Refer to the above diagram.The initial aggregate demand curve is AD1 and the initial aggregate supply curve is AS1.In the long run, demand-pull inflation is best shown as:

A) a shift of aggregate demand from AD1 to AD2 followed by a shift of aggregate supply from AS1 to AS2. B) a move from d to b to a. C) a shift of aggregate supply from AS1 to AS2 followed by a shift of aggregate demand from AD1 to AD2. D) a move from a to d. A) a shift of aggregate demand from AD1 to AD2 followed by a shift of aggregate supply from AS1 to AS2. B) a move from d to b to a. C) a shift of aggregate supply from AS1 to AS2 followed by a shift of aggregate demand from AD1 to AD2. D) a move from a to d. A

Refer to the above diagram.Point b on short-run Phillips Curve PC1represents a rate of:

A) inflation below the natural rate. B) inflation above the natural rate. C) unemployment above the natural rate. D) unemployment below the natural rate. A) inflation below the natural rate. B) inflation above the natural rate. C) unemployment above the natural rate. D) unemployment below the natural rate.

Refer to the above diagram.The initial aggregate demand curve is AD1 and the initial aggregate supply curve is AS1.If government offsets the decline in real output resulting from short-run cost-push inflation by increasing aggregate demand from AD1 to AD2:

A) real output will rise above Qf. B) the price level will rise from P1 to P2. C) it is possible that aggregate supply will shift rightward from AS2 because nominal wage demands will rise. D) the price level will rise from P2 to P3. A) real output will rise above Qf. B) the price level will rise from P1 to P2. C) it is possible that aggregate supply will shift rightward from AS2 because nominal wage demands will rise. D) the price level will rise from P2 to P3.

Refer to the above graph.Given that the economy is at an initial equilibrium where the AD1 and AS1 curves intersect, demand-pull inflation in the short run can best be represented by a shift from:

A) AS1 to AS3. B) AD1 to AD2. C) AS1 to AS2. D) AD2 to AD1. A) AS1 to AS3. B) AD1 to AD2. C) AS1 to AS2. D) AD2 to AD1.

Exam 16: B: Long-Run Macroeconomic Adjustments

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Refer to the above diagram.The initial aggregate demand curve is AD₁ and the initial aggregate supply curve is AS₁.In the long run, demand-pull inflation is best shown as:

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(Multiple Choice)

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Question 1

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The long-run aggregate supply curve is vertical:

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Question 2

Correct Answer:

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In the short run, demand-pull inflation will drive up the price level and increase real output; in the long run, only the price level will rise.

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(True/False)

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Question 3

Correct Answer:

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Long-run equilibrium occurs where:

(Multiple Choice)

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Question 4

Refer to the above diagram.Point b on short-run Phillips Curve PC₁represents a rate of:

(Multiple Choice)

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Question 5

Using Image 16.1 Global Perspective, which of the following countries had the highest misery index in 2014?

(Multiple Choice)

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Question 6

Refer to the above graph.The long-run relationship between the rate of inflation and the unemployment rate is represented by:

(Multiple Choice)

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Question 7

Refer to the above diagram for a specific economy.The curve on this graph is known as a:

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Question 8

The long-run Phillips Curve is vertical at the natural rate of unemployment.

(True/False)

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Question 9

One policy dilemma posed by cost-push inflation is that:

(Multiple Choice)

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Question 10

An "adverse aggregate supply shock" could result from:

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Question 11

Refer to the above diagram for a specific economy.The shape of this curve suggests that:

(Multiple Choice)

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Question 12

Refer to the above diagram.The initial aggregate demand curve is AD₁ and the initial aggregate supply curve is AS₁.If government offsets the decline in real output resulting from short-run cost-push inflation by increasing aggregate demand from AD₁ to AD₂:

(Multiple Choice)

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Question 13

In the long run, demand-pull inflation:

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Question 14

What will occur in the short run if there is cost-push inflation and if the government adopts a hands-off approach to it?

(Multiple Choice)

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Question 15

Using Image 16.1 Global Perspective, which of the following countries had the lowest misery index in 2014?

(Multiple Choice)

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Question 16

Refer to the above graph.Given that the economy is at an initial equilibrium where the AD₁ and AS₁ curves intersect, demand-pull inflation in the short run can best be represented by a shift from:

(Multiple Choice)

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Question 17

In the long-run firms respond to the lower profits by reducing their nominal wage increases.

