Question 1

The best example of recessions being close to each other in the United States can be found in the ​

Accepted Answer

A) ​1980s. 
B) ​1970s. 
C) ​1990s. 
D) ​2000s. 
A) ​1980s. 
B) ​1970s. 
C) ​1990s. 
D) ​2000s.

Question 2

The aggregate quantity of goods and services demanded changes as the price level falls because

Accepted Answer

A) real wealth falls, interest rates rise, and the dollar appreciates. 
B) real wealth falls, interest rates rise, and the dollar depreciates. 
C) real wealth rises, interest rates fall, and the dollar appreciates. 
D) real wealth rises, interest rates fall, and the dollar depreciates. 
A) real wealth falls, interest rates rise, and the dollar appreciates. 
B) real wealth falls, interest rates rise, and the dollar depreciates. 
C) real wealth rises, interest rates fall, and the dollar appreciates. 
D) real wealth rises, interest rates fall, and the dollar depreciates.

Question 3

When the money supply decreases

Accepted Answer

A) interest rates fall and so aggregate demand shifts right. 
B) interest rates fall and so aggregate demand shifts left. 
C) interest rates rise and so aggregate demand shifts right. 
D) interest rates rise and so aggregate demand shifts left. 
A) interest rates fall and so aggregate demand shifts right. 
B) interest rates fall and so aggregate demand shifts left. 
C) interest rates rise and so aggregate demand shifts right. 
D) interest rates rise and so aggregate demand shifts left.

Question 4

Economic expansions in Europe and China would cause

Accepted Answer

A) the U.S. price level and real GDP to rise. 
B) the U.S. price level and real GDP to fall. 
C) the U.S. price level to rise and real GDP to fall. 
D) the U.S. price level to fall and real GDP to rise. 
A) the U.S. price level and real GDP to rise. 
B) the U.S. price level and real GDP to fall. 
C) the U.S. price level to rise and real GDP to fall. 
D) the U.S. price level to fall and real GDP to rise.

Question 5

A candidate for political office announces the following policies which, she says, economics clearly demonstrates will lead to higher output in the long run: 1. increase immigration from abroad 2. make trade more open between the US and other countries.

Accepted Answer

A) 1 and 2 both shift long-run aggregate supply right. 
B) 1 and 2 both shift long-run aggregate supply left. 
C) 1 shifts long-run aggregate supply right, 2 shifts long-run aggregate supply left. 
D) 1 shifts long-run aggregate supply left, 2 shifts long-run aggregate supply right. 
A) 1 and 2 both shift long-run aggregate supply right. 
B) 1 and 2 both shift long-run aggregate supply left. 
C) 1 shifts long-run aggregate supply right, 2 shifts long-run aggregate supply left. 
D) 1 shifts long-run aggregate supply left, 2 shifts long-run aggregate supply right.

Question 6

In October 2009, the official unemployment rate rose to ​

Accepted Answer

A) ​10%. 
B) ​8%. 
C) ​6% 
D) ​4%. 
A) ​10%. 
B) ​8%. 
C) ​6% 
D) ​4%.

Question 7

Illustrate the classical analysis of growth and inflation with aggregate demand and long-run aggregate supply curves.

Accepted Answer

See graph. @#IMG-DLM& Over time, technological adv

Question 8

Which of the following shifts aggregate demand to the left?

Accepted Answer

A) The price level rises. 
B) Interest rates fall. 
C) The dollar depreciates for some reason other than a change in the price level. 
D) Stock prices fall for some reason other than a change in the price level. 
A) The price level rises. 
B) Interest rates fall. 
C) The dollar depreciates for some reason other than a change in the price level. 
D) Stock prices fall for some reason other than a change in the price level.

Question 9

The aggregate-demand curve

Accepted Answer

A) has a slope that is explained in the same way as the slope of the demand curve for a particular product. 
B) is vertical in the long run. 
C) shows an inverse relation between the price level and the quantity of all goods and services demanded. 
D) All of the above are correct. 
A) has a slope that is explained in the same way as the slope of the demand curve for a particular product. 
B) is vertical in the long run. 
C) shows an inverse relation between the price level and the quantity of all goods and services demanded. 
D) All of the above are correct.

