Question 1

If a change in wealth is induced by a change in the price level,then this would be shown as a

Accepted Answer

A) movement along the aggregate demand curve. 
B) shift of the aggregate demand curve due to the substitution effects. 
C) movement along the aggregate demand curve due to the substitution effects. 
D) movement along the aggregate supply curve. 
E) shift of the aggregate demand curve due to the wealth effect. 
A) movement along the aggregate demand curve. 
B) shift of the aggregate demand curve due to the substitution effects. 
C) movement along the aggregate demand curve due to the substitution effects. 
D) movement along the aggregate supply curve. 
E) shift of the aggregate demand curve due to the wealth effect.

Question 2

Suppose there is an increase in the quantity of capital.As a result,the SAS

Accepted Answer

A) and the LAS curves both shift leftward. 
B) and the LAS curves both shift rightward. 
C) curve does not shift but the LAS curve shifts rightward. 
D) curve does not shift but the LAS curve shifts leftward. 
E) shifts rightward, but the LAS curve does not shift. 
A) and the LAS curves both shift leftward. 
B) and the LAS curves both shift rightward. 
C) curve does not shift but the LAS curve shifts rightward. 
D) curve does not shift but the LAS curve shifts leftward. 
E) shifts rightward, but the LAS curve does not shift.

Question 3

Economic growth results when there are increases in

Accepted Answer

A) aggregate demand. 
B) the real wage rate. 
C) long-run aggregate supply. 
D) the inflationary gap. 
E) short-run aggregate supply resulting from falling money wage rates and falling factor prices. 
A) aggregate demand. 
B) the real wage rate. 
C) long-run aggregate supply. 
D) the inflationary gap. 
E) short-run aggregate supply resulting from falling money wage rates and falling factor prices.

Question 4

Use the figure below to answer the following questions.
   
Figure 26.1.1
-Refer to Figure 26.1.1.Which graph illustrates what happens when factor prices rise?

Accepted Answer

A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) (a)and (b) 
A) (a) 
B) (b) 
C) (c) 
D) (d) 
E) (a)and (b)

If a change in wealth is induced by a change in the price level,then this would be shown as a

Suppose there is an increase in the quantity of capital.As a result,the SAS

Economic growth results when there are increases in

Use the figure below to answer the following questions. Figure 26.1.1 -Refer to Figure 26.1.1.Which graph illustrates what happens when factor prices rise?

What Is Economics?

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

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

Canadian Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 26: Aggregate Supply and Aggregate Demand

If a change in wealth is induced by a change in the price level,then this would be shown as a

Suppose there is an increase in the quantity of capital.As a result,the SAS

Economic growth results when there are increases in

Use the figure below to answer the following questions. Figure 26.1.1 -Refer to Figure 26.1.1.Which graph illustrates what happens when factor prices rise?

What Is Economics?

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

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

Canadian Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters