Question 1

The SAS curve shifts if there is a change in

Accepted Answer

A)  nominal GDP. 
B)  potential GDP. 
C)  real GDP. 
D)  the price level. 
A)  nominal GDP. 
B)  potential GDP. 
C)  real GDP. 
D)  the price level.

Question 2

A change in _________creates a movement along the aggregate demand curve but does not shift the aggregate demand curve.

Accepted Answer

A)  the price level 
B)  tax rates 
C)  fiscal policy 
D)  None of the above because they all shift the aggregate demand curve. 
A)  the price level 
B)  tax rates 
C)  fiscal policy 
D)  None of the above because they all shift the aggregate demand curve.

Question 3

-In the above figure, curve A is__________ the curve, curve B is the curve,__________  and curve C is the__________ 
Curve.

Accepted Answer

A)  aggregate demand; short-run aggregate supply; long-run aggregate supply 
B)  long-run aggregate supply; aggregate demand; short-run aggregate supply 
C)  long-run aggregate supply; short-run aggregate supply; aggregate demand 
D)  short-run aggregate supply; long-run aggregate supply; aggregate demand 
A)  aggregate demand; short-run aggregate supply; long-run aggregate supply 
B)  long-run aggregate supply; aggregate demand; short-run aggregate supply 
C)  long-run aggregate supply; short-run aggregate supply; aggregate demand 
D)  short-run aggregate supply; long-run aggregate supply; aggregate demand

Question 4

An increase in the money wage rate shifts the short-run aggregate supply curve ; an increase in technology shifts the long-run aggregate supply curve .

Accepted Answer

A)  leftward; leftward 
B)  rightward; rightward 
C)  rightward; leftward 
D)  leftward; rightward 
A)  leftward; leftward 
B)  rightward; rightward 
C)  rightward; leftward 
D)  leftward; rightward

Question 5

$$\begin{array}{l}
\text { Real GDP supplied }\
\begin{array} { | l | l | l | l | } 
\hline \text { Price level } & \begin{array} { l } 
\text { Real GDP } \
\text { demanded } \
\text { (dollars) }
\end{array} & \begin{array} { l } 
\text { Short run } \
\text { (dollars) }
\end{array} & \begin{array} { l } 
\text { Long run } \
\text { (dollars) }
\end{array} \
\hline 90 & 700 & 300 & 600 \
\hline 100 & 600 & 400 & 600 \
\hline 110 & 500 & 500 & 600 \
\hline 120 & 400 & 600 & 600 \
\hline
\end{array}
\end{array}$$
-The table above gives the aggregate demand and aggregate supply schedules in Lotus Land. With no changes in aggregate demand or long-run aggregate supply, in long-run macroeconomic equilibrium, the price level will be __________ and real GDP will be __________ .

Accepted Answer

A)  110; $500 
B)  120; $400 
C)  100; $600 
D)  90; $400 
A)  110; $500 
B)  120; $400 
C)  100; $600 
D)  90; $400

Question 6

-Suppose the economy is at point B. If firms expect profits will be higher in the future, to what point might the economyʹs move in the short run?

Accepted Answer

A)  It shifts to a point such as A. 
B)  It shifts to a point such as C. 
C)  It stays at point B. 
D)  None of the above answers are correct because it is the SAS curve that shifts, not the AD curve. 
A)  It shifts to a point such as A. 
B)  It shifts to a point such as C. 
C)  It stays at point B. 
D)  None of the above answers are correct because it is the SAS curve that shifts, not the AD curve.

Question 7

By using only the aggregate demand curve, we can determine

Accepted Answer

A)  both the price level and quantity of real GDP. 
B)  only the price level. 
C)  neither the price level nor the quantity of real GDP. 
D)  only the quantity of real GDP. 
A)  both the price level and quantity of real GDP. 
B)  only the price level. 
C)  neither the price level nor the quantity of real GDP. 
D)  only the quantity of real GDP.

