Which of the following would be an appropriate response to a decrease in aggregate demand from a Keynesian perspective?

The country of Devlina invests heavily in new technology and infrastructure, significantly improving its productive capacity over time. How will these investments likely affect Devlina’s long-run aggregate supply (LRAS) curve, and what are the implications for long-term economic growth?

If the price of housing is too expensive, which of the following policies does economic theory predict would be most successful in solving the housing problem?

Which of the following would be an appropriate response of the Federal Reserve to an inflationary gap (real GDP above potential)?

The country of Zanibar is facing an annual inflation rate of 12%, which is much higher than its historical average of 3%. Meanwhile, wages have only increased by 4% over the same period. What are the likely effects of this disparity between the inflation rate and wage growth on the average citizen in this country?

Which of the following options would be most likely to reduce a government’s budget deficit?

If real GDP is significantly above potential (or the economy is growing much faster than normal), why might economic policymakers take actions designed to decrease GDP (or slow economic growth)?

LeCompte Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $620,000, and its net income after taxes was $24,655. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%. What profit margin would LeCompte need in order to achieve the 15% ROE, holding everything else constant?

You decide to buy a house for a total of $. To get a mortgage loan, you make a 10% down payment, and the bank will lend you the rest. The interest rate quoted for this loan is % APR, and the loan will be paid (and interest compounded) every month, for the next 30 years. How much is the TOTAL monthly payment for this mortgage? Enter your answer in dollars, rounded to the nearest cent (2 decimals), and without the dollar sign (‘$’). For example, if your answer is $123,456.789, just enter 123456.79

A bond offers a coupon rate of %, paid annually, and has a maturity of years. The current market yield is %. Face value is $1,000. If market conditions remain unchanged, what should be the Capital Gains Yield of the bond? Enter your answer as a percentage, rounded to two decimals, and without the percentage sign (‘%’). For example, if your answer is 0.123456, then it is equivalent to 12.35%, so you should enter 12.35 as the answer. Use the minus sign (‘-‘) if the yield is negative.