Question 1

Identify the correct statement.

Accepted Answer

A)  Investment is positively related to the interest rate. 
B)  Investment spending in an economy is stimulated by new production technology. 
C)  Investment is positively related to excess capacity. 
D)  Investment spending is positively related to the cost of capital goods. 
E)  Investment is negatively related to the rate of government spending. 
A)  Investment is positively related to the interest rate. 
B)  Investment spending in an economy is stimulated by new production technology. 
C)  Investment is positively related to excess capacity. 
D)  Investment spending is positively related to the cost of capital goods. 
E)  Investment is negatively related to the rate of government spending.

Question 2

A lower domestic price level tends to:

Accepted Answer

A)  reduce aggregate expenditures and lower the aggregate quantity of goods and services supplied. 
B)  reduce aggregate expenditures and lower aggregate demand. 
C)  reduce aggregate expenditures and raise aggregate demand. 
D)  increase aggregate expenditures and raise the aggregate quantity of goods and services demanded. 
E)  increase aggregate expenditure on foreign goods and lower net exports. 
A)  reduce aggregate expenditures and lower the aggregate quantity of goods and services supplied. 
B)  reduce aggregate expenditures and lower aggregate demand. 
C)  reduce aggregate expenditures and raise aggregate demand. 
D)  increase aggregate expenditures and raise the aggregate quantity of goods and services demanded. 
E)  increase aggregate expenditure on foreign goods and lower net exports.

Identify the correct statement.

A lower domestic price level tends to:

The Wealth of Nations: Ownership and Economic Freedom

Scarcity and Opportunity Costs

The Market and Price System

The Aggregate Economy

National Income Accounting

An Introduction to the Foreign Exchapterange Market and the Balance of Payments

Unemployment and Inflation

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Economic Growth

Development Economics

Globalization

World Trade Equilibrium

International Trade Restrictions

Exchapterange Rates and Financial Links Between Countries

Filters

Exam 8: Macroeconomic Equilibrium: Aggregate Demand and Supply

Identify the correct statement.

A lower domestic price level tends to:

The Wealth of Nations: Ownership and Economic Freedom

Scarcity and Opportunity Costs

The Market and Price System

The Aggregate Economy

National Income Accounting

An Introduction to the Foreign Exchapterange Market and the Balance of Payments

Unemployment and Inflation

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Economic Growth

Development Economics

Globalization

World Trade Equilibrium

International Trade Restrictions

Exchapterange Rates and Financial Links Between Countries

Filters