Question 1

Which of the following would likely cause the aggregate demand curve to shift to the right?

Accepted Answer

A)  Increased income taxes 
B)  Increased firm confidence 
C)  Decreased government spending 
D)  Increase in the aggregate price level 
A)  Increased income taxes 
B)  Increased firm confidence 
C)  Decreased government spending 
D)  Increase in the aggregate price level

Question 2

Suppose the Midwest experiences a major drought, decreasing yields of corn, a major input in gasoline, and an influx of processed foods. How would this be represented in the AD/AS model?

Accepted Answer

A)  The long-run aggregate supply curve would shift to the left. 
B)  The long-run aggregate supply curve would shift to the right. 
C)  The short-run aggregate supply curve would shift to the left. 
D)  The short-run aggregate supply curve would shift to the right. 
A)  The long-run aggregate supply curve would shift to the left. 
B)  The long-run aggregate supply curve would shift to the right. 
C)  The short-run aggregate supply curve would shift to the left. 
D)  The short-run aggregate supply curve would shift to the right.

Question 3

Stagflation refers to a situation in which an economy is experiencing _______ economic growth and _______ inflation.

Accepted Answer

A)  high; high 
B)  low; low 
C)  high; low 
D)  low; high 
A)  high; high 
B)  low; low 
C)  high; low 
D)  low; high

Question 4

A supply curve that slopes upward reflects:

Accepted Answer

A)  aggregate supply in the short run. 
B)  aggregate supply in the long run. 
C)  an individual firm's supply curve. 
D)  an individual industry's supply curve. 
A)  aggregate supply in the short run. 
B)  aggregate supply in the long run. 
C)  an individual firm's supply curve. 
D)  an individual industry's supply curve.

Question 5

Which of the following is a component of aggregate demand?

Accepted Answer

A)  Consumption 
B)  Income 
C)  Taxes 
D)  Transfer payments 
A)  Consumption 
B)  Income 
C)  Taxes 
D)  Transfer payments

Question 6

A decrease in consumer confidence will cause:

Accepted Answer

A)  a downward movement along the aggregate demand curve. 
B)  the aggregate demand curve to shift to the right. 
C)  the aggregate demand curve to shift to the left. 
D)  an upward movement along the aggregate demand curve. 
A)  a downward movement along the aggregate demand curve. 
B)  the aggregate demand curve to shift to the right. 
C)  the aggregate demand curve to shift to the left. 
D)  an upward movement along the aggregate demand curve.

Which of the following would likely cause the aggregate demand curve to shift to the right?

Suppose the Midwest experiences a major drought, decreasing yields of corn, a major input in gasoline, and an influx of processed foods. How would this be represented in the AD/AS model?

Stagflation refers to a situation in which an economy is experiencing _ economic growth and _ inflation.

A supply curve that slopes upward reflects:

Which of the following is a component of aggregate demand?

A decrease in consumer confidence will cause:

Economicsand Life

Specializationand Exchange

Markets

Elasticity

Efficiency

Governmentintervention

Measuringgdp

Thecost of Living

Unemploymentand the Labor Market

Economicgrowth

Aggregateexpenditures

Fiscalpolicy

Thebasics of Finance

Moneyand the Monetary System

Inflation

Financialcrisis

Open-Marketmacroeconomics

Developmenteconomics

Filters

Exam 12: Aggregatedemand and Aggregate Supply

Which of the following would likely cause the aggregate demand curve to shift to the right?

Suppose the Midwest experiences a major drought, decreasing yields of corn, a major input in gasoline, and an influx of processed foods. How would this be represented in the AD/AS model?

Stagflation refers to a situation in which an economy is experiencing _______ economic growth and _______ inflation.

A supply curve that slopes upward reflects:

Which of the following is a component of aggregate demand?

A decrease in consumer confidence will cause:

Economicsand Life

Specializationand Exchange

Markets

Elasticity

Efficiency

Governmentintervention

Measuringgdp

Thecost of Living

Unemploymentand the Labor Market

Economicgrowth

Aggregateexpenditures

Fiscalpolicy

Thebasics of Finance

Moneyand the Monetary System

Inflation

Financialcrisis

Open-Marketmacroeconomics

Developmenteconomics

Filters

Stagflation refers to a situation in which an economy is experiencing _ economic growth and _ inflation.