FIGURE 23-2 Refer to Figure 23-2.The shift from AS1 to AS2 shown in the diagram is referred to as a(n)

A) increase in aggregate supply. B) increase in unit costs. C) negative aggregate supply shock. D) positive aggregate supply shock. E) decrease in unit costs. A) increase in aggregate supply. B) increase in unit costs. C) negative aggregate supply shock. D) positive aggregate supply shock. E) decrease in unit costs.

FIGURE 23-1 Refer to Figure 23-1.Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point V.The price level is P0.Now,suppose there is an exogenous rise in the price level to .Which of the following statements describes the likely macroeconomic effects?

A) The AE curve shifts to AE1,a new equilibrium is established at point U,and the AD curve shifts from AD0 to AD1,and equilibrium from point B to point D. B) The AE curve shifts to AE2,a new equilibrium is established at point W,and the economy moves from point B to point C along AD0. C) The AE curve shifts to AE1,a new equilibrium is established at point U,and the economy moves from point B to point A along AD0. D) The AE curve shifts to AE2,a new equilibrium is established at point W,and the AD curve shifts from AD0 to AD1,and equilibrium moves from point B to point D. A) The AE curve shifts to AE1,a new equilibrium is established at point U,and the AD curve shifts from AD0 to AD1,and equilibrium from point B to point D. B) The AE curve shifts to AE2,a new equilibrium is established at point W,and the economy moves from point B to point C along AD0. C) The AE curve shifts to AE1,a new equilibrium is established at point U,and the economy moves from point B to point A along AD0. D) The AE curve shifts to AE2,a new equilibrium is established at point W,and the AD curve shifts from AD0 to AD1,and equilibrium moves from point B to point D.

Exam 23: Real Gdp and the Price Level in the Short Run

Consider two economies,A and B.Economy A has a marginal propensity to consume of 0.9,a net tax rate of 0.2 and a marginal propensity to import of 0.2.Economy B has a marginal propensity to consume of 0.7,a net tax rate of 0.2 and a marginal propensity to import of 0.2.Suppose there is an increase in autonomous investment of $5 billion in each of these economies.Which of the following statements is true?

(Multiple Choice)

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Question 101

FIGURE 23-2 Refer to Figure 23-2.The shift from AS₁ to AS₂ shown in the diagram is referred to as a(n)

(Multiple Choice)

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Question 102

The economy's aggregate supply (AS)curve shows the relationship between the

(Multiple Choice)

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Question 103

Suppose there is a drop in the price of an important factor input.What will be the effect on the aggregate supply curve?

(Multiple Choice)

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Question 104

Suppose the economy is hit by a shock and we observe that the price level has decreased whereas real GDP has increased.We can conclude that this shock was

(Multiple Choice)

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Question 105

FIGURE 23-1 Refer to Figure 23-1.Assume the economy is initially in equilibrium with desired aggregate expenditure equal to real GDP at point V.The price level is P₀.Now,suppose there is an exogenous rise in the price level to .Which of the following statements describes the likely macroeconomic effects?

(Multiple Choice)

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Question 106

Other things being equal,an economy with a higher net tax rate will have a marginal propensity to spend and thus a AD curve compared to an economy with a lower net tax rate.

(Multiple Choice)

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Question 107

The aggregate supply (AS)curve is drawn with which variables on the axes of the graph?

(Multiple Choice)

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Question 108

Consider the net export function and the AE curve in a simple macro model with demand-determined output.What is the effect of an exogenous increase in the domestic price level?

(Multiple Choice)

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Question 109

Consider the AD/AS macro model.Suppose there is an increase in aggregate demand and,simultaneously,a decrease in aggregate supply.The result will be a

(Multiple Choice)

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Question 110

The AD curve relates the price level to which of the following?

(Multiple Choice)

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Question 111

The aggregate supply curve relates the price level to the quantity of output that firms would like to produce and sell,given the assumption that

(Multiple Choice)

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Question 112

Consider the basic AD/AS model.If firms' unit costs remained constant as firms increased their output levels,this would lead to a

(Multiple Choice)

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Question 113

Which of the following would likely cause an upward parallel shift in the AE curve and a rightward shift in the AD curve?

(Multiple Choice)

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Question 114

An exogenous fall in the domestic price level causes an increase in real wealth and

(Multiple Choice)

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Question 115

The aggregate supply curve tends to be relatively steep when GDP is above potential output because firms are operating above ,and are rising rapidly.

(Multiple Choice)

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Question 116

Other things being equal,an exogenous fall in the domestic price level leads to a rise in private-sector wealth.As a result,there is

(Multiple Choice)

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Question 117

Which of the following correctly describes one reason why the aggregate demand (AD)curve slopes downward?

(Multiple Choice)

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Question 118

The aggregate supply curve is usually assumed to get progressively steeper at relatively higher levels of output because

(Multiple Choice)

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Question 119

Consider the AD curve in the simple macro model.When there is a change in autonomous desired expenditure,the simple multiplier is equal to the

(Multiple Choice)

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Question 120

Showing 101 - 120 of 138

FIGURE 23-2 Refer to Figure 23-2.The shift from AS₁ to AS₂ shown in the diagram is referred to as a(n)

The economy's aggregate supply (AS)curve shows the relationship between the

Suppose there is a drop in the price of an important factor input.What will be the effect on the aggregate supply curve?

