4.2. Which of the following statements regarding the AD-AS model is/are correct?

Question

4.2. Which of the following statements regarding the AD-AS model is/are correct? a. An expansionary fiscal policy occurs when either consumption spending, or b. A contractionary monetary policy occurs when there is a decrease in interest rates, c. In the AD-AS model, demand management policies can be used to influence government spending are increased. ceteris paribus. aggregate demand and aggregate supply. 1] All the statements are correct. 12] b 13] C 4] a and b [5] a and c 83 4.3. Which one of the following statements regarding the aggregate supply is/are correct? a. An increase in the cost of labour will result in a decrease in both aggregate supply and b. A decrease in the prices of imported capital will cause an increase in the aggregate c. A decrease in productivity will cause a decrease in the aggregate supply and a the general price level. supply and a decrease in the general price level. decrease in the general price level. 1 b andc 12] a and c 13] b 14] a [5] All the statements are correct

Explanation / Answer

Solution :- 4.2 The Correct answer is [5] The Statement a and c are correct

Solution :- 4.3 The Correct answer is [3] The Statement b is correct

Related Questions

Navigate

• Browse (All)
• Browse 4
• Subjects

---

---

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