Question: No additional information 7. Which one of these variables do not shift the aggregate demand curve a. Changes in government policies b. Changes in the

No additional information

7. Which one of these variables do not shift the aggregate demand curve a. Changes in government policies b. Changes in the price level c. Changes in the expectations of households and firms d. Changes in foreign variables 8. In the long run, the level of real GDP is called a. Potential GDP b. Actual GDP c. Full-employment GDP d. A and C Course Title: Macroeconomics Course Code: ECON252 5|Page 9. Actual GDP is 26.4. Potential GDP is equal to 27.5. Multiplier in this economy is 4. What should be the change in Investment to reach the potential? a. Increase 4 times b. Increase by 0.28 c. Decrease by 0.28 d. Decrease 4 times 10. Government purchases multiplier is 3. If government increases spending by 120 million, what will be the change in real GDP? a. 'Will decrease by 360 million b. Will result in recession c. Will increase by 360 million d. Will result in expansion

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