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Unformatted text preview: ease in output from Y1 to Y2? a. consumption b. investment c. net exports d. government spending 17. In 1986, OPEC countries increased their production of oil. This caused a. the price level to rise. b. aggregate supply to shift right. c. unemployment to rise. d. None of the above is correct. 4 Name: ________________________ ID: A 18. During a recession the economy experiences a. rising employment and income. b. rising employment and falling income. c. rising income and falling employment. d. falling employment and income. Scenario 34‐2. The following facts apply to a small, imaginary economy. • Consumption spending is $5,200 when income is $8,000. • Consumption spending is $5,536 when income is $8,400. 19. Refer to Scenario 34‐2. The multiplier for this economy is a. 6.00. b. 6.25. c. 8.40 d. 9.00. 20. According to liquidity preference theory, a decrease in the price level causes the interest rate to a. incr...
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