Download Other things the same, an increase in the price level, leads to an

Other things the same, an increase in the price
level, leads to an increase in the interest rate
which leads to an appreciation of the dollar.
1. True
2. False
Other things the same, an increase in the price
level, leads to an increase in the interest rate
which leads to an appreciation of the dollar.
1. True
2. False
Over time technological progress shifts the
aggregate supply curve to the right making the
inflation rate higher than otherwise.
1. True
2. False
Over time technological progress shifts the
aggregate supply curve to the right making the
inflation rate higher than otherwise.
1. True
2. False
What part of real GDP fluctuates most
over the course of the business cycle?
1. consumption
2. government
expenditure
3. investment
4. net exports
What part of real GDP fluctuates most
over the course of the business cycle?
1. consumption
2. government
expenditure
3. investment
4. net exports
According to the wealth effect, one of the reasons
for the slope of the aggregate demand curve is
that falling prices
1.
2.
3.
4.
increase the value of money
holdings so consumer
spending increases.
decrease the value of money
holdings so consumer
spending increases.
increase the value of money
holdings so consumer
spending decreases.
decrease the value of money
holdings so consumer
spending decreases.
According to the wealth effect, one of the reasons
for the slope of the aggregate demand curve is
that falling prices
1.
2.
3.
4.
increase the value of money
holdings so consumer
spending increases.
decrease the value of money
holdings so consumer
spending increases.
increase the value of money
holdings so consumer
spending decreases.
decrease the value of money
holdings so consumer
spending decreases.
If the price level increases,
1. investment demand
increases and interest
rates increase.
2. investment demand
decreases and interest
rates increase.
3. investment demand
increases and interest
rates decrease.
4. investment demand
decreases and interest
rates decrease.
If the price level increases,
1. investment demand
increases and interest
rates increase.
2. investment demand
decreases and interest
rates increase.
3. investment demand
increases and interest
rates decrease.
4. investment demand
decreases and interest
rates decrease.
Which of the following shifts aggregate
demand to the right?
1. the price level
decreases
2. government
expenditures increase
3. an investment tax
credit is repealed
4. the money supply
decreases
Which of the following shifts aggregate
demand to the right?
1. the price level
decreases
2. government
expenditures increase
3. an investment tax
credit is repealed
4. the money supply
decreases
The misperceptions theory of the short-run aggregate
supply curve says that output supplied will increase if the
price level
1.
2.
3.
4.
is higher than expected so that
firms believe the relative price
of their output has increased.
is higher than expected so that
firms believe the relative price
of their output has decreased.
is less than expected so that
firms believe the relative price
of their output has increased.
is less than expected so that
firms believe the relative price
of their output has decreased.
The misperceptions theory of the short-run aggregate
supply curve says that output supplied will increase if the
price level
1.
2.
3.
4.
is higher than expected so that
firms believe the relative price
of their output has increased.
is higher than expected so that
firms believe the relative price
of their output has decreased.
is less than expected so that
firms believe the relative price
of their output has increased.
is less than expected so that
firms believe the relative price
of their output has decreased.
Which of the following causes the short-run
aggregate supply curve to shift left?
1. an increase in the
productivity of labor
2. an increase in the
price of oil
3. a decrease in the
price level
4. a decrease in the
money supply
Which of the following causes the short-run
aggregate supply curve to shift left?
1. an increase in the
productivity of labor
2. an increase in the
price of oil
3. a decrease in the
price level
4. a decrease in the
money supply
According to the long-run aggregate supply curve
which of the following would raise the quantity of
output in the long run?
1.
2.
3.
4.
both an increase in the price
level and an increase in the
capital stock.
an increase in the price
level, but not an increase in
the capital stock.
an increase in the capital
stock, but not an increase in
the price level.
neither an increase in the
price level nor an increase in
the capital stock.
According to the long-run aggregate supply curve
which of the following would raise the quantity of
output in the long run?
1.
2.
3.
4.
both an increase in the price
level and an increase in the
capital stock.
an increase in the price
level, but not an increase in
the capital stock.
an increase in the capital
stock, but not an increase in
the price level.
neither an increase in the
price level nor an increase in
the capital stock.
Suppose the demand for exports falls as a result of
recession overseas. Other things constant, in the
short run the U.S. economy will likely experience
1. an increase in
unemployment.
2. an increase in the
price level.
3. a decrease in real
wages.
4. a decrease in the
value of money
holdings.
Suppose the demand for exports falls as a result of
recession overseas. Other things constant, in the
short run the U.S. economy will likely experience
1. an increase in
unemployment.
2. an increase in the
price level.
3. a decrease in real
wages.
4. a decrease in the
value of money
holdings.
Suppose a stock market crash makes
people feel poorer. In the AD-AS model, this
would shift
1.
2.
3.
4.
aggregate supply right.
aggregate supply left.
aggregate demand right.
aggregate demand left.
Suppose a stock market crash makes
people feel poorer. In the AD-AS model, this
would shift
1.
2.
3.
4.
aggregate supply right.
aggregate supply left.
aggregate demand right.
aggregate demand left.
Refer to the diagram below. Other things the same and
given the aggregate demand and aggregate supply
conditions shown, which of the following will happen?
Price
Level
LRAS
AS
AD 2
AD 1
RGDP
1.
2.
3.
4.
The expected price level will fall so
aggregate demand will shift right.
The expected price level will rise so
aggregate demand will shift right.
The expected price level will fall so
aggregate supply will shift right.
The expected price level will rise so
aggregate demand will shift right.
Refer to the diagram below. Other things the same and
given the aggregate demand and aggregate supply
conditions shown, which of the following will happen?
Price
Level
LRAS
AS
AD 2
AD 1
RGDP
1.
2.
3.
4.
The expected price level will fall so
aggregate demand will shift right.
The expected price level will rise so
aggregate demand will shift right.
The expected price level will fall so
aggregate supply will shift right.
The expected price level will rise so
aggregate demand will shift right.
The recession of 2008-2009 could have
been the result of
1. losses in the financial
market which caused AS
to shift to the left.
2. losses in the financial
market which caused AS
to shift to the right.
3. losses in the financial
market which caused AD
to shift to the left.
4. losses in the financial
market which caused AD
to shift to the right.
The recession of 2008-2009 could have
been the result of
1. losses in the financial
market which caused AS
to shift to the left.
2. losses in the financial
market which caused AS
to shift to the right.
3. losses in the financial
market which caused AD
to shift to the left.
4. losses in the financial
market which caused AD
to shift to the right.