Question 1

If businesses expect future demand to increase, this will cause a:

Accepted Answer

A) movement down the aggregate demand curve. 
B) movement up the aggregate demand curve. 
C) rightward shift of the aggregate demand curve. 
D) leftward shift of the aggregate demand curve. 
A) movement down the aggregate demand curve. 
B) movement up the aggregate demand curve. 
C) rightward shift of the aggregate demand curve. 
D) leftward shift of the aggregate demand curve.

Question 2

An increase in the aggregate demand curve will, in the short run, change:

Accepted Answer

A) output but not price level. 
B) the price level but not output. 
C) both output and the price level. 
D) neither output nor the price level. 
A) output but not price level. 
B) the price level but not output. 
C) both output and the price level. 
D) neither output nor the price level.

Question 3

The repercussions that the money wealth and international effects have on aggregate production and aggregate expenditure cause the aggregate demand curve to become steeper than it would be without such repercussions.

Accepted Answer

A) True 
 B)False

If businesses expect future demand to increase, this will cause a:

An increase in the aggregate demand curve will, in the short run, change:

The repercussions that the money wealth and international effects have on aggregate production and aggregate expenditure cause the aggregate demand curve to become steeper than it would be without such repercussions.

Economics and Economic Reasoning

The Production Possibility Model, Trade, and Globalization

Economic Institutions

Supply and Demand

Using Supply and Demand

Comparative Advantage, Exchange Rates, and Globalization

International Trade Policy

Economic Growth, Business Cycles, and Unemployment

Measuring and Describing the Aggregate Economy

The Classical Long-Run Policy Model: Growth and Supply-Side Policies

The Financial Sector and the Economy

Monetary Policy

Financial Crises, Panics, and Unconventional Monetary Policy

Deficits and Debt: the Austerity Debate

The Fiscal Policy Dilemma

Jobs and Unemployment

Inflation, Deflation, and Macro Policy

International Financial Policy

Macro Policy in a Global Setting

Structural Stagnation and Globalization

Macro Policy in Developing Countries

Filters

Exam 26: The Keynesian Short-Run Policy Model: Demand-Side Policies

If businesses expect future demand to increase, this will cause a:

An increase in the aggregate demand curve will, in the short run, change:

The repercussions that the money wealth and international effects have on aggregate production and aggregate expenditure cause the aggregate demand curve to become steeper than it would be without such repercussions.

Economics and Economic Reasoning

The Production Possibility Model, Trade, and Globalization

Economic Institutions

Supply and Demand

Using Supply and Demand

Comparative Advantage, Exchange Rates, and Globalization

International Trade Policy

Economic Growth, Business Cycles, and Unemployment

Measuring and Describing the Aggregate Economy

The Classical Long-Run Policy Model: Growth and Supply-Side Policies

The Financial Sector and the Economy

Monetary Policy

Financial Crises, Panics, and Unconventional Monetary Policy

Deficits and Debt: the Austerity Debate

The Fiscal Policy Dilemma

Jobs and Unemployment

Inflation, Deflation, and Macro Policy

International Financial Policy

Macro Policy in a Global Setting

Structural Stagnation and Globalization

Macro Policy in Developing Countries

Filters