(NOTESWAP)Final Lab Questions-1

(NOTESWAP)Final Lab Questions-1 - Final Lab Questions 1 If...

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Final Lab Questions: 1. If the aggregate price level decreases, the interest rate effect will cause investment to _________ and the quantity of aggregate demand to _________, everything else held constant. - Increase; increase 2. Suppose the U.S. economy is operating at full employment. A decrease in foreign economic growth, leading to recessions abroad, will cause _________ in real GDP and _________ in the unemployment rate in the U.S. in the short run, everything else held constant. - A decrease; an increase 3. The self-correcting mechanism operates in such a way that recessionary gaps are eliminated over time, by _________ in labor costs. - Decreases 4. Suppose the U.S. economy is operating at full employment. An increase in optimism about the future performance of the U.S. economy will cause _________ in the unemployment rate in the short run, and _________ in real GDP in the long run, everything else held constant. -
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This note was uploaded on 05/09/2011 for the course ECON 2000 taught by Professor Roussell during the Spring '06 term at LSU.

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(NOTESWAP)Final Lab Questions-1 - Final Lab Questions 1 If...

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