Question 1

A decline in investment will shift the AD curve to the:

Accepted Answer

A)  left by a multiple of the change in investment. 
B)  left by the same amount as the change in investment. 
C)  right by the same amount as the change in investment. 
D)  right by a multiple of the change in investment. 
A)  left by a multiple of the change in investment. 
B)  left by the same amount as the change in investment. 
C)  right by the same amount as the change in investment. 
D)  right by a multiple of the change in investment.

Question 2

Answer the question on the basis of the following table for a particular country in which C is consumption expenditures,Ig is gross investment expenditures,G is government expenditures,X is exports,and M is imports.All figures are in billions of dollars.Each question is independent of other question using the same table,unless otherwise stated. $\begin{array}{c}
\begin{array}{c}
\underline{\text {Price Level}}\
128 \
125 \
122 \
119 \
116
\end{array}
\begin{array}{c}
\underline{\text {C}} \
 \$ 18 \
20 \
22 \
24 \
26
\end{array}
\begin{array}{c}
\underline{\mathrm{I}_{\mathrm{g}} }\
 \$ 2 \
4 \
6 \
8 \
10
\end{array}
\begin{array}{c}
\underline{\text {G }}\
 \$ 3 \
3 \
3 \
3 \
3
\end{array}
\begin{array}{c}
\underline{\text {X }}\
\$ 1 \
2 \
3 \
4 \
5
\end{array}
\begin{array}{c}
\underline{\text {M}} \
 \$ 5 \
4 \
3 \
2 \
1
\end{array}
\begin{array}{c}
\underline{\text {Real GDP}} \
 \
\
\
 \
\
\end{array}
\end{array}$
 Refer to the table.A decline in the international value of the dollar would:

Accepted Answer

A)  increase the values in columns (5)and (6)and reduce aggregate demand. 
B)  decrease the values in columns (5)and (6)and increase aggregate demand. 
C)  decrease the values in column (5),increase the values in column (6),and reduce aggregate demand. 
D)  increase the values in column (5),decrease the values in column (6),and increase aggregate demand. 
A)  increase the values in columns (5)and (6)and reduce aggregate demand. 
B)  decrease the values in columns (5)and (6)and increase aggregate demand. 
C)  decrease the values in column (5),increase the values in column (6),and reduce aggregate demand. 
D)  increase the values in column (5),decrease the values in column (6),and increase aggregate demand.

Question 3

If the dollar price of foreign currencies falls (that is,the dollar appreciates),we would expect:

Accepted Answer

A)  aggregate demand to decrease and aggregate supply to increase. 
B)  both aggregate demand and aggregate supply to decrease. 
C)  both aggregate demand and aggregate supply to increase. 
D)  aggregate demand to increase and aggregate supply to decrease. 
A)  aggregate demand to decrease and aggregate supply to increase. 
B)  both aggregate demand and aggregate supply to decrease. 
C)  both aggregate demand and aggregate supply to increase. 
D)  aggregate demand to increase and aggregate supply to decrease.

A decline in investment will shift the AD curve to the:

If the dollar price of foreign currencies falls (that is,the dollar appreciates),we would expect:

Income Inequality Poverty and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

The Balance of Payments, Exchange Rates, and Trade Deficits

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

The United States and the Global Economy

Filters

Exam 31: Aggregate Demand and Aggregate Supply

A decline in investment will shift the AD curve to the:

If the dollar price of foreign currencies falls (that is,the dollar appreciates),we would expect:

Income Inequality Poverty and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

The Balance of Payments, Exchange Rates, and Trade Deficits

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

The United States and the Global Economy

Filters