Filters
Question type
Study Flashcards

If productivity increases, then the per-unit production cost decreases.

A) True
B) False

Correct Answer

verifed

verified

When the economy is experiencing demand-pull inflation, its real GDP tends to be rising.

A) True
B) False

Correct Answer

verifed

verified

If the dollar depreciates in value relative to foreign currencies, then aggregate


A) demand decreases.
B) demand increases.
C) supply and aggregate demand increase.
D) supply and aggregate demand decrease.

E) B) and C)
F) A) and B)

Correct Answer

verifed

verified

Suppose that nominal wages fall and productivity rises in a particular economy. Other things equal, the aggregate


A) demand curve will shift leftward.
B) supply curve will shift rightward.
C) supply curve will shift leftward.
D) expenditures curve will shift downward.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

The long-run aggregate supply curve is


A) upward-sloping and becomes steeper at output levels above the full-employment output.
B) upward-sloping and becomes flatter at output levels above the full-employment output.
C) horizontal.
D) vertical.

E) A) and C)
F) All of the above

Correct Answer

verifed

verified

A) the aggregate supply curve would have to shift rightward. B) the aggregate supply curve would have to shift leftward. C) real domestic output would have to remain constant. D) the aggregate supply curve would have to be vertical.


A) the aggregate supply curve would have to shift rightward.
B) the aggregate supply curve would have to shift leftward.
C) real domestic output would have to remain constant.
D) the aggregate supply curve would have to be vertical.

E) C) and D)
F) A) and D)

Correct Answer

verifed

verified

When aggregate demand declines, wage rates may be inflexible downward, at least for a time, because of


A) the foreign purchases effect.
B) inflexible product prices.
C) labor contracts.
D) the wealth effect.

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

Which would most likely shift the aggregate supply curve? A change in the prices of


A) domestic products.
B) foreign products.
C) financial assets.
D) resources.

E) A) and D)
F) A) and C)

Correct Answer

verifed

verified

A) decrease in aggregate supply. B) decrease in the amount of output supplied. C) increase in investment spending. D) decrease in net export spending.


A) decrease in aggregate supply.
B) decrease in the amount of output supplied.
C) increase in investment spending.
D) decrease in net export spending.

E) None of the above
F) All of the above

Correct Answer

verifed

verified

In the diagram, the economy's relevant aggregate demand and long-run aggregate supply curves, are lines A) 4 and 2, respectively. B) 4 and 1, respectively. C) 2 and 4, respectively. D) 2 and 3, respectively. In the diagram, the economy's relevant aggregate demand and long-run aggregate supply curves, are lines


A) 4 and 2, respectively.
B) 4 and 1, respectively.
C) 2 and 4, respectively.
D) 2 and 3, respectively.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

A) an increase in expected returns on investment B) an increase in productivity C) a decrease in real interest rates D) a decrease in consumer wealth


A) an increase in expected returns on investment
B) an increase in productivity
C) a decrease in real interest rates
D) a decrease in consumer wealth

E) B) and C)
F) A) and B)

Correct Answer

verifed

verified

A negative GDP gap can be caused by either a decrease in aggregate demand or a decrease in aggregate supply.

A) True
B) False

Correct Answer

verifed

verified

A) cost-push in?ation, and the new equilibrium output will be less than Q _ { 2 } B) demand-pull in?ation, and the new equilibrium output will be less than Q _ { 2 } . C) demand-pull in?ation, and the new equilibrium output will be more than Q _ { 2 } D) cost-push in?ation, and the new equilibrium output will be more than Q _ { 2 }


A) cost-push in?ation, and the new equilibrium output will be less than Q2Q _ { 2 }
B) demand-pull in?ation, and the new equilibrium output will be less than Q2Q _ { 2 } .
C) demand-pull in?ation, and the new equilibrium output will be more than Q2Q _ { 2 }
D) cost-push in?ation, and the new equilibrium output will be more than Q2Q _ { 2 }

E) A) and C)
F) B) and C)

Correct Answer

verifed

verified

The aggregate supply curve (short run) becomes steeper as the economy moves rightward and upward along it.

A) True
B) False

Correct Answer

verifed

verified

An increase in personal income taxes would shift AD to the


A) right because C will increase.
B) left because C will decrease.
C) right because G will increase.
D) left because G will decrease.

