Drawing Changes in AD/AS
Draw the economy in long-run equilibrium, then illustrate the change(s): All graphs must be labeled properly!
The government increases taxes by $2mil and increases spending by $2mil
Increase in AD
These are the options for expansionary fiscal policy?
What is increase spending or decrease taxes?
The shifters of this curve are consumer spending, investment, government spending and net exports
What is Aggregate demand?
This graph shows the concept of stagflation
What is A?
The founder of this university willed his South Carolina home & 814 acres to start an agricultural college
What is Clemson?
Draw the economy in long-run equilibrium, then illustrate the change(s): All graphs must be labeled properly!
There is a dramatic reduction in the price of oil
Increase SRAS
A contractionary fiscal policy is when the government decreases spending and increases taxes, and this is used to fight...
What is inflation?
This occurs on the AD/AS graph when the current equilibrium output is below the full employment output.
What is a Recessionary Gap?
This is the type of inflation that occurs when the price of resources to produce things increases, thereby increasing the price of the products.
What is cost-push inflation?
In order from left to right, what are the colors of the Olympic rings.
What are blue, yellow, black, green, red
Draw the economy in long-run equilibrium, then illustrate the change(s): All graphs must be labeled properly!
Long run effect if the government were to offer a tax incentive to businesses who make new investments.
Increase LRAS
If the marginal propensity to consume is .75, and the government increases spending by $2 million, what is the overall change in GDP?
What is $8 million?
Real GDP increased by $600,000 and MPC is 0.45. Find the original change in aggregate demand
What is 330,000
Multiplier is 1.818
600,000/1.818
In 2020, the global pandemic decreased consumer and investment spending in the short run which caused...
a) Price Level to increase and GDP output to increase
b) Price level to decrease and GDP output to increase
c) Price level to increase and GDP output to decrease
d) Prive level to decrease and GDP output to decrease
What is D?
A decathlon is comprised of 10 track and field events. The team that can name the most events correctly wins the points.
What are
100m
Long Jump
Shot Put
High Jump
400m
110m hurdles
Discus
Pole Vault
Javelin
1500m
Draw the economy in long-run equilibrium, then illustrate the change(s): All graphs must be labeled properly!
Foreign incomes significantly increase
If the marginal propensity to consume is .8, and the government increases taxes by $4 million, what is the overall change in GDP?
What is a decrease of $16 million?
We observe an increase in the price level and an increase in real GDP. Which of the following is a possible explanation?
a) The money supply has decreased
b) The price of raw materials has increased
c) The expectations of future profits has increased
d) There has been an increase in capital stock
What is C?
What discretionary fiscal policy action could bring the economy back to full employment output?
a) decrease government spending
b) increase taxes for businesses
c) cut taxes for individuals
d) increase minimum wage
What is C?
With Elvis Presley the leader in the clubhouse, in order for an album to be considered platinum it has to have sold this many copies.
1 million
Draw the economy in long-run equilibrium, then illustrate the change(s): All graphs must be labeled properly!
The government increases spending and at the same time there is a dramatic increase in the price of resources on producers.
PL and rGDP will either increase, decrease or be indeterminate. Which will happen?
PL increase
rGDP indeterminate
If MPC is .6, how much would the government need to cut taxes in order to fully close this gap?
What is 133.33billion
Dariel had his hours cut from his job, so that his disposable income decreased from $59,500/yr to $51,000/yr. His consumption dropped from $46,000/yr to $40,000/yr. Calculate his MPS
What is 0.294
What can we tell about unemployment from looking at this graph?
It's Less than NRU; less than 4%
Which is HIGHER...
The total number of days William Henry Harrison served as president
or
The percentage of speeches in Shakespeare plays that are recited by female characters.
Days Harrison served as president
31 days vs. 17%