An increase in government purchases of $200 billion will shift the aggregate dem

Question

An increase in government purchases of $200 billion will shift the aggregate demand curse to the right by $200 billion. less than $200 billion. more than $200 billion. This policy shifts the short-run aggregate supply curse. None of the above If the economy receives an influx of new workers from immigration the long-run aggregate supply curve will shift to the right. the long-run aggregate supply curve will shift to the left. We will move up along the long-run aggregate supply curve. we will move down along the long-run aggregate supply curve. None of the above Workers expect inflation rate to fall from 3% to 0.5% next year. As a result, this should shift the short-run aggregate supply curse to the left. shift the short-run aggregate supply curve to the right move the economy up along a stationary short-run aggregate supply curve move the economy down along a stationary short-run aggregate supply curve. None of the above Refer to Figure 12-1. Holding everything else constant, a decrease in households' expectations future income would be represented by a movement from AD_1 to AD_2 AD_2 to AD_1 point A to point B. point B to point A. None of the above.

Explanation / Answer

Answers

1) C) By More than $200 billion

Multiplier not given so assuming investment-accelerator effects

2) A) The long run aggregate supply Curve will shift to the right

3) B) shift the short-run aggregate supply curve to the right.

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