Need help with those questions, thanks! Question 6 Not vet answered Marked out o

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Need help with those questions, thanks!

Question 6 Not vet answered Marked out of 1.00 Which of the following events will cause a reduction in the aggregate price level? Select one: a. an increase in the variable z b. an increase in output c. an increase in the markup d. an increase in P e. a reduction in output Flag question Question 7 Not vet answered Marked out of 1.00 Which of the following statements about the adjustment process in the economy is incorrect? Select one O a : Flag question An increase in employment decreases unemployment. b. An increase in output increases employment. C. An increase in demand increases output. d. Higher prices increase demand e. Output in excess of the natural level leads to higher prices Question 8 Not vet answered Marked out of 1.00 The best description of monetary and fiscal policy in Canada during the Great Depression would be Select one: Flag question contractionary monetary policy and contractionary fiscal policy b. expansionary monetary policy and contractionary fiscal policy c. expansionary fiscal policy and expansionary monetary policy d. contractionary monetary policy and passive fiscal policy e. expansionary fiscal policy and contractionary monetary policy

Explanation / Answer

6. An increase in the output will cause the aggregate price level because the rise in output will lead to higher supply and a consequent fall in price. Hence the correct answer is (B).

7. The statement that is incorrect is option (D) i.e higher prices increase demand because higher demand increases the price, not vice versa. The correct answer is (D).

8. The best description of the monetary and fiscal policy in Canada in the Great Depression would be the option (C) i.e expansionary fiscal and expansionary monetary policy.

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