Question 8

Moving along the aggregate demand curve, a decrease in the quantity of real GDP demanded is a result of

Accepted Answer

A)  an increase in income. 
B)  an increase in the price level. 
C)  a decrease in the price level. 
D)  a decrease in income. 
A)  an increase in income. 
B)  an increase in the price level. 
C)  a decrease in the price level. 
D)  a decrease in income.

Question 9

In 2008, Japanʹs government approved a $1 trillion fiscal stimulus plan comprised of both tax cuts and government expenditure increases. As a result,

Accepted Answer

A)  Japanʹs long-run aggregate supply curve shifted leftward. 
B)  Japanʹs aggregate demand curve shifted leftward. 
C)  Japanʹs aggregate demand curve shifted rightward. 
D)  Japanʹs aggregate supply curve shifted leftward. 
A)  Japanʹs long-run aggregate supply curve shifted leftward. 
B)  Japanʹs aggregate demand curve shifted leftward. 
C)  Japanʹs aggregate demand curve shifted rightward. 
D)  Japanʹs aggregate supply curve shifted leftward.

Question 10

-In the above figure, the shift from point C to point B might be the result of

Accepted Answer

A)  a decrease in the price level. 
B)  a decrease in government expenditures. 
C)  an increase in the quantity of money. 
D)  an increase in the price level. 
A)  a decrease in the price level. 
B)  a decrease in government expenditures. 
C)  an increase in the quantity of money. 
D)  an increase in the price level.

Question 11

A fall in the money wage rate shifts

Accepted Answer

A)  both the SAS and LAS curves leftward. 
B)  the SAS curve rightward but leaves the LAS curve unchanged. 
C)  the LAS curve rightward but leaves the SAS curve unchanged. 
D)  both the SAS and LAS curves rightward. 
A)  both the SAS and LAS curves leftward. 
B)  the SAS curve rightward but leaves the LAS curve unchanged. 
C)  the LAS curve rightward but leaves the SAS curve unchanged. 
D)  both the SAS and LAS curves rightward.

The SAS curve shifts if there is a change in

A change in _________creates a movement along the aggregate demand curve but does not shift the aggregate demand curve.

-In the above figure, curve A is the curve, curve B is the curve, and curve C is the__ Curve.

An increase in the money wage rate shifts the short-run aggregate supply curve ; an increase in technology shifts the long-run aggregate supply curve .

-Suppose the economy is at point B. If firms expect profits will be higher in the future, to what point might the economyʹs move in the short run?

By using only the aggregate demand curve, we can determine

Moving along the aggregate demand curve, a decrease in the quantity of real GDP demanded is a result of

In 2008, Japanʹs government approved a $1 trillion fiscal stimulus plan comprised of both tax cuts and government expenditure increases. As a result,

-In the above figure, the shift from point C to point B might be the result of

A fall in the money wage rate shifts

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Expenditure Multipliers: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

Exam 10: Aggregate Supply and Aggregate Demand

The SAS curve shifts if there is a change in

A change in _________creates a movement along the aggregate demand curve but does not shift the aggregate demand curve.

-In the above figure, curve A is__________ the curve, curve B is the curve,__________ and curve C is the__________ Curve.

An increase in the money wage rate shifts the short-run aggregate supply curve ; an increase in technology shifts the long-run aggregate supply curve .

-Suppose the economy is at point B. If firms expect profits will be higher in the future, to what point might the economyʹs move in the short run?

By using only the aggregate demand curve, we can determine

Moving along the aggregate demand curve, a decrease in the quantity of real GDP demanded is a result of

In 2008, Japanʹs government approved a $1 trillion fiscal stimulus plan comprised of both tax cuts and government expenditure increases. As a result,

-In the above figure, the shift from point C to point B might be the result of

A fall in the money wage rate shifts

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Expenditure Multipliers: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

-In the above figure, curve A is the curve, curve B is the curve, and curve C is the__ Curve.