Question 1

A decrease in resources,efficiency,or technology will shift the:

Accepted Answer

A) short-run aggregate supply curve rightward. 
B) short-run aggregate supply curve leftward. 
C) long-run aggregate supply curve rightward. 
D) long-run aggregate supply curve leftward. 
A) short-run aggregate supply curve rightward. 
B) short-run aggregate supply curve leftward. 
C) long-run aggregate supply curve rightward. 
D) long-run aggregate supply curve leftward. D

Question 2

A decrease in wealth would shift the:

Accepted Answer

A) aggregate demand curve rightward. 
B) aggregate demand curve leftward. 
C) aggregate supply curve rightward. 
D) aggregate supply curve leftward. 
A) aggregate demand curve rightward. 
B) aggregate demand curve leftward. 
C) aggregate supply curve rightward. 
D) aggregate supply curve leftward. B

Question 3

Leading,coincident,and lagging indicators are based on the concept that:

Accepted Answer

A) expectations of future inflation is the driving force of the economy. 
B) expectations of future profits are the driving force of the economy. 
C) expectations of future unemployment is the driving force of the economy. 
D) none of the above. 
A) expectations of future inflation is the driving force of the economy. 
B) expectations of future profits are the driving force of the economy. 
C) expectations of future unemployment is the driving force of the economy. 
D) none of the above. B

Question 4

Using the aggregate demand-aggregate supply diagram,graphically illustrate and explain the impact of an expansionary monetary policy on the price level and real income in the long run.

Accepted Answer

An expansionary monetary policy would re

Question 5

Economic variables that generally move in tandem with the overall phases of the business cycle are called:

Accepted Answer

A) leading indicators. 
B) coincident indicators. 
C) lagging indicators. 
D) none of the above. 
A) leading indicators. 
B) coincident indicators. 
C) lagging indicators. 
D) none of the above.

Question 6

The aggregate production function shows the quantity and quality of resources used in production given the efficiency with which resources are utilized and the prevailing technology.

Accepted Answer

A) True 
 B)False

Question 7

The level of potential GDP does not change because the factors determining potential output are fixed in the short run.

Accepted Answer

A) True 
 B)False

Question 8

Explain the long-run consequences of continued increases in the money supply.

Accepted Answer

Continued increases in the money supply

Question 9

Aggregate supply changes much faster than aggregate demand.

Accepted Answer

A) True 
 B)False

Question 10

Federal spending and taxation both affect and are influenced by the overall level of economic activity.

Accepted Answer

A) True 
 B)False

Question 11

Briefly explain the difference between leading,coincident,and lagging indicators.

Accepted Answer

Leading indicators are economic variable

Question 12

An income tax system where higher tax rates are applied to increased amounts of income is called:

Accepted Answer

A) a regressive tax system. 
B) a proportional tax system. 
C) a progressive tax system. 
D) a flat rate tax system. 
A) a regressive tax system. 
B) a proportional tax system. 
C) a progressive tax system. 
D) a flat rate tax system.

Question 13

Average duration of unemployment is an example of a:

Accepted Answer

A) leading indicator. 
B) coincident indicator. 
C) lagging indicator. 
D) none of the above. 
A) leading indicator. 
B) coincident indicator. 
C) lagging indicator. 
D) none of the above.

Question 14

Increases in resources and efficiency would increase potential GDP.

Accepted Answer

A) True 
 B)False

Question 15

Economic variables that tend to move in tandem with the overall phases of the business cycle are called leading indicators.

Accepted Answer

A) True 
 B)False

Question 16

Expansionary fiscal policy will shift the AD curve leftward.

Accepted Answer

A) True 
 B)False

Question 17

Explain how the aggregate demand curve is derived.

Accepted Answer

Let the price level decrease resulting i

Question 18

Why is judging trends in economic indicators important to managers?

Accepted Answer

Managers need to be able to react to bot

Question 19

Expansionary fiscal policy should be used if:

Accepted Answer

A) aggregate demand-aggregate supply equilibrium is below potential output. 
B) aggregate demand-aggregate supply equilibrium is above potential output. 
C) aggregate demand-aggregate supply equilibrium is equal to potential output. 
D) none of the above. 
A) aggregate demand-aggregate supply equilibrium is below potential output. 
B) aggregate demand-aggregate supply equilibrium is above potential output. 
C) aggregate demand-aggregate supply equilibrium is equal to potential output. 
D) none of the above.