Suppose the economy is hit by a shock and we observe that the price level has decreased whereas real GDP has increased.We can conclude that this shock was

Other things being equal,an economy with a higher net tax rate will have a marginal propensity to spend and thus a AD curve compared to an economy with a lower net tax rate.

The aggregate supply (AS)curve is drawn with which variables on the axes of the graph?

Consider the net export function and the AE curve in a simple macro model with demand-determined output.What is the effect of an exogenous increase in the domestic price level?

Consider the AD/AS macro model.Suppose there is an increase in aggregate demand and,simultaneously,a decrease in aggregate supply.The result will be a

The AD curve relates the price level to which of the following?

The aggregate supply curve relates the price level to the quantity of output that firms would like to produce and sell,given the assumption that

Consider the basic AD/AS model.If firms' unit costs remained constant as firms increased their output levels,this would lead to a

Which of the following would likely cause an upward parallel shift in the AE curve and a rightward shift in the AD curve?

An exogenous fall in the domestic price level causes an increase in real wealth and

The aggregate supply curve tends to be relatively steep when GDP is above potential output because firms are operating above ,and are rising rapidly.

Other things being equal,an exogenous fall in the domestic price level leads to a rise in private-sector wealth.As a result,there is

Which of the following correctly describes one reason why the aggregate demand (AD)curve slopes downward?

The aggregate supply curve is usually assumed to get progressively steeper at relatively higher levels of output because

Consider the AD curve in the simple macro model.When there is a change in autonomous desired expenditure,the simple multiplier is equal to the

Economic Issues and Concepts

Economic Theories, data, and Graphs

Demand, supply, and Price

What Macroeconomics Is All About

The Measurement of National Income

The Simplest Short-Run Macro Model

Adding Government and Trade to the Simple Macro Model

From the Short Run to the Long Run: the Adjustment of Factor Prices

Long-Run Economic Growth

Money and Banking

Money, interest Rates, and Economic Activity

Monetary Policy in Canada

Inflation and Disinflation

Unemployment Fluctuations and the Nairu

Government Debt and Deficits

The Gains From International Trade

Trade Policy

Exchange Rates and the Balance of Payments

Filters

Exam 23: Real Gdp and the Price Level in the Short Run

FIGURE 23-2 Refer to Figure 23-2.The shift from AS1 to AS2 shown in the diagram is referred to as a(n)

The economy's aggregate supply (AS)curve shows the relationship between the

Suppose there is a drop in the price of an important factor input.What will be the effect on the aggregate supply curve?

Suppose the economy is hit by a shock and we observe that the price level has decreased whereas real GDP has increased.We can conclude that this shock was

Other things being equal,an economy with a higher net tax rate will have a ________ marginal propensity to spend and thus a ________ AD curve compared to an economy with a lower net tax rate.

The aggregate supply (AS)curve is drawn with which variables on the axes of the graph?

Consider the net export function and the AE curve in a simple macro model with demand-determined output.What is the effect of an exogenous increase in the domestic price level?

Consider the AD/AS macro model.Suppose there is an increase in aggregate demand and,simultaneously,a decrease in aggregate supply.The result will be a

The AD curve relates the price level to which of the following?

The aggregate supply curve relates the price level to the quantity of output that firms would like to produce and sell,given the assumption that

Consider the basic AD/AS model.If firms' unit costs remained constant as firms increased their output levels,this would lead to a

Which of the following would likely cause an upward parallel shift in the AE curve and a rightward shift in the AD curve?

An exogenous fall in the domestic price level causes an increase in real wealth and

The aggregate supply curve tends to be relatively steep when GDP is above potential output because firms are operating above ________,and ________ are rising rapidly.

Other things being equal,an exogenous fall in the domestic price level leads to a rise in private-sector wealth.As a result,there is

Which of the following correctly describes one reason why the aggregate demand (AD)curve slopes downward?

The aggregate supply curve is usually assumed to get progressively steeper at relatively higher levels of output because

Consider the AD curve in the simple macro model.When there is a change in autonomous desired expenditure,the simple multiplier is equal to the

Economic Issues and Concepts

Economic Theories, data, and Graphs

Demand, supply, and Price

What Macroeconomics Is All About

The Measurement of National Income

The Simplest Short-Run Macro Model

Adding Government and Trade to the Simple Macro Model

From the Short Run to the Long Run: the Adjustment of Factor Prices

Long-Run Economic Growth

Money and Banking

Money, interest Rates, and Economic Activity

Monetary Policy in Canada

Inflation and Disinflation

Unemployment Fluctuations and the Nairu

Government Debt and Deficits

The Gains From International Trade

Trade Policy

Exchange Rates and the Balance of Payments

Filters

FIGURE 23-2 Refer to Figure 23-2.The shift from AS₁ to AS₂ shown in the diagram is referred to as a(n)

Other things being equal,an economy with a higher net tax rate will have a marginal propensity to spend and thus a AD curve compared to an economy with a lower net tax rate.

The aggregate supply curve tends to be relatively steep when GDP is above potential output because firms are operating above ,and are rising rapidly.