Mã đề 3

Answer question 4:

Statement (a) is false because the aggregate-demand curve slopes downward because the causes are
not the horizontal sum of the demand curves for individual goods. The first reason is the Wealth Effect.
It means when the price level decrease make raises the real value of money, so people need less money
to buy goods and services. That makes consumers feel richer, so encourage them to spend more. Then
consumption (Y) increases. That means the quantity of goods and services demanded (AD) will increase.
The second reason is the Interest-Rate Effect . When price level decrease leads people to need less
money to buy the goods and services they want. Therefore, they do not need to hold as much money
and they can buy bonds or stocks instead of selling them. That reduces the interest rate. The lower
interest rate encourages people to spend more on investment goods (I increase). Then increases the
quantity of goods and services demanded (AD increase). the third reason is the exchange-Rate Effect. It
means when the price level decrease that makes people need less money to buy the goods and services
they want. Therefore, they do not need to hold as much money and they can buy bonds or stocks
instead of selling them. That reduces the interest rate, so domestic assets become less attractive to
foreign people. That leads to an inflow fund decrease leading to an NCO increase, so the supply of
dollars curve shifts to the right creating a new equilibrium. At this equilibrium, net exports increase (NX
increase). Then increase the quantity of goods and services demanded (AD increase) . Statement (b) is
false because the long-run aggregate-supply curve is vertical because long-run aggregate supply is not
dependent on the price level not because economic forces do not affect long-run aggregate supply. It
means when the price change does not affect long-run aggregate supply. More specifically, productivity
is a real variable and in the long run it is not affected by the price but only depends on its supplies of
labor, capital, and natural resources and on the available technology to production into goods and
services. Moreover, the price level changes due to the quantity of money changes. That can't affect
technology or the supplies of labor, capital, and natural resources, the output of goods and services.
Answer question 10:

A capital flight occurs in that country when funds out of a country are such a large and sudden
movement. When a country experiences capital flight, foreigners continuously withdraw capital, making
capital outflow increase sharply. Then net capital outflow also increases. This affects directly (B) causes
the NCO curve to shift to the right. At the same time, it also affects (A) The Market for Loanable Funds,
an increase in NCO also causes an increase in the demand for Loanable Funds ( because D=I+NCO, so
NCO increases then D increases), and the demand curve shifts to the right. At the new equilibrium
determine a higher real interest rate (r). For (C) The Market for Foreign-Currency Exchange, NCO
increases, causing the supply curve to shift to the right. At the new equilibrium the exchange rate
decreases. To summarize, when the country experiences capital flight, interest rate increases and the
exchange rate decreases.