17. The accompanying table shows the aggregate demand and aggregate supply sched
ID: 1109957 • Letter: 1
Question
17. The accompanying table shows the aggregate demand and aggregate supply schedule for a hypothetical economy. If the quantity of real domestic output demanded increased by $1,000 at each price level, the new equilibrium price level and quantity of real domestic output would be
A. 150 and $2,500.
B. 250 and $2,500.
C. 200 and $2,000.
D. 300 and $3,000.
18. Changes in which of the following would not shift the aggregate demand curve?
A. productivity rates
B. foreign-exchange rates
C. real interest rates
D. income tax rates
19. Which of the following is not a reason why the stimulus package that the government implemented during the Great Recession of 2007–09 did not have as strong an impact on GDP and unemployment as expected?
A. Households had very high debt levels.
B. Consumers raised their saving rates.
C. The stimulus package caused prices to fall in many sectors.
D. The effects of the stimulus package were diffuse and spread thinly among many sectors.
20. A change in which one of the following factors would shift the aggregate supply curve in the short run?
A. personal income taxes
B. consumer spending
C. government regulation
D. profit expectations on investment projects
PLEASE ANSWER ALL THANK YOU!
Real Domestic Output Demanded (in Billions) Price Level (Index Value) Real Domestic Output Supplied $500 350 $3,500 1,000 300 3,000 1,500 250 2,500 2,000 200 2,000 2,500 150 1,500 3,000 100 1,000Explanation / Answer
17) The asnwer is B -) 250 and $2500.
because , at this price the real output quantity demanded $2500 is equal to real output quantity supplied $2500. thus this is euquilbruim quantity and price is 250.
18) The asnwer is A -) Productivity rates.
because, all in the other options, the aggregate demand curve shift , because when tax rate changes, people either have less disposable or more disposable income thus, aggregate demand increase or decrease. and when real interest changes, the borrowing is either increase or decrease which direct effect on aggregate demand to increase or decrease.
19) The asnwer is C -) The stimulus package caused prices to fall in many sectors.
20) .The asnwer is D-) Profit expectations on investment projects.
because, when the profit expectations on investment , the business will expand , and the more output will be produced because profit expectation is high which result in the shift of the aggregate supply curve.
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