Question 10

If output is above its natural rate, then according to sticky-wage theory

Accepted Answer

A) workers and firms will strike bargains for lower wages. In response to the lower wages firms will produce less at any given price level. 
B) workers and firms will strike bargains for lower wages. In response to the lower wages firms will produce more at any given price level. 
C) workers will strike bargains for higher wages. In response to the higher wages firms will produce less at any given price level. 
D) workers and firms will strike bargains for higher wages. In response to the higher wages firms will produce more at any given price level. 
A) workers and firms will strike bargains for lower wages. In response to the lower wages firms will produce less at any given price level. 
B) workers and firms will strike bargains for lower wages. In response to the lower wages firms will produce more at any given price level. 
C) workers will strike bargains for higher wages. In response to the higher wages firms will produce less at any given price level. 
D) workers and firms will strike bargains for higher wages. In response to the higher wages firms will produce more at any given price level.

Question 11

Which of the following did the Fed do during the recession of 2008-2009?

Accepted Answer

A) lowered the federal funds rate and sold securities and loans 
B) lowered the federal funds rate and purchased securities and loans 
C) raised the federal funds rate and sold securities and loans 
D) raised the federal funds rate and purchased securities and loans 
A) lowered the federal funds rate and sold securities and loans 
B) lowered the federal funds rate and purchased securities and loans 
C) raised the federal funds rate and sold securities and loans 
D) raised the federal funds rate and purchased securities and loans

Question 12

Figure 33-8.  
-Refer to Figure 33-8. Suppose the economy starts at Z. If changes occur that move the economy to a new short run equilibrium of P1 and Y1 , then it must be the case that

Accepted Answer

A) short run aggregate supply has decreased. 
B) short run aggregate supply has increased. 
C) aggregate demand has increased. 
D) aggregate demand has decreased. 
A) short run aggregate supply has decreased. 
B) short run aggregate supply has increased. 
C) aggregate demand has increased. 
D) aggregate demand has decreased.

Exam 33: Aggregate Demand and Aggregate Supply

The best example of recessions being close to each other in the United States can be found in the ​

The aggregate quantity of goods and services demanded changes as the price level falls because

When the money supply decreases

Economic expansions in Europe and China would cause

A candidate for political office announces the following policies which, she says, economics clearly demonstrates will lead to higher output in the long run: 1. increase immigration from abroad 2. make trade more open between the US and other countries.

In October 2009, the official unemployment rate rose to ​

Illustrate the classical analysis of growth and inflation with aggregate demand and long-run aggregate supply curves.

Which of the following shifts aggregate demand to the left?

The aggregate-demand curve

If output is above its natural rate, then according to sticky-wage theory

Which of the following did the Fed do during the recession of 2008-2009?

Figure 33-8. -Refer to Figure 33-8. Suppose the economy starts at Z. If changes occur that move the economy to a new short run equilibrium of P1 and Y1 , then it must be the case that

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains From Trade

The Market Forces of Supply and Demand

Elasticity and Its Application

Supply, Demand, and Government Policies

Consumers, Producers, and the Efficiency of Markets

Applications: the Costs of Taxation

Application: International Trade

Externalities

Public Goods and Common Resources

The Design of the Tax System

The Costs of Production

Firms in Competitive Markets

Monopoly

Monopolistic Competition

Oligopoly

The Markets for the Factors of Production

Earnings and Discrimination

Income Inequality and Poverty

The Theory of Consumer Choice

Frontiers in Microeconomics

Measuring a Nation S Income

Measuring the Cost of Living

Production and Growth

Saving, Investment, and the Financial System

Tools of Finance

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Open Economy

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff Between Inflation and Unemployment

Six Debates Over Macroeconomic Policy

Filters

The best example of recessions being close to each other in the United States can be found in the

In October 2009, the official unemployment rate rose to

Figure 33-8. -Refer to Figure 33-8. Suppose the economy starts at Z. If changes occur that move the economy to a new short run equilibrium of P₁ and Y₁ , then it must be the case that