Economia
Páginas: 2 (476 palabras)
Publicado: 5 de noviembre de 2012
Chapter
27
AGGREGATE
SUPPLY AND
AGGREGATE
DEMAND**
Solutions to the Odd-Numbered Problems
1.
a
b
c.
d.
3.
a.
b.
5.
a.
b.
*
A deep recession in theworld economy decreases aggregate demand. A sharp rise in oil
prices decreases short-run aggregate supply. The expectation of huge losses in the future
decreases investment and decreases aggregatedemand.
A deep recession in the world economy decreases aggregate demand, which decreases real
GDP and lowers the price level. A sharp rise in oil prices decreases short-run aggregate
supply, whichdecreases real GDP and raises the price level. The expectation of huge losses
in the future decreases investment and decreases aggregate demand, which decreases real
GDP and lowers the price level.The combined effect of a deep recession in the world economy, a sharp rise in oil prices, and
the expectation of huge losses in the future decreases both aggregate demand and short-run
aggregatesupply, which decreases real GDP and might raise or lower the price level.
Classical and monetarist economists likely would recommend no policy action for all three
of the events. If they suggested anypolicy at all, the policy probably would involve cutting
taxes. A Keynesian economist likely would suggest several policies for all three events. A
Keynesian economist would suggest that the U.S.government increase aggregate demand by
increasing its purchases or by cutting taxes. The Keynesian economist also would suggest
that the Fed increase the quantity of money and lower interest rates.The short-run equilibrium real GDP and price level are determined by where the quantity of
real GDP demanded equals the quantity of real GDP supplied in the short run. From the
table, the short-runequilibrium real GDP is £1,100 billion and the price level is 110.
Equilibrium real GDP exceeds potential GDP, so the United Kingdom has an inflationary
gap. The inflationary gap equals the...
27
AGGREGATE
SUPPLY AND
AGGREGATE
DEMAND**
Solutions to the Odd-Numbered Problems
1.
a
b
c.
d.
3.
a.
b.
5.
a.
b.
*
A deep recession in theworld economy decreases aggregate demand. A sharp rise in oil
prices decreases short-run aggregate supply. The expectation of huge losses in the future
decreases investment and decreases aggregatedemand.
A deep recession in the world economy decreases aggregate demand, which decreases real
GDP and lowers the price level. A sharp rise in oil prices decreases short-run aggregate
supply, whichdecreases real GDP and raises the price level. The expectation of huge losses
in the future decreases investment and decreases aggregate demand, which decreases real
GDP and lowers the price level.The combined effect of a deep recession in the world economy, a sharp rise in oil prices, and
the expectation of huge losses in the future decreases both aggregate demand and short-run
aggregatesupply, which decreases real GDP and might raise or lower the price level.
Classical and monetarist economists likely would recommend no policy action for all three
of the events. If they suggested anypolicy at all, the policy probably would involve cutting
taxes. A Keynesian economist likely would suggest several policies for all three events. A
Keynesian economist would suggest that the U.S.government increase aggregate demand by
increasing its purchases or by cutting taxes. The Keynesian economist also would suggest
that the Fed increase the quantity of money and lower interest rates.The short-run equilibrium real GDP and price level are determined by where the quantity of
real GDP demanded equals the quantity of real GDP supplied in the short run. From the
table, the short-runequilibrium real GDP is £1,100 billion and the price level is 110.
Equilibrium real GDP exceeds potential GDP, so the United Kingdom has an inflationary
gap. The inflationary gap equals the...
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