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in the short run, a decrease in government purchases causes output to __ and the unemployment rate to______?
In the short run, a decrease in government purchases causes output to _______________and the unemployment rate to ______________.
a. increase; increase
b. decrease; decrease
c. increase; decrease
d. decrease; increase
Assume output is initially at the long run level. An increase in the money supply causes output to _______in the short run and _________in the long run, relative to its initial level.
a. increase; not change
b. increase; decrease
c. decrease; increase
d. not change; increase
Assume output is initially at the long run level. A decrease in the money supply causes the price level to _____________in the long run.
a. decrease
b. increase
c. remain unchanged
An increase in household saving causes the real interest rate to
a. increase.
b. decrease.
c. not change.
If the Treasury sells fewer bonds to the public because of a decrease in the government budget deficit the real interest rate
a. increases.
b. decreases.
c. does not change.
A recession in China causes the U.S. trade balance to
a. increase.
b. decrease.
c. not change.
4 Answers
- 9 years agoFavorite Answer
Lol, either your homework is on word document or you put so much effort in typing them than actually answering them.
Anyway, IMO:
1. D
2. A
3. C
4. B
5. B
6. No idea. China has small domestic demand, so recession there is because US and Europe purchase less than usual. So on balance of probabilities, I'd say A since US don't export much there.
Source(s): Pure guesswork - criadoLv 44 years ago
all of them components that the government attempts to regulate. i might say low unemployment is a needed factor. severe employment leads to bigger GDP. economic rules are approximately changing taxes or government spending. reducing tax and expanding spending might advance employment. Inflation might take place as human beings have extra earnings so as that they spend it at as quickly as, after the government intervention comes down the pike. hence, after a advance (once you bigger employment), the financial device might bypass to a recession reason for inflation.. economics consistently create and ruin, each time a central authority attempts to play for one factor , it creates ingredient effects. endure in techniques that there isnt one plan that works completely for the period of distinctive sessions of cases. politicians and cliometricians ought to save their powder dry via monitoring the financial atmosphere continuously i thikn whether this is an essay , you ought to make many links, this is an uncomplicated question, i'm hoping each and every thing falls into place.
- Anonymous9 years ago
I seem to be seeing a lot of people putting their homework up...I am not helping anyone anymore...do it yourself these are bad question but are pretty easy...you can probably Google all the answers.
- οικοςLv 79 years ago
Oh, come on. THINK. These are all logical questions which don't even require a knowledge of economics.