2010_Econ%20110A%20blanchard%204e%20Ch%207%20HomeworkQuestions

2010_Econ%20110A%20blanchard%204e%20Ch%207%20HomeworkQuestions

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Econ 110A Ch 7 Homework Questions Please, do not use a calculator or any other devices such as cell phones or computers. 1. Which of the following shifts the AD curve to the right? A. an increase in taxes. B. an increase in consumer confidence. A. a decrease in the price level. D. an increase in the price level. 2. If output is lower than the natural level of output, A. the price level is lower than the expected level of price. B. the unemployment rate is lower than the natural level of unemployment. C. the price level will be higher next period than this period. 3. Assume that the economy is currently operating at the natural level of output. An increase in taxes will ___ output and will ___ the price level in the short run. A. increase, increase. B. increase, decrease. C. increase, not change. D. decrease, increase. E. decrease, decrease. F. decrease, not change. G. not change, increase. H. not change, decrease. I. not change, not change. 4. Assume the economy is currently operating at the natural level of output.
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2010_Econ%20110A%20blanchard%204e%20Ch%207%20HomeworkQuestions

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