Question 20

A decrease in consumer confidence would shift the:

Accepted Answer

A) aggregate demand curve rightward. 
B) aggregate demand curve leftward. 
C) aggregate supply curve rightward. 
D) aggregate supply curve leftward. 
A) aggregate demand curve rightward. 
B) aggregate demand curve leftward. 
C) aggregate supply curve rightward. 
D) aggregate supply curve leftward.

A decrease in resources,efficiency,or technology will shift the:

A decrease in wealth would shift the:

Leading,coincident,and lagging indicators are based on the concept that:

Using the aggregate demand-aggregate supply diagram,graphically illustrate and explain the impact of an expansionary monetary policy on the price level and real income in the long run.

Economic variables that generally move in tandem with the overall phases of the business cycle are called:

The aggregate production function shows the quantity and quality of resources used in production given the efficiency with which resources are utilized and the prevailing technology.

The level of potential GDP does not change because the factors determining potential output are fixed in the short run.

Explain the long-run consequences of continued increases in the money supply.

Aggregate supply changes much faster than aggregate demand.

Federal spending and taxation both affect and are influenced by the overall level of economic activity.

Briefly explain the difference between leading,coincident,and lagging indicators.

An income tax system where higher tax rates are applied to increased amounts of income is called:

Average duration of unemployment is an example of a:

Increases in resources and efficiency would increase potential GDP.

Economic variables that tend to move in tandem with the overall phases of the business cycle are called leading indicators.

Expansionary fiscal policy will shift the AD curve leftward.

Explain how the aggregate demand curve is derived.

Why is judging trends in economic indicators important to managers?

Expansionary fiscal policy should be used if:

A decrease in consumer confidence would shift the:

Managers and Economics

Demand, supply, and Equilibrium Prices

Demand Elasticities

Techniques for Understanding Consumer Demand and Behavior

Production and Cost Analysis in the Short Run

Production and Cost Analysis in the Long Run

Market Structure: Perfect Competition

Market Structure: Monopoly and Monopolistic Competition

Market Structure: Oligopoly

Pricing Strategies for the Firm

Measuring Macroeconomic Activity

Spending by Individuals, firms, and Governments on Real Goods and Services

The Role of Money in the Macro Economy

International and Balance of Payments Issues in the Macro Economy

Combining Micro and Macro Analysis for Managerial Decision Making

Filters

Exam 14: The Aggregate Model of the Macro Economy

A decrease in resources,efficiency,or technology will shift the:

A decrease in wealth would shift the:

Leading,coincident,and lagging indicators are based on the concept that:

Using the aggregate demand-aggregate supply diagram,graphically illustrate and explain the impact of an expansionary monetary policy on the price level and real income in the long run.

Economic variables that generally move in tandem with the overall phases of the business cycle are called:

The aggregate production function shows the quantity and quality of resources used in production given the efficiency with which resources are utilized and the prevailing technology.

The level of potential GDP does not change because the factors determining potential output are fixed in the short run.

Explain the long-run consequences of continued increases in the money supply.

Aggregate supply changes much faster than aggregate demand.

Federal spending and taxation both affect and are influenced by the overall level of economic activity.

Briefly explain the difference between leading,coincident,and lagging indicators.

An income tax system where higher tax rates are applied to increased amounts of income is called:

Average duration of unemployment is an example of a:

Increases in resources and efficiency would increase potential GDP.

Economic variables that tend to move in tandem with the overall phases of the business cycle are called leading indicators.

Expansionary fiscal policy will shift the AD curve leftward.

Explain how the aggregate demand curve is derived.

Why is judging trends in economic indicators important to managers?

Expansionary fiscal policy should be used if:

A decrease in consumer confidence would shift the:

Managers and Economics

Demand, supply, and Equilibrium Prices

Demand Elasticities

Techniques for Understanding Consumer Demand and Behavior

Production and Cost Analysis in the Short Run

Production and Cost Analysis in the Long Run

Market Structure: Perfect Competition

Market Structure: Monopoly and Monopolistic Competition

Market Structure: Oligopoly

Pricing Strategies for the Firm

Measuring Macroeconomic Activity

Spending by Individuals, firms, and Governments on Real Goods and Services

The Role of Money in the Macro Economy

International and Balance of Payments Issues in the Macro Economy

Combining Micro and Macro Analysis for Managerial Decision Making

Filters