Question 1

The aggregate supply curve will be vertical when:

Accepted Answer

A) output can be increased without an increase in the price level. 
B) the economy is operating at full-employment capacity. 
C) output and price level rise together. 
D) the aggregate demand curve is shifting to the left. 
E) aggregate demand is absent. 
A) output can be increased without an increase in the price level. 
B) the economy is operating at full-employment capacity. 
C) output and price level rise together. 
D) the aggregate demand curve is shifting to the left. 
E) aggregate demand is absent.

Question 2

The aggregate demand curve shifts due to changes in consumption expenditures, investment expenditures government spending, and net exports.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following would shift the aggregate demand curve to the left?

Accepted Answer

A) An increase in exports. 
B) An increase in investment. 
C) An increase in government spending. 
D) A decrease in government spending. 
A) An increase in exports. 
B) An increase in investment. 
C) An increase in government spending. 
D) A decrease in government spending.

Question 4

An increase in the per unit costs of production within an economy will cause the aggregate supply curve to shift to the right.

Accepted Answer

A) True 
 B)False

Question 5

Exhibit 10-4 Aggregate supply and demand curves   As the economy moves to the right in Exhibit 10-4 along the upward-sloping aggregate supply curve the:

Accepted Answer

A) unemployment rate rises. 
B) unemployment rate falls. 
C) inflation rate falls. 
D) none of these. 
A) unemployment rate rises. 
B) unemployment rate falls. 
C) inflation rate falls. 
D) none of these.

Question 6

Exhibit 10-4 Aggregate supply and demand curves   As the aggregate demand curve shifts from AD1 to AD2 in Exhibit 10-4, the economy experiences:

Accepted Answer

A) cost-push inflation. 
B) demand-pull inflation. 
C) wage-push inflation. 
D) hyperinflation. 
A) cost-push inflation. 
B) demand-pull inflation. 
C) wage-push inflation. 
D) hyperinflation.

Question 7

Along the Keynesian range of the aggregate supply curve, higher aggregate demand fails to stimulate output and only causes inflation.

Accepted Answer

A) True 
 B)False

The aggregate supply curve will be vertical when:

The aggregate demand curve shifts due to changes in consumption expenditures, investment expenditures government spending, and net exports.

Which of the following would shift the aggregate demand curve to the left?

An increase in the per unit costs of production within an economy will cause the aggregate supply curve to shift to the right.

Exhibit 10-4 Aggregate supply and demand curves As the economy moves to the right in Exhibit 10-4 along the upward-sloping aggregate supply curve the:

Exhibit 10-4 Aggregate supply and demand curves As the aggregate demand curve shifts from AD₁ to AD₂ in Exhibit 10-4, the economy experiences:

Along the Keynesian range of the aggregate supply curve, higher aggregate demand fails to stimulate output and only causes inflation.

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Gross Domestic Product

Business Cycles and Unemployment

Inflation

The Keynesian Model

The Keynesian Model in Action

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

The Phillips Curve and Expectations Theory

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Applying Graphs to Economics

Consumer Surplus, Producer Surplus, and Market Efficiency

the Self-Correcting Aggregate Demand and Supply Model

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

Filters

Exam 10: Aggregate Demand and Supply

The aggregate supply curve will be vertical when:

The aggregate demand curve shifts due to changes in consumption expenditures, investment expenditures government spending, and net exports.

Which of the following would shift the aggregate demand curve to the left?

An increase in the per unit costs of production within an economy will cause the aggregate supply curve to shift to the right.

Exhibit 10-4 Aggregate supply and demand curves As the economy moves to the right in Exhibit 10-4 along the upward-sloping aggregate supply curve the:

Exhibit 10-4 Aggregate supply and demand curves As the aggregate demand curve shifts from AD1 to AD2 in Exhibit 10-4, the economy experiences:

Along the Keynesian range of the aggregate supply curve, higher aggregate demand fails to stimulate output and only causes inflation.

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Gross Domestic Product

Business Cycles and Unemployment

Inflation

The Keynesian Model

The Keynesian Model in Action

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Monetary Policy

The Phillips Curve and Expectations Theory

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Applying Graphs to Economics

Consumer Surplus, Producer Surplus, and Market Efficiency

the Self-Correcting Aggregate Demand and Supply Model

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

Filters

Exhibit 10-4 Aggregate supply and demand curves As the aggregate demand curve shifts from AD₁ to AD₂ in Exhibit 10-4, the economy experiences: