Question 1

What is the aggregate demand curve? What is the characteristic of its slope?

Accepted Answer

The aggregate demand curve shows the rel

Question 2

In order to study the macroeconomics we must combine the prices and quantities generated in single-product markets into broad aggregates.

Accepted Answer

A) True 
 B)False

Question 3

The short run aggregate supply curve:

Accepted Answer

A)  shows the various amounts of real output which businesses will produce at each price level. 
B)  is downward sloping because real purchasing power increases as the price level falls. 
C)  contains a vertical range where real output is variable and the price level is constant. 
D)  is explained by the interest rate,wealth,and foreign trade effects. 
A)  shows the various amounts of real output which businesses will produce at each price level. 
B)  is downward sloping because real purchasing power increases as the price level falls. 
C)  contains a vertical range where real output is variable and the price level is constant. 
D)  is explained by the interest rate,wealth,and foreign trade effects.

Question 4

The horizontal shape of the immediate short run aggregate supply implies that:

Accepted Answer

A)  the total amount of output in the economy depends only on the general price level. 
B)  the total amount of output in the economy depends only on the volume of spending. 
C)  the total amount of output in the economy is fixed. 
D)  the total amount of spending depends on the price of inputs. 
A)  the total amount of output in the economy depends only on the general price level. 
B)  the total amount of output in the economy depends only on the volume of spending. 
C)  the total amount of output in the economy is fixed. 
D)  the total amount of spending depends on the price of inputs.

Question 5

Per-unit production cost is determined by dividing output by total input cost.

Accepted Answer

A) True 
 B)False

Question 6

An increase in investment spending caused by a decline in the interest rate will:

Accepted Answer

A)  shift the aggregate supply curve to the left. 
B)  move the economy up along an existing aggregate demand curve. 
C)  shift the aggregate demand curve to the left. 
D)  shift the aggregate demand curve to the right. 
A)  shift the aggregate supply curve to the left. 
B)  move the economy up along an existing aggregate demand curve. 
C)  shift the aggregate demand curve to the left. 
D)  shift the aggregate demand curve to the right.

Question 7

How is the long-run aggregate supply curve sloped? Explain.

Accepted Answer

The long-run aggregate supply curve is f

Question 8

-Which of the above diagrams best portrays the effects of a decrease in the availability of key natural resources?

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  D 
A)  A 
B)  B 
C)  C 
D)  D

Question 9

Why does aggregate demand shift outward by a greater amount than the initial change in spending?

Accepted Answer

The basic reason is because of the multi

What is the aggregate demand curve? What is the characteristic of its slope?

In order to study the macroeconomics we must combine the prices and quantities generated in single-product markets into broad aggregates.

The short run aggregate supply curve:

The horizontal shape of the immediate short run aggregate supply implies that:

Per-unit production cost is determined by dividing output by total input cost.

An increase in investment spending caused by a decline in the interest rate will:

How is the long-run aggregate supply curve sloped? Explain.

-Which of the above diagrams best portrays the effects of a decrease in the availability of key natural resources?

Why does aggregate demand shift outward by a greater amount than the initial change in spending?

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

An Introduction to Macroeconomics

Measuring the Economys Output

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Fiscal Policy, Deficits, Surpluses, and Debt

Money, Banking, and Money Creation

Interest Rates and Monetary Policy

Long-Run Macroeconomic Adjustments

International Trade

Exchange Rates and the Balance of Payments

Filters

Exam 12: Aggregate Demand and Aggregate Supply

What is the aggregate demand curve? What is the characteristic of its slope?

In order to study the macroeconomics we must combine the prices and quantities generated in single-product markets into broad aggregates.

The short run aggregate supply curve:

The horizontal shape of the immediate short run aggregate supply implies that:

Per-unit production cost is determined by dividing output by total input cost.

An increase in investment spending caused by a decline in the interest rate will:

How is the long-run aggregate supply curve sloped? Explain.

-Which of the above diagrams best portrays the effects of a decrease in the availability of key natural resources?

Why does aggregate demand shift outward by a greater amount than the initial change in spending?

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

An Introduction to Macroeconomics

Measuring the Economys Output

Economic Growth

Business Cycles, Unemployment, and Inflation

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Fiscal Policy, Deficits, Surpluses, and Debt

Money, Banking, and Money Creation

Interest Rates and Monetary Policy

Long-Run Macroeconomic Adjustments

International Trade

Exchange Rates and the Balance of Payments

Filters