Exam 12: Aggregate Demand and Aggregate Supply

Use the following to answer questions: Figure: AD-AS Model I -(Figure: AD-AS Model I) Refer to Figure: AD-AS Model I. If the economy is at point X, the appropriate fiscal policy is to:

(Multiple Choice)

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Question 61

An increase in government spending on health care is likely to shift the _ curve to the _.

(Multiple Choice)

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Question 62

The aggregate demand curve shows that at higher price levels the quantity of aggregate output demanded will be less than at lower price levels.

(True/False)

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Question 63

Suppose that productivity increases as workers' health improves. This increase in productivity will:

(Multiple Choice)

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Question 64

Examples of fiscal policy do NOT include:

(Multiple Choice)

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Question 65

A decrease in energy prices will:

(Multiple Choice)

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Question 66

In the late 1970s, the U.S. economy slid to the _ along the aggregate _ curve.

(Multiple Choice)

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Question 67

Unexpectedly rising commodity prices lead to a _____ shock.

(Multiple Choice)

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Question 68

Use the following to answer questions: Figure: Inflationary and Recessionary Gaps -(Figure: Inflationary and Recessionary Gaps) Refer to Figure: Inflationary and Recessionary Gaps. If the economy is in short-run equilibrium at Y₁ in panel (a), the economy is in:

(Multiple Choice)

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Question 69

A graphical representation of the relationship between the total quantity of goods and services demanded and the price level is the:

(Multiple Choice)

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Question 70

Increasing the quantity of money in circulation shifts the _ curve to the _.

(Multiple Choice)

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Question 71

The economy is in short-run macroeconomic equilibrium when the quantity of aggregate output supplied is equal to the quantity of aggregate output demanded.

(True/False)

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Question 72

The interest rate effect is the tendency for changes in the price level to affect:

(Multiple Choice)

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Question 73

Reducing taxes in response to a recession is an example of _____ policy.

(Multiple Choice)

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Question 74

The long-run supply curve illustrates how the aggregate output supplied is _____ the aggregate price level.

(Multiple Choice)

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Question 75

Use the following to answer questions: Figure: Inflationary and Recessionary Gaps -(Figure: Inflationary and Recessionary Gaps) Refer to Figure: Inflationary and Recessionary Gaps. If the economy is in short-run equilibrium at Y₁ in panel (b), to return to potential output at Y_P policy makers should use:

(Multiple Choice)

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Question 76

A positive short-run aggregate supply shock increases aggregate output and the aggregate price level.

(True/False)

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Question 77

When the economy is in a recessionary gap, the government can improve economic outcomes by:

(Multiple Choice)

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Question 78

A(n) _____ would likely shift the short-run aggregate supply curve to the left.

(Multiple Choice)

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Question 79

Because the aggregate price level has no effect on aggregate output in the long run, the long-run aggregate supply curve is:

(Multiple Choice)

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Question 80

Showing 61 - 80 of 308

Use the following to answer questions: Figure: AD-AS Model I -(Figure: AD-AS Model I) Refer to Figure: AD-AS Model I. If the economy is at point X, the appropriate fiscal policy is to:

An increase in government spending on health care is likely to shift the _ curve to the _.

The aggregate demand curve shows that at higher price levels the quantity of aggregate output demanded will be less than at lower price levels.

Suppose that productivity increases as workers' health improves. This increase in productivity will:

Examples of fiscal policy do NOT include:

A decrease in energy prices will:

In the late 1970s, the U.S. economy slid to the _ along the aggregate _ curve.

Unexpectedly rising commodity prices lead to a _____ shock.

Use the following to answer questions: Figure: Inflationary and Recessionary Gaps -(Figure: Inflationary and Recessionary Gaps) Refer to Figure: Inflationary and Recessionary Gaps. If the economy is in short-run equilibrium at Y₁ in panel (a), the economy is in:

A graphical representation of the relationship between the total quantity of goods and services demanded and the price level is the:

Increasing the quantity of money in circulation shifts the _ curve to the _.

The economy is in short-run macroeconomic equilibrium when the quantity of aggregate output supplied is equal to the quantity of aggregate output demanded.

The interest rate effect is the tendency for changes in the price level to affect:

Reducing taxes in response to a recession is an example of _____ policy.

The long-run supply curve illustrates how the aggregate output supplied is _____ the aggregate price level.

A positive short-run aggregate supply shock increases aggregate output and the aggregate price level.

When the economy is in a recessionary gap, the government can improve economic outcomes by:

A(n) _____ would likely shift the short-run aggregate supply curve to the left.

Because the aggregate price level has no effect on aggregate output in the long run, the long-run aggregate supply curve is:

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

GDP and the CPI: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters

Exam 12: Aggregate Demand and Aggregate Supply

Use the following to answer questions: Figure: AD-AS Model I -(Figure: AD-AS Model I) Refer to Figure: AD-AS Model I. If the economy is at point X, the appropriate fiscal policy is to:

An increase in government spending on health care is likely to shift the _____ curve to the _____.

The aggregate demand curve shows that at higher price levels the quantity of aggregate output demanded will be less than at lower price levels.

Suppose that productivity increases as workers' health improves. This increase in productivity will:

Examples of fiscal policy do NOT include:

A decrease in energy prices will:

In the late 1970s, the U.S. economy slid to the _____ along the aggregate _____ curve.

Unexpectedly rising commodity prices lead to a _____ shock.

Use the following to answer questions: Figure: Inflationary and Recessionary Gaps -(Figure: Inflationary and Recessionary Gaps) Refer to Figure: Inflationary and Recessionary Gaps. If the economy is in short-run equilibrium at Y1 in panel (a), the economy is in:

A graphical representation of the relationship between the total quantity of goods and services demanded and the price level is the:

Increasing the quantity of money in circulation shifts the _____ curve to the _____.

The economy is in short-run macroeconomic equilibrium when the quantity of aggregate output supplied is equal to the quantity of aggregate output demanded.

The interest rate effect is the tendency for changes in the price level to affect:

Reducing taxes in response to a recession is an example of _____ policy.

The long-run supply curve illustrates how the aggregate output supplied is _____ the aggregate price level.

A positive short-run aggregate supply shock increases aggregate output and the aggregate price level.

When the economy is in a recessionary gap, the government can improve economic outcomes by:

A(n) _____ would likely shift the short-run aggregate supply curve to the left.

Because the aggregate price level has no effect on aggregate output in the long run, the long-run aggregate supply curve is:

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

Macroeconomics: the Big Picture

GDP and the CPI: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters

An increase in government spending on health care is likely to shift the _ curve to the _.

In the late 1970s, the U.S. economy slid to the _ along the aggregate _ curve.

Use the following to answer questions: Figure: Inflationary and Recessionary Gaps -(Figure: Inflationary and Recessionary Gaps) Refer to Figure: Inflationary and Recessionary Gaps. If the economy is in short-run equilibrium at Y₁ in panel (a), the economy is in:

Increasing the quantity of money in circulation shifts the _ curve to the _.