Question 1

An increase in investment causes the price level to ________ in the short run and ________ in the long run.

Accepted Answer

A)  decrease; increase 
B)  decrease; decrease further 
C)  increase; increase further 
D)  increase; decrease 
A)  decrease; increase 
B)  decrease; decrease further 
C)  increase; increase further 
D)  increase; decrease C

Question 2

What did FedEx Middle East do to meet the challenge of the global recession in 2009?

Accepted Answer

A)  Increase costs and offer higher price options for customers 
B)  Increase costs and offer lower price options for customers 
C)  Cut costs and offer higher price options for customers 
D)  Cut costs and offer lower price options for customers 
A)  Increase costs and offer higher price options for customers 
B)  Increase costs and offer lower price options for customers 
C)  Cut costs and offer higher price options for customers 
D)  Cut costs and offer lower price options for customers D

Question 3

Spending on the armed forces is categorized as government purchases. How do increases in spending on wars affect the aggregate demand curve?

Accepted Answer

A)  They shift the aggregate demand curve to the left. 
B)  They shift the aggregate demand curve to the right. 
C)  They move the economy down along a stationary aggregate demand curve. 
D)  They move the economy up along a stationary aggregate demand curve. 
A)  They shift the aggregate demand curve to the left. 
B)  They shift the aggregate demand curve to the right. 
C)  They move the economy down along a stationary aggregate demand curve. 
D)  They move the economy up along a stationary aggregate demand curve. B

Question 4

By mid -2008, U.S. real GDP continued to grow despite increases in oil prices from about $34 per barrel in 2004 to over $140 per barrel. One reason for this is

Accepted Answer

A)  there is a lag of about two years between oil price increases and declines in real GDP. 
B)  there has been a 60 percent increase in the number of automobiles powered by electricity and other non -oil related sources of fuel. 
C)  Since the 1970s the U.S. economy has reduced the amount of oil used per dollar of GDP by about 60 percent. 
D)  most firms have switched from oil to natural gas as a source of energy to produce goods and services. 
A)  there is a lag of about two years between oil price increases and declines in real GDP. 
B)  there has been a 60 percent increase in the number of automobiles powered by electricity and other non -oil related sources of fuel. 
C)  Since the 1970s the U.S. economy has reduced the amount of oil used per dollar of GDP by about 60 percent. 
D)  most firms have switched from oil to natural gas as a source of energy to produce goods and services.

Question 5

Chinese toy exports were hurt in 2007 as a result of lead paint fears. How would this decrease in exports have affected China's aggregate demand curve?

Accepted Answer

A)  Aggregate demand would have shifted to the left. 
B)  Aggregate demand would not have shifted, but there would have been a movement up the aggregate demand curve. 
C)  Aggregate demand would not have shifted, but there would have been a movement down the aggregate demand curve. 
D)  Aggregate demand would have shifted to the right. 
A)  Aggregate demand would have shifted to the left. 
B)  Aggregate demand would not have shifted, but there would have been a movement up the aggregate demand curve. 
C)  Aggregate demand would not have shifted, but there would have been a movement down the aggregate demand curve. 
D)  Aggregate demand would have shifted to the right.

Question 6

Why did the revenues of Aramex drop by an average of 9 percent in the first two quarters on 2009?

Accepted Answer

A)  A new competitor had entered the market. 
B)  Aramex management had increase prices in the preceding quarter. 
C)  There was a global slowdown in freight forwarding activity. 
D)  Tariffs were introduced that restricted the Jordanian export trade. 
A)  A new competitor had entered the market. 
B)  Aramex management had increase prices in the preceding quarter. 
C)  There was a global slowdown in freight forwarding activity. 
D)  Tariffs were introduced that restricted the Jordanian export trade.

Question 7

Does an Egyptian consumer who buys a Kushari dish made in Egypt contribute more to Egyptian aggregate demand than does a consumer who purchases a McDonalds?

Accepted Answer

A)  Yes, because the Kushari is made locally. 
B)  No, because McDonalds are made in Egypt under licence. 
C)  Yes, because McDonalds in an American company. 
D)  It is impossible to tell, without knowing where the various ingredients come from.. 
A)  Yes, because the Kushari is made locally. 
B)  No, because McDonalds are made in Egypt under licence. 
C)  Yes, because McDonalds in an American company. 
D)  It is impossible to tell, without knowing where the various ingredients come from..

