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Question;AssignmentsRead Chapters 33 and 34Answer Questions For Review 1,3,4 and 5 at the end of Chapter 33, and all Questions For Review at the end of Chapter 31. Name;two macroeconomic variables that decline when the economy goes into a;recession. Name one macroeconomic;variable that rises during a recession.1. List;and explain the three reasons the aggregate-demand curve slopes downward.="msolistparagraph">="msolistparagraph">1. Explain;why the long-run aggregate-supply curve is vertical.1. List;and explain the three theories for why the short-run aggregate-supply curve;slopes upward.="msolistparagraph">="msolistparagraph">="msolistparagraph">="msolistparagraph">="msolistparagraph">="msolistparagraph">1. What;is the theory of liquidity preference? How does it help explain the downward;slope of the aggregate-demand curve?1. Use;the theory of liquidity preference to explain how a decrease in the money;supply affects the aggregate-demand curve.="msolistparagraph">="msolistparagraph">="msolistparagraph">="msolistparagraph">="msolistparagraph">="msolistparagraph">1. The;government spends $3 billion to buy police cars. Explain why aggregate;demand might increase by more than $3 billion. Explain why aggregate;demand might increase by less than $3 billion.1. Suppose;that survey measures of consumer confidence indicate a wave of pessimism is;sweeping the country. If policymakers do nothing, what will happen to aggregate;demand? What should the Fed do if it wants to stabilize aggregate demand? If;the Fed does nothing, what might Congress do to stabilize aggregate demand?="msolistparagraph">="msolistparagraph">="msolistparagraph">="msolistparagraph">="msolistparagraph">="msolistparagraph">="msolistparagraph">="msolistparagraph">="msolistparagraph">="msolistparagraph">="msolistparagraph">="msolistparagraph">1. Ssuppose;that survey measures of consumer confidence indicate a wave of pessimism is;sweeping the country. If policymakers do nothing, what will happen to aggregate;demand? What should the Fed do if it wants to stabilize aggregate demand? If;the Fed does nothing, what might Congress do to stabilize aggregate demand?="msolistparagraph">="msolistparagraph">="msolistparagraph">="msolistparagraph">

 

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