What are the answers to the following macroeconomics multiple choice questions?

Question

What are the answers to the following macroeconomics multiple choice questions?

For all the questions below select the appropriate answer: a) Inflation LAS ADo ADI Consider the diagram presented. If a fall in investment expenditures such as fall in residential construction shifted the AD curve from ADo to AD1 the equilibrium inflation rate would fall: regardless of the reaction of the central bank. as a result of the fiscal policy reaction implemented by the government. if exports fell in addition to the fall in investment expenditure only if the central bank lowered its inflation rate target and changed its monetary policy accordingly. b) An upward (or leftward) shift in a short run aggregate supply curve giving the relationship between inflation rates and output would be caused by: a cut in the rate of indirect taxation like the GST or a harmonized sales tax (HST) rise in the rate at which money wage rates are increasing. a fall in the rate at which money wage rates are increasing an increase in the productivity of labour.

Explanation / Answer

a) The correct answer is D.

b) The correct answer is B as the costs of production increase.

c) The correct answer is D.

d) The correct answer is D.

e) The correct answer is B.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.