Question 8

Which of the following was an inflationary pressure causing high inflation rates in Saudi Arabia in 2008?

Accepted Answer

A)  Decreasing domestic rents 
B)  Increasing food prices 
C)  Low domestic demand 
D)  Low oil export prices 
A)  Decreasing domestic rents 
B)  Increasing food prices 
C)  Low domestic demand 
D)  Low oil export prices

Question 9

Last week, 5.5 Egyptian pounds could purchase one U.S. dollar. This week, it takes six Egyptian pounds to purchase one U.S. dollar. This change in the value of the dollar will ________ exports from the U.S. to Egypt and ________ U.S. aggregate demand.

Accepted Answer

A)  increase; decrease 
B)  decrease; increase 
C)  increase; increase 
D)  decrease; decrease 
A)  increase; decrease 
B)  decrease; increase 
C)  increase; increase 
D)  decrease; decrease

An increase in investment causes the price level to in the short run and in the long run.

What did FedEx Middle East do to meet the challenge of the global recession in 2009?

Spending on the armed forces is categorized as government purchases. How do increases in spending on wars affect the aggregate demand curve?

By mid -2008, U.S. real GDP continued to grow despite increases in oil prices from about $34 per barrel in 2004 to over $140 per barrel. One reason for this is

Chinese toy exports were hurt in 2007 as a result of lead paint fears. How would this decrease in exports have affected China's aggregate demand curve?

Why did the revenues of Aramex drop by an average of 9 percent in the first two quarters on 2009?

Does an Egyptian consumer who buys a Kushari dish made in Egypt contribute more to Egyptian aggregate demand than does a consumer who purchases a McDonalds?

Which of the following was an inflationary pressure causing high inflation rates in Saudi Arabia in 2008?

Last week, 5.5 Egyptian pounds could purchase one U.S. dollar. This week, it takes six Egyptian pounds to purchase one U.S. dollar. This change in the value of the dollar will exports from the U.S. to Egypt and U.S. aggregate demand.

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Elasticity: The Responsiveness of Demand and Supply

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: The Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

Externalities, Environmental Policy, and Public Goods

Comparative Advantage and the Gains From International Trade Macro

GDP: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Unemployment and Inflation

The Markets for Labor and Other Factors of Production

Output and Expenditure in the Short Run

Money, Banks, and the Central Bank

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Central Bank Policy

Macroeconomics in an Open Economy

Filters

Exam 20: Aggregate Demand and Aggregate Supply Analysis

An increase in investment causes the price level to ________ in the short run and ________ in the long run.

What did FedEx Middle East do to meet the challenge of the global recession in 2009?

Spending on the armed forces is categorized as government purchases. How do increases in spending on wars affect the aggregate demand curve?

By mid -2008, U.S. real GDP continued to grow despite increases in oil prices from about $34 per barrel in 2004 to over $140 per barrel. One reason for this is

Chinese toy exports were hurt in 2007 as a result of lead paint fears. How would this decrease in exports have affected China's aggregate demand curve?

Why did the revenues of Aramex drop by an average of 9 percent in the first two quarters on 2009?

Does an Egyptian consumer who buys a Kushari dish made in Egypt contribute more to Egyptian aggregate demand than does a consumer who purchases a McDonalds?

Which of the following was an inflationary pressure causing high inflation rates in Saudi Arabia in 2008?

Last week, 5.5 Egyptian pounds could purchase one U.S. dollar. This week, it takes six Egyptian pounds to purchase one U.S. dollar. This change in the value of the dollar will ________ exports from the U.S. to Egypt and ________ U.S. aggregate demand.

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Elasticity: The Responsiveness of Demand and Supply

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: The Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

Externalities, Environmental Policy, and Public Goods

Comparative Advantage and the Gains From International Trade Macro

GDP: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Unemployment and Inflation

The Markets for Labor and Other Factors of Production

Output and Expenditure in the Short Run

Money, Banks, and the Central Bank

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Central Bank Policy

Macroeconomics in an Open Economy

Filters

An increase in investment causes the price level to in the short run and in the long run.

Last week, 5.5 Egyptian pounds could purchase one U.S. dollar. This week, it takes six Egyptian pounds to purchase one U.S. dollar. This change in the value of the dollar will exports from the U.S. to Egypt and U.S. aggregate demand.