Question 1

-Refer to the above figure. A movement from B to D would be a result of

Accepted Answer

A) an increase in the quantity of money in circulation. 
B) an increase in labor productivity. 
C) an increase in government expenditures. 
D) an increase in the marginal income tax rate. 
A) an increase in the quantity of money in circulation. 
B) an increase in labor productivity. 
C) an increase in government expenditures. 
D) an increase in the marginal income tax rate.

Question 2

Economic growth is represented on the aggregate supply model by a

Accepted Answer

A) shift in the long-run aggregate supply curve to the left. 
B) shift in the long-run aggregate supply curve to the right. 
C) shift in the short-run aggregate supply curve to the left. 
D) shift in the short-run aggregate supply curve to the right. 
A) shift in the long-run aggregate supply curve to the left. 
B) shift in the long-run aggregate supply curve to the right. 
C) shift in the short-run aggregate supply curve to the left. 
D) shift in the short-run aggregate supply curve to the right.

Question 3

Which of the following will cause a leftward shift in the aggregate demand curve?

Accepted Answer

A) a reduction in the money supply 
B) an increase in taxes 
C) a reduction in government spending 
D) all of the above 
A) a reduction in the money supply 
B) an increase in taxes 
C) a reduction in government spending 
D) all of the above

Question 4

How is economic growth graphically depicted?

Accepted Answer

A) The aggregate demand curve shifts to the left. 
B) Aggregate demand shifts to the right. 
C) Short-run aggregate supply shifts left. 
D) The long-run aggregate supply curve shifts right. 
A) The aggregate demand curve shifts to the left. 
B) Aggregate demand shifts to the right. 
C) Short-run aggregate supply shifts left. 
D) The long-run aggregate supply curve shifts right.

Question 5

Which of the following cause the aggregate demand curve to slope downward and to the right?

Accepted Answer

A) the prices of key goods 
B) the interest rate effect 
C) military expenditures of the government 
D) the demand-shock effect 
A) the prices of key goods 
B) the interest rate effect 
C) military expenditures of the government 
D) the demand-shock effect

Question 6

In an economy in which aggregate demand is stable and a period of sustained and significant productivity growth occurs, there will be

Accepted Answer

A) secular deflation. 
B) secular inflation. 
C) a constant price level. 
D) a shift of aggregate supply to the left. 
A) secular deflation. 
B) secular inflation. 
C) a constant price level. 
D) a shift of aggregate supply to the left.

Question 7

The aggregate demand curve shows that, if other factors are held constant

Accepted Answer

A) higher price levels will result in lower total planned spending. 
B) higher price levels will result in higher total planned spending. 
C) higher price levels will result in lower interest rates. 
D) lower price levels will result in inflationary conditions. 
A) higher price levels will result in lower total planned spending. 
B) higher price levels will result in higher total planned spending. 
C) higher price levels will result in lower interest rates. 
D) lower price levels will result in inflationary conditions.

Question 8

The aggregate demand curve shows the relationship between planned purchases of

Accepted Answer

A) all final goods and services and interest rates. 
B) all final goods and services and the price level. 
C) all final goods and services and nominal GDP. 
D) all final goods and services and total planned production. 
A) all final goods and services and interest rates. 
B) all final goods and services and the price level. 
C) all final goods and services and nominal GDP. 
D) all final goods and services and total planned production.

Question 9

Which of the following will NOT shift the aggregate demand curve?

Accepted Answer

A) a change in the price level 
B) a change in tax rates 
C) a change in the amount of money in circulation 
D) a change in real interest rates 
A) a change in the price level 
B) a change in tax rates 
C) a change in the amount of money in circulation 
D) a change in real interest rates

Question 10

Which of the following statements is correct?
I. When economists derive the aggregate demand curve, they are looking at the effect of the price level on one commodity only.
II. Any non-price-level change that increases total planned real spending on domestic goods shifts the AD curve to the right.

Accepted Answer

A) I only 
B) II only 
C) Both I and II 
D) Neither I nor II 
A) I only 
B) II only 
C) Both I and II 
D) Neither I nor II

Question 11

If our economy is growing at a constant rate of 5 percent per year, then over a period of 10 years we would expect to see which of the following?

Accepted Answer

A) nice, steady flat-line growth 
B) an upward sloping growth path 
C) a downward sloping growth path 
D) It is impossible to say what kind of growth path we would see. 
A) nice, steady flat-line growth 
B) an upward sloping growth path 
C) a downward sloping growth path 
D) It is impossible to say what kind of growth path we would see.

-Refer to the above figure. A movement from B to D would be a result of

Economic growth is represented on the aggregate supply model by a

Which of the following will cause a leftward shift in the aggregate demand curve?

How is economic growth graphically depicted?

Which of the following cause the aggregate demand curve to slope downward and to the right?

In an economy in which aggregate demand is stable and a period of sustained and significant productivity growth occurs, there will be

The aggregate demand curve shows that, if other factors are held constant

The aggregate demand curve shows the relationship between planned purchases of

Which of the following will NOT shift the aggregate demand curve?

Which of the following statements is correct? I. When economists derive the aggregate demand curve, they are looking at the effect of the price level on one commodity only. II. Any non-price-level change that increases total planned real spending on domestic goods shifts the AD curve to the right.

If our economy is growing at a constant rate of 5 percent per year, then over a period of 10 years we would expect to see which of the following?

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Global Economic Growth and Development

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 9: Real GDP and the Price Level in the Long Run

-Refer to the above figure. A movement from B to D would be a result of

Economic growth is represented on the aggregate supply model by a

Which of the following will cause a leftward shift in the aggregate demand curve?

How is economic growth graphically depicted?

Which of the following cause the aggregate demand curve to slope downward and to the right?

In an economy in which aggregate demand is stable and a period of sustained and significant productivity growth occurs, there will be

The aggregate demand curve shows that, if other factors are held constant

The aggregate demand curve shows the relationship between planned purchases of

Which of the following will NOT shift the aggregate demand curve?

Which of the following statements is correct? I. When economists derive the aggregate demand curve, they are looking at the effect of the price level on one commodity only. II. Any non-price-level change that increases total planned real spending on domestic goods shifts the AD curve to the right.

If our economy is growing at a constant rate of 5 percent per year, then over a period of 10 years we would expect to see which of the following?

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

The Macroeconomy: Unemployment, Inflation, and Deflation

Global Economic Growth and Development

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters