In the new Keynesian model, if an aggregate demand increase is anticipated, then ________

A) aggregate demand will not change
B) short-run aggregate supply will shift up immediately
C) short-run aggregate supply will shift down immediately
D) there is no immediate effect on the short-run supply curve

B

Economics

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Let C = 300 + 0.75y and I = 200. Assume no government or foreign sectors. Investment needs to decrease by ________ to decrease equilibrium output by a total of $750

A) $75 B) $100 C) $150 D) $187.50

Economics

See Scenario 4.1. What quantity Qc will maximize Daniel's utility given the information above?

A) 0 B) 24 C) 40 D) 60 E) none of the above

Economics