(True/False)

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Question 18

The short-run aggregate supply curve shifts to the left when nominal wages rise in response to price level increases.

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Question 19

The short-run aggregate supply curve is upward-sloping because:

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Question 20

Showing 1 - 20 of 122

Exam 16: B: Long-Run Macroeconomic Adjustments

Refer to the above diagram.The initial aggregate demand curve is AD1 and the initial aggregate supply curve is AS1.In the long run, demand-pull inflation is best shown as:

The long-run aggregate supply curve is vertical:

In the short run, demand-pull inflation will drive up the price level and increase real output; in the long run, only the price level will rise.

Long-run equilibrium occurs where:

Refer to the above diagram.Point b on short-run Phillips Curve PC1represents a rate of:

Using Image 16.1 Global Perspective, which of the following countries had the highest misery index in 2014?

Refer to the above graph.The long-run relationship between the rate of inflation and the unemployment rate is represented by:

Refer to the above diagram for a specific economy.The curve on this graph is known as a:

The long-run Phillips Curve is vertical at the natural rate of unemployment.

One policy dilemma posed by cost-push inflation is that:

An "adverse aggregate supply shock" could result from:

Refer to the above diagram for a specific economy.The shape of this curve suggests that:

Refer to the above diagram.The initial aggregate demand curve is AD1 and the initial aggregate supply curve is AS1.If government offsets the decline in real output resulting from short-run cost-push inflation by increasing aggregate demand from AD1 to AD2:

In the long run, demand-pull inflation:

What will occur in the short run if there is cost-push inflation and if the government adopts a hands-off approach to it?

Using Image 16.1 Global Perspective, which of the following countries had the lowest misery index in 2014?

Refer to the above graph.Given that the economy is at an initial equilibrium where the AD1 and AS1 curves intersect, demand-pull inflation in the short run can best be represented by a shift from:

In the long-run firms respond to the lower profits by reducing their nominal wage increases.

The short-run aggregate supply curve shifts to the left when nominal wages rise in response to price level increases.

The short-run aggregate supply curve is upward-sloping because:

B: Limits, Alternatives, and Choices

A: - Limits, Alternatives, and Choices

B: The Market System and the Circular Flow

A: - The Market System and the Circular Flow

B: Demand, Supply, and Market Equilibrium

A: - Demand, Supply, and Market Equilibrium

B: Market Failures: Public Goods and Externalities

A: - Market Failures: Public Goods and Externalities

B: Governments Role and Government Failure

A: Governments Role and Government Failure

B: an Introduction to Macroeconomics

A: an Introduction to Macroeconomics

B: Measuring the Economys Output

A: Measuring the Economys Output

B: Economic Growth

A: Economic Growth

B: Business Cycles, Unemployment, and Inflation

A: Business Cycles, Unemployment, and Inflation

B: Basic Macroeconomic Relationships

A: Basic Macroeconomic Relationships

B: The Aggregate Expenditures Model

A: The Aggregate Expenditures Model

B: Aggregate Demand and Aggregate Supply

A: Aggregate Demand and Aggregate Supply

B: Fiscal Policy, Deficits, Surpluses, and Debt

A: Fiscal Policy, Deficits, Surpluses, and Debt

B: Money, Banking, and Money Creation

A: Money, Banking, and Money Creation

B: Interest Rates and Monetary Policy

A: Interest Rates and Monetary Policy

C: Financial Economics

A: Long-Run Macroeconomic Adjustments

A: International Trade

B: International Trade

A: The Balance of Payments and Exchange Rates

B: The Balance of Payments and Exchange Rates

The Economics of Developing Countries

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Refer to the above diagram.The initial aggregate demand curve is AD₁ and the initial aggregate supply curve is AS₁.In the long run, demand-pull inflation is best shown as:

Refer to the above diagram.Point b on short-run Phillips Curve PC₁represents a rate of:

Refer to the above diagram.The initial aggregate demand curve is AD₁ and the initial aggregate supply curve is AS₁.If government offsets the decline in real output resulting from short-run cost-push inflation by increasing aggregate demand from AD₁ to AD₂:

Refer to the above graph.Given that the economy is at an initial equilibrium where the AD₁ and AS₁ curves intersect, demand-pull inflation in the short run can best be represented by a shift from: