.A - Prob. 2ADQCh. 12.A - Prob. 1ARQCh. 12.A - Prob. 2ARQCh. 12.A - Prob. 1APCh. 12.A - Prob. 2AP
Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Prob. 4RQCh. 12 - Prob. 5RQCh. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4PCh. 12 - Prob. 5P
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