Question 1

Which of the following shifts the short-run aggregate supply left?

Accepted Answer

A) an increase in price expectations 
B) an increase in the price level 
C) a decrease in the money supply 
D) a decrease in the price of oil 
A) an increase in price expectations 
B) an increase in the price level 
C) a decrease in the money supply 
D) a decrease in the price of oil

Question 2

Figure 14-1
  
-Refer to the Figure 14-1.If the economy is at A and there is a fall in aggregate demand,what happens to the economy in the short run?

Accepted Answer

A) It stays at A. 
B) It moves to B. 
C) It moves to C. 
D) It moves to D. 
A) It stays at A. 
B) It moves to B. 
C) It moves to C. 
D) It moves to D.

Question 3

Which of the following does real GDP measure?

Accepted Answer

A) the dollar value of all goods 
B) economic activity and income 
C) primarily long-run trends 
D) profitability of all companies in the economy 
A) the dollar value of all goods 
B) economic activity and income 
C) primarily long-run trends 
D) profitability of all companies in the economy

Question 4

Changes in the price level affect which of the following components of aggregate demand?

Accepted Answer

A) only consumption and investment 
B) only consumption and net exports 
C) only consumption 
D) consumption, investment, and net exports 
A) only consumption and investment 
B) only consumption and net exports 
C) only consumption 
D) consumption, investment, and net exports

Question 5

Which of the following did NOT happen during the onset of the Great Depression?

Accepted Answer

A) The money supply fell as households took money out of banks. 
B) The Bank of Canada decreased the bank rate. 
C) The real GDP per person fell about 30 percent. 
D) Bankers began holding greater reserves. 
A) The money supply fell as households took money out of banks. 
B) The Bank of Canada decreased the bank rate. 
C) The real GDP per person fell about 30 percent. 
D) Bankers began holding greater reserves.

Question 6

Which of the following is consistent with an increase in the quantity of output supplied,according to the misperceptions theory?

Accepted Answer

A) The price level increases less than expected so that firms believe the relative price of their output has increased. 
B) The price level increases less than expected so that firms believe the relative price of their output has decreased. 
C) The price level increases more than expected so that firms believe the relative price of their output has increased. 
D) The price level increases more than expected so that firms believe the relative price of their output has decreased. 
A) The price level increases less than expected so that firms believe the relative price of their output has increased. 
B) The price level increases less than expected so that firms believe the relative price of their output has decreased. 
C) The price level increases more than expected so that firms believe the relative price of their output has increased. 
D) The price level increases more than expected so that firms believe the relative price of their output has decreased.

Which of the following shifts the short-run aggregate supply left?

Figure 14-1 -Refer to the Figure 14-1.If the economy is at A and there is a fall in aggregate demand,what happens to the economy in the short run?

Which of the following does real GDP measure?

Changes in the price level affect which of the following components of aggregate demand?

Which of the following did NOT happen during the onset of the Great Depression?

Which of the following is consistent with an increase in the quantity of output supplied,according to the misperceptions theory?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains from Trade

The Market Forces of Supply and Demand (PART 1)

The Market Forces of Supply and Demand (PART 2)

Measuring a Nation's Income

Measuring the Cost of Living

Production and Growth

Saving,Investment,and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff between Inflation and Unemployment

Five Debates over Macroeconomic Policy

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Exam 14: Aggregate Demand and Aggregate Supply

Which of the following shifts the short-run aggregate supply left?

Figure 14-1 -Refer to the Figure 14-1.If the economy is at A and there is a fall in aggregate demand,what happens to the economy in the short run?

Which of the following does real GDP measure?

Changes in the price level affect which of the following components of aggregate demand?

Which of the following did NOT happen during the onset of the Great Depression?

Which of the following is consistent with an increase in the quantity of output supplied,according to the misperceptions theory?

Ten Principles of Economics

Thinking Like an Economist

Interdependence and the Gains from Trade

The Market Forces of Supply and Demand (PART 1)

The Market Forces of Supply and Demand (PART 2)

Measuring a Nation's Income

Measuring the Cost of Living

Production and Growth

Saving,Investment,and the Financial System

Unemployment and Its Natural Rate

The Monetary System

Money Growth and Inflation

Open-Economy Macroeconomics: Basic Concepts

A Macroeconomic Theory of the Small Open Economy

The Influence of Monetary and Fiscal Policy on Aggregate Demand

The Short-Run Tradeoff between Inflation and Unemployment

Five Debates over Macroeconomic Policy

Filters