After careful analysis, The Central Bank of Australia decided to decrease interest rates. This will directly affect theeconomy byO a. increasing the rate of inflationO b. decreasing tax ratesO c. encouraging more investments and consumptionO d. improving the level of exportsStructural unemployment issue will remain there undera. Intermediate zone of aggregate supplyb. Keynesian zone of aggregate supplyO c. Neoclassical zone of Aggregate supplyO d. Keynesian zone of aggregate demandContractionary fiscal policies intend toO a. Decrease aggregate demandO b. Decrease money supplyO c. Decrease aggregate supplyO d. Decrease unemployment

The government formulates policies to stabilize economic activity. The major policies are fiscal and…

After careful analysis, The Central Bank of Australia decided to decrease interest rates. This will directly affect the economy by O a. increasing the rate of inflation O b. decreasing tax rates O c. encouraging more investments and consumption O d. improving the level of exports Structural unemployment issue will remain there under O a. Intermediate zone of aggregate supply O b. Keynesian zone of aggregate supply O c. Neoclassical zone of Aggregate supply O d. Keynesian zone of aggregate demand Contractionary fiscal policies intend to O a. Decrease aggregate demand O b. Decrease money supply O c. Decrease aggregate supply O d. Decrease unemployment

After careful analysis, The Central Bank of Australia decided to decrease interest rates. This will directly affect the economy by O a. increasing the rate of inflation O b. decreasing tax rates O c. encouraging more investments and consumption O d. improving the level of exports Structural unemployment issue will remain there under O a. Intermediate zone of aggregate supply O b. Keynesian zone of aggregate supply O c. Neoclassical zone of Aggregate supply O d. Keynesian zone of aggregate demand Contractionary fiscal policies intend to O a. Decrease aggregate demand O b. Decrease money supply O c. Decrease aggregate supply O d. Decrease unemployment

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter33: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 4CQQ

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