E) A) and D)
F) All of the above

Correct Answer

verifed

verified

A) decrease in interest rates. B) increase in business taxes and costly government regulation. C) decrease in the prices of domestic resources. D) decrease in the price level.


A) decrease in interest rates.
B) increase in business taxes and costly government regulation.
C) decrease in the prices of domestic resources.
D) decrease in the price level.

E) B) and C)
F) A) and B)

Correct Answer

verifed

verified

Collective bargaining agreements that prohibit wage cuts for the duration of the contract contribute to


A) a wealth effect.
B) a multiplier effect.
C) an increase in aggregate supply.
D) a price level that is inflexible downward.

E) All of the above
F) A) and D)

Correct Answer

verifed

verified

Input QuantityReal Domestic Output100200150300200400\begin{array} { | c | c | } \hline Input ~Quantity & Real ~Domestic ~Output \\\hline 100 & 200 \\\hline 150 & 300 \\\hline 200 & 400 \\\hline\end{array} The table gives information about the relationship between input quantities and real domestic output in a hypothetical economy. Suppose that the price of each input increased from $5\$ 5 to $8\$ 8 . The per-unit cost of production in the economy would


A) rise by $1.50, and the aggregate supply curve would shift to the right.
B) rise by 60 percent, and the aggregate supply curve would shift to the left.
C) rise by 60 percent, and the aggregate demand curve would shift to the left.
D) fall by $1.50, and the aggregate demand curve would shift to the right.

E) B) and C)
F) A) and B)

Correct Answer

verifed

verified

Refer to the diagram. If the aggregate supply curve shifted from AS<sub>0</sub> to AS<sub>1</sub> and the aggregate demand curve remains at AD<sub>0</sub>, we could say that A) aggregate supply has increased, equilibrium output has decreased, and the price level has increased. B) aggregate supply has decreased, equilibrium output has decreased, and the price level has increased. C) an increase in the amount of output supplied has occurred. D) aggregate supply has increased and the price level has risen to G. Refer to the diagram. If the aggregate supply curve shifted from AS0 to AS1 and the aggregate demand curve remains at AD0, we could say that


A) aggregate supply has increased, equilibrium output has decreased, and the price level has increased.
B) aggregate supply has decreased, equilibrium output has decreased, and the price level has increased.
C) an increase in the amount of output supplied has occurred.
D) aggregate supply has increased and the price level has risen to G.

E) C) and D)
F) B) and C)

Correct Answer

verifed

verified

Deflation refers to a situation where


A) the price level falls; it could be caused by a shift of AD to the left.
B) the price level falls; it could be caused by a decrease in aggregate supply.
C) the rate of inflation falls; it could be caused by a shift of AS to the right.
D) the rate of inflation rises; it could be caused by a decrease in aggregate demand.

E) All of the above
F) None of the above

Correct Answer

verifed

verified

Showing 21 - 40 of 320

Related Exams

Exam 2

The Market System and the Circular Flow

274 Questions

Exam 3

Demand, Supply, and Market Equilibrium

357 Questions

Exam 4

Market Failures Caused by Externalities Asymmetric Information

222 Questions

Exam 5

Public Goods, Public Choice, and Government Failure

242 Questions

Exam 6

An Introduction to Macroeconomics

243 Questions

Exam 7

Measuring Domestic Output and National Income

238 Questions

Exam 8

Economic Growth

274 Questions

Exam 9

Business Cycles, Unemployment, and Inflation

298 Questions

Exam 10

Basic Macroeconomic Relationships

233 Questions

Exam 11

The Aggregate Expenditures Model

126 Questions

Exam 13

Fiscal Policy, Deficits, and Debt

401 Questions

Exam 14

Money, Banking, and Financial Institutions

265 Questions

Exam 15

Money Creation

285 Questions

Exam 16

Interest Rates and Monetary Policy

405 Questions

Exam 17

Financial Economics

356 Questions

Exam 18

Extending the Analysis of Aggregate Supply

268 Questions

Exam 19

Current Issues in Macro Theory and Policy

279 Questions

Exam 20

International Trade

339 Questions

Exam 21

The Balance of Payments, Exchange Rates, and Trade Deficits

315 Questions

Exam 22

The Economics of Developing Countries

269 Questions

Show Answer