Question 1

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

Accepted Answer

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

Question 2

When deriving the aggregate demand (AD) curve from the aggregate expenditure model, an increase in Canadian product prices would cause:

Accepted Answer

A) an increase in the value of household wealth and reduced consumption expenditures. 
B) an increase in interest rates and lower investment expenditures. 
C) an increase in exports and imports. 
D) an increase in Canadian resource prices and an increase in aggregate supply. 
A) an increase in the value of household wealth and reduced consumption expenditures. 
B) an increase in interest rates and lower investment expenditures. 
C) an increase in exports and imports. 
D) an increase in Canadian resource prices and an increase in aggregate supply.

Question 3

In deriving the aggregate demand curve from the aggregate expenditures model we note that:

Accepted Answer

A) the wealth or real balances effect is irrelevant to both models. 
B) a change in the price level will have no impact on the aggregate expenditures schedule. 
C) an increase (decrease) in the price level shifts the aggregate expenditures schedule upward (downward). 
D) an increase (decrease) in the price level shifts the aggregate expenditures schedule downward (upward). 
A) the wealth or real balances effect is irrelevant to both models. 
B) a change in the price level will have no impact on the aggregate expenditures schedule. 
C) an increase (decrease) in the price level shifts the aggregate expenditures schedule upward (downward). 
D) an increase (decrease) in the price level shifts the aggregate expenditures schedule downward (upward).

Exam 12: B: Aggregate Demand and Aggregate Supply

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

When deriving the aggregate demand (AD) curve from the aggregate expenditure model, an increase in Canadian product prices would cause:

In deriving the aggregate demand curve from the aggregate expenditures model we note that:

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

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

B: 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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