ECON 162 Binghamton University Macroeconomics Essay

QUESTION 2

1. In the Fireside Chat above, what macroeconomic concept is expressed in paragraph 46? (It is going to cost something to get out of this recession this way…)
   

   	a.	hyperinflation
   	b.	the Keynesian spending multiplier
   	c.	full employment GDP
   	d.	The GDP Gap
   	e.	the fixed-price Keynesian model aggregate supply curve.

1 points

QUESTION 3

1. Assume a model with a downward-sloping aggregate demand curve and an upward-sloping aggregate supply curve. What are the effects of an increase in aggregate demand?

   	a.	an increase in the price level and an increase in real GDP.
   	b.	a decrease in the price level and an increase in real GDP.
   	c.	an increase in the price level and a decrease in real GDP.
   	d.	a decrease in the price level and a decrease in real GDP.
   	e.	an increase in the price level and no change in real GDP.