Exam 9: Aan Introduction to Basic Macroeconomic Markets

Use the figure below to answer the following question(s). Figure 9-2 -When an economy is experiencing the aggregate demand and supply conditions depicted in Figure 9-2,

If the actual price level exceeds the expected price level reflected in long-term contracts,

Suppose people expect inflation to be 3 percent during the next several years.When the real interest rate is 5 percent,the money,or nominal interest rate,will be

If the actual price level exceeds the expected price level reflected in long-term contracts,

The money interest rate may be a misleading indicator of real borrowing costs when

Other things constant,an increase in the expected inflation rate will

Use the figure below to answer the following question(s). Figure 9-2 -Which of the following is true for the economy depicted in Figure 9-2?

As the real interest rate in the domestic loanable funds market increases,

People anticipate inflation will be 3 percent during the next several years.If this is true,when the real interest rate is 4 percent,the money interest rate will be

When equilibrium is present in the foreign exchange market,which of the following will tend to be in balance?

Which of the following accurately indicates the relationship between the short-run and long-run aggregate supply curves?

For most firms in the economy,the largest part of resource costs is the cost of

(I)Fiscal policy involves altering government tax and spending policies. (II)Monetary policy encompasses those actions that alter the money supply.

When an economy is in long run equilibrium,

The change in the aggregate quantity of goods and services demanded in the U.S.is based on the logic that as the price level falls,

When the actual GDP equals the full-employment level of GDP,the

If net exports are positive,then

An increase in the real interest rate will

Monetary policy can be most accurately described as

Other things the same,an increase in the price level induces people to hold