Question: Please answer these 3 macroeconomy questions! D Question 8 1 pts If the economy is growing beyond potential real GDP (Inflationary gap), which of the
Please answer these 3 macroeconomy questions!

D Question 8 1 pts If the economy is growing beyond potential real GDP (Inflationary gap), which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply (potential/full employment output)? An increase in the money supply and a decrease in interest rates. An increase in government purchases. An increase in oil prices. An increase in taxes. D Question 9 1 pts Q9.For a model economy, the mpc (marginal propensity to consume) is 0.8 Current GDP is $60 million. Potential GDP is $100 million. To reach full employment (overcome recessionary gap), government spending must O decrease by $40 million increase by $8 million decrease by $8 million Increase by $40 million D Question 10 1 pts If the Fed sells Treasury bills, this will shift the money supply curve to the right. O money supply curve to the left. money demand curve to the right. money demand curve to the left
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
