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ANSWER TRUE/FAULT: QUESTION 3: Consider the following diagram which depicts an increase in exports, ceteris paribus. Lines AE and ae are aggregate...

I just need the 4 questions in the file I attached be answer True or Fault.

ANSWER TRUE/FAULT: QUESTION 3: Consider the following diagram which depicts an increase in exports, ceteris paribus . Lines AE and ae are aggregate expenditure schedules for an open, governed economy. Identify the true statements and then record the correct combination from the possibilities listed below the list of statements. 1. The increase in exports is measured by the distance fe. 2. The change in real GDP is given by the distance fd. 3. The increase in exports leads to a rise in GDP equal to the distance qQ. 4. The increase in exports leads to a fall in the multiplier. 5. The multiplier for this economy is given by the ratio 1/MPS+MPT+MPM. 6. The multiplier can be measured by the distance bd divided by the distance fe. 7. The rise in real GDP associated with the increase in exports leads to a rise in the level of imports. 8. The increase in exports leads to a fall in consumption spending equal to the distance ed. 9. The increase in exports leads to a rise in the actual level of inventories above that planned at the initial equilibrium. 10. The slope of the ae line is given by the MPC. 11. The increase in exports leads to a higher level of consumption at the new equilibrium. 12. Assuming a constant marginal propensity to tax, the increase in exports leads to a higher level of income tax receipts at the new equilibrium. 13. The increase in exports leads to a rise in the general price level for this economy. 14. The increase in exports results in an increase in employment for this economy. 15. The increase in exports results in a decrease in the level of actual inventories below that planned at the initial equilibrium.
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QUESTION 6: Consider the following statements and decide which are true. Record the correct combination from the possibilities listed below the list of statements. The diagram alongside depicts a shift of the aggregate demand curve (AgD curve) along the horizontal section of the AS. Assume that the shift has been caused by an increase in autonomous imports (say through a change in import prices of consumer goods, ceteris paribus ). Decide which of the following statements are true. In making that decision you should concentrate on the changes that might occur in moving from the pre- disturbance equilibrium to the post-disturbance equilibrium. 1. There will be a rise in interest rates. 2. The shift in AgD results in a decrease in real GDP and in disposable income. 3. The shift in AgD results in a fall in unemployment benfits. 4. The shift in AgD results in a fall in the government’s income tax receipts. 5. Cyclical unemployment will have risen as a result of the shift in AgD. 6. The level of imports will rise as a result of the shift in AgD because of the change in GDP. 7. The level of exports will rise as a result of the shift in AgD. 8. The rate of inflation will fall as a result of the shift in AgD. 9. There will be a decrease in the money supply, as people need less money to buy goods. 10. In the absence of other information, we can say that the shift of AgD will not change the level of structural unemployment. 11. There will be a fall in the level of net exports as a result of the shift of AgD. 12. Since the AS curve is horizontal over the relevant range, the quantity of real GDP supplied will stay the same. 13. The amount that the government raises in consumption taxes, like GST, will fall. 14. There will be more aggregate demand at each and every general price level. 15. The shift of AgD represents the multiplied change in real GDP associated with a reduction in spending brought on by the rise in imports.
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Top Answer

Dear Student, I made reading errors in 2 of the... View the full answer

Solution 2.docx

Solution:
Q:3 1. True
2. True
3. True
4. Fault
5. True
6. True
7. Fault
8. Fault
9. Fault
10. True
11. True
12. True
13. True
14. True
15. True
Final Answer: Option A
Q:6
1. Fault
2. True
3. Fault...

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