ECON-Quiz-5 - MACROECONOMICS QUIZ #5 1. John Mai 11/30/16...

This preview shows page 1 - 2 out of 4 pages.

The preview shows page 1 - 2 out of 4 pages.
John Mai11/30/16ECON 2301.003MACROECONOMICSQUIZ #51.Describe the chain of events that are likely to unfold when the government reduces nettaxes. Explain your answer in terms of its impact on aggregate output, the demand formoney, the interest rate and planned investment
2.Using the short-hand symbols Ms, r, I, Y, and Md to demonstrate the effects of anexpansionary monetary policy.
3.Explain how aggregate quantity-demanded falls when the price level increases and theimpact this has on interest rates and aggregate output.
4.Discuss how the consumption link provides another explanation for the downward-slopingaggregate demand curve.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 4 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
McElroy

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture