Contractionary policy - Study guides, Class notes & Summaries

ECS1601 Assignment 2 (COMPLETE ANSWERS) 2024 - DUE 30 July 2024 ; 100% TRUSTED Complete, trusted solutions and explanations. For assistance, Whats-App 0.6.7-1.7.1-1.7.3.9. Ensure your success with us . . Which one of the following is most likely to increase the demand for US dollars on the South African foreign exchangemarket? a. a decrease in international tourism by South Africans. b. a recession in South Africa. c. an expected decline in the value of the rand relative to the dollar. d...

ECS2602 ASSIGNMENT 2 SEMESTER 2 2024 The diagram illustrates _____________ monetary policy, the interest rate ___________, and the LM curve shifts _____________. Select one: A. an expansionary; decreases; downwards B. a contractionary; decreases; downwards C. an expansionary; increases; upwards D. a contractionary; decreases; downward If government spending decreases, what would be the impact on the interest rate in the IS-LM model? Select one: A. The interest rate is unchan...

ECS2602 ASSIGNMENT 1 SEMESTER 2 2024 Which one of the following statements is correct? Select one: A. A decrease in the interest rate implies the implementation of expansionary monetary policy. B. Inflation targeting is an example of a stabilisation policy. C. An increase in taxes implies the implementation of expansionary fiscal policy. D. A contractionary monetary policy implies a decrease in the interest rate to increase the money supply

ECS2602 Assesment 2 Macroeconomics The term “full employment” refers to a situation in the economy … Select one: A. in which there is only frictional and structural unemployment. B. where everybody who wants to work is employed. C. in which there is only cyclical unemployment and frictional unemployment. D. where there is no unemployment in the economy. Question 2 Correct Mark 1.00 out of 1.00 Question text Flag question Which one of the following statements is correct rega...

ECS1601 Assignment 4 Semester 2 2023 (SOLUTIONS/ANSWERS) Question 1 Answer saved Marked out of 1.00 Flag question Question text The distribution effects of inflation are best described by … a. the elderly benefiting at the expense of the young. b. creditors benefiting at the expense of debtors. c. borrowers benefiting at the expense of lenders. d. the poor benefiting at the expense of the rich. Clear my choice Question 2 Answer saved Marked out of 1.00 Flag question Quest...

normative statement an opinion that cannot be confirmed by referencing facts positive statement a statement that can be proved by referencing facts why are economic models used? theories cannot be tested in a controlled environment the basic economic problem scarcity - consumer wants are always greater than available resources opportunity cost the next best alternative foregone factors of production resources used by a firm in production list and define the factors of production lab...

Expansionary Fiscal Policy (increases/decreases) real output, employment and national income - Answer-increases Contrationary Fiscal Policy (increases/decreases) real output, employment and national income - Answer-decreases Expansionary or Contractionary Fiscal Policy? Increases in the AD curve - Answer-Expansionary Expansionary or Contractionary Fiscal Policy? Will cause a budget surplus - Answer-Contractionary Expansionary or Contractionary Fiscal Policy? Increasing government spendi...

ECON 211 Exam 3 (UNL) Verified Answers countercyclical policies attempt: to reduce the intensity of economic fluctuations & smooth the GDP rate Brainpower Read More expansion policy aims: to reduce the severity of an economic recession by shifting the labor demand curve to the right & "expand" the economic activity (GDP) expansion policy means to: heat up the economy expansion policy: when does a recession occur? when the labor demand curve shifts to the left contractio...

Movement on Short-Run Phillips Curve CORRECT ANSWER Shift in AD (graph movement is in opposite direction) Shift of Short-Run Phillips Curve CORRECT ANSWER Shift in SRAS (shift is in opposite direction) Factors of Production CORRECT ANSWER 1. Land 2. Labor 3. Capital 4. Technology Shifters of Demand for Loanable Funds CORRECT ANSWER 1. Incentive to Invest 2. Contractionary Fiscal Policy (to the right) Shifters of Supply of Loanable Funds CORRECT ANSWER 1. Incentive to Save 2. Mon...

ECS1601Test bank with answers Economics, past exam papers Exam-Pack-Index From 2017-2022, assignment 1, assignment 2, .. ..complete solutions 1 ECS1601 TEST BANK Question 1 In the goods market of the circular flow model, …. 1) firms buy factors of production from consumers 2) firms buy finished products from households 3) consumers buy factors of production from firms 4) firms sell factors of production to the government 5) consumers buy finished products from firms Th...

If there is crowding out... Fiscal expansion (Lowers/Raises) interest rates, which (Increases/Reduces) the net increase in aggregate demand - Raises & Reduces According to the theory of rational expectations, if households and firms believe the Federal Reserve's contractionary policy to be credible and revise expectations to expect a lower inflation rate - Inflation will fall and there would be less unemployment than the traditional sacrifice ratio predicts Which of the following would ca...