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SOVA2 [1]
3 years ago
7

Given that the economy is operating in the horizontal section of the aggregate supply curve in the simple Keynesian model, an in

crease in spending will ____________________ (assuming that the economy remains in the horizontal section of the aggregate supply curve).
Business
1 answer:
NNADVOKAT [17]3 years ago
5 0

Answer:

Given that the economy is operating in the horizontal section of the aggregate supply curve in the simple Keynesian model, an increase in spending will lead to __________no change in price level and an increase in real GDP__________ (assuming that the economy remains in the horizontal section of the aggregate supply curve).

Explanation:

When the aggregate supply curve shifts outward, the economy's output and real GDP increase at a given price in the short-run when aggregate supply is determined by price.  But with the simple Keynesian model, price does not influence supply as there is an equilibrium in the aggregate expenditures and output in the economy.

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<h3>What is a personal commercial?</h3>

Others are:

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6 0
2 years ago
If Congress passes a plan to cut the national debt in half, then:
Alenkasestr [34]

Answer:

3) AD shifts right and output would decrease.

Explanation:

Aggregate demand (AD) is the total number of goods demanded in an economy in a period of time.

If Congress decides to cut the National debt (or accumulated debt of the government) by half, this will make interest rates lower and will encourage investment from the private sector.

The shifting to the right occurs when these components; consumption spending and investment spending increases due to cut in National debt.

The AD curve will shift back to the left as these components decreases.

5 0
3 years ago
Which of the following is not an example of how you can reduce the full
andrezito [222]

To reduce the cost of higher education, what should not be done is to get low grades, because they can sanction you and you will have to repeat some subjects.

<h3>What is higher education?</h3>

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7 0
2 years ago
A firm has actual sales in November of $1,000 and projected sales in December and January of $3,000 and $4,000, respectively. Th
inn [45]

Answer:

b. 2,100

Explanation:

On January will be collected: a) 10% January´s sales because is collected in cash; b) 40% December´s sales because is collected one month following the sale, and 50% November sales because the balance is collected two months following the sale.

So we can calcula like follows:

Expected cash receipts in January = (4,000 * 0.10) + (3,000 * 0.40) + (1,000 * 0.50)

Expected cash receipts in January = 400 + 1,200 + 500

Expected cash receipts in January = 2,100

8 0
3 years ago
In recent times, the value of "currency" as well as "checkable deposits" was about $___________ billion each.
Alinara [238K]

Answer:

As of December 2019, the total amount of currency in the US economy was $1,700 billion, while total checkable deposits as of December 2019 was $2,300 billion.

Explanation:

Total M1 money supply in the US economy as of December 2019 was $4 trillion (as stated by the federal reserve)

M1 money supply includes checkable deposits, paper bills and coins (currency) and travelers' checks.

6 0
3 years ago
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