Question 1

Which one of the following newspaper quotations describes a movement along an SAS curve?

Accepted Answer

A) "The decrease in consumer spending may lead to a recession." 
B) "The increase in consumer spending is expected to lead to inflation, without any increase in real GDP." 
C) "Recent higher wage settlements are expected to cause higher inflation this year." 
D) "Growth has been unusually high the last few years due to more women entering the labour force." 
E) "The recent tornadoes destroyed many factories in Calgary and Edmonton." 
A) "The decrease in consumer spending may lead to a recession." 
B) "The increase in consumer spending is expected to lead to inflation, without any increase in real GDP." 
C) "Recent higher wage settlements are expected to cause higher inflation this year." 
D) "Growth has been unusually high the last few years due to more women entering the labour force." 
E) "The recent tornadoes destroyed many factories in Calgary and Edmonton."

Question 2

Use the figure below to answer the following question.
   
Figure 26.3.4
-If real GDP is greater than potential GDP,we would expect

Accepted Answer

A) the money wage rate to fall. 
B) the money wage rate to rise. 
C) potential GDP to increase. 
D) potential GDP to decrease. 
E) A and C. 
A) the money wage rate to fall. 
B) the money wage rate to rise. 
C) potential GDP to increase. 
D) potential GDP to decrease. 
E) A and C.

Question 3

Short-run macroeconomic equilibrium always occurs when the

Accepted Answer

A) economy is at full employment. 
B) economy is below full employment. 
C) economy is above full employment. 
D) quantity of real GDP demanded equals the quantity of real GDP supplied. 
E) AD curve intersects the LAS curve. 
A) economy is at full employment. 
B) economy is below full employment. 
C) economy is above full employment. 
D) quantity of real GDP demanded equals the quantity of real GDP supplied. 
E) AD curve intersects the LAS curve.

Question 4

Use the figure below to answer the following question.
   
Figure 26.3.4
-Refer to Figure 26.3.4.The changes represented

Accepted Answer

A) cannot occur because aggregate demand and short-run aggregate supply cannot change at the same time. 
B) lead to an inflationary gap. 
C) lead to a recessionary gap. 
D) cause a proportionate increase in long run aggregate supply. 
E) increase real GDP. 
A) cannot occur because aggregate demand and short-run aggregate supply cannot change at the same time. 
B) lead to an inflationary gap. 
C) lead to a recessionary gap. 
D) cause a proportionate increase in long run aggregate supply. 
E) increase real GDP.

Which one of the following newspaper quotations describes a movement along an SAS curve?

Use the figure below to answer the following question. Figure 26.3.4 -If real GDP is greater than potential GDP,we would expect

Short-run macroeconomic equilibrium always occurs when the

Use the figure below to answer the following question. Figure 26.3.4 -Refer to Figure 26.3.4.The changes represented

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance,saving,and Investment

Money,the Price Level,and Inflation

The Exchange Rate and the Balance of Payments

Expenditure Multipliers: the Keynesian Model

Canadian Inflation,unemployment,and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 26: Aggregate Supply and Aggregate Demand

Which one of the following newspaper quotations describes a movement along an SAS curve?

Use the figure below to answer the following question. Figure 26.3.4 -If real GDP is greater than potential GDP,we would expect

Short-run macroeconomic equilibrium always occurs when the

Use the figure below to answer the following question. Figure 26.3.4 -Refer to Figure 26.3.4.The changes represented

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance,saving,and Investment

Money,the Price Level,and Inflation

The Exchange Rate and the Balance of Payments

Expenditure Multipliers: the Keynesian Model

Canadian Inflation,unemployment,and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters