Question 1

Which of the following is most likely to happen if the aggregate demand curve for an economy (which was initially in equilibrium)shifts to the left?​

Accepted Answer

A) The equilibrium real GDP will decrease. 
B) The equilibrium price level in the economy will increase. 
C) The aggregate supply curve will shift rightward. 
D) The aggregate supply curve will shift leftward. 
E) The economy will experience an expansion. 
A) The equilibrium real GDP will decrease. 
B) The equilibrium price level in the economy will increase. 
C) The aggregate supply curve will shift rightward. 
D) The aggregate supply curve will shift leftward. 
E) The economy will experience an expansion. A

Question 2

The aggregate demand curve for an economy depicts the:​

Accepted Answer

A) quantity of goods and services demanded during a given time period at different interest rates,other things held constant. 
B) quantity of goods and services demanded at different price levels during different time periods,other things held constant. 
C) quantity of goods and services demanded at different price levels during a given time period,other things held constant. 
D) quantity of goods and services that the economy is capable of producing during a given time period,other things held constant. 
E) final quantity of goods and services actually produced by the economy during a given time period,other things held constant. 
A) quantity of goods and services demanded during a given time period at different interest rates,other things held constant. 
B) quantity of goods and services demanded at different price levels during different time periods,other things held constant. 
C) quantity of goods and services demanded at different price levels during a given time period,other things held constant. 
D) quantity of goods and services that the economy is capable of producing during a given time period,other things held constant. 
E) final quantity of goods and services actually produced by the economy during a given time period,other things held constant. C

Question 3

Which of these is a lagging economic indicator?​

Accepted Answer

A) The unemployment rate 
B) Personal income​ 
C) Industrial production​ 
D) Total employment​ 
E) Fluctuations in stock prices​ 
A) The unemployment rate 
B) Personal income​ 
C) Industrial production​ 
D) Total employment​ 
E) Fluctuations in stock prices​ A

Question 4

The aggregate supply curve represents:​

Accepted Answer

A) the quantity of aggregate output that producers are willing and able to supply at each possible price level. 
B) the total quantity of a particular good that all producers are willing to supply at each possible price level. 
C) the total quantity of a particular good that all producers are willing to supply at the equilibrium price level. 
D) the quantity of aggregate output that producers are willing and able to supply at the equilibrium price level. 
E) the quantity of aggregate output that producers are willing and able to supply at the equilibrium level of GDP. 
A) the quantity of aggregate output that producers are willing and able to supply at each possible price level. 
B) the total quantity of a particular good that all producers are willing to supply at each possible price level. 
C) the total quantity of a particular good that all producers are willing to supply at the equilibrium price level. 
D) the quantity of aggregate output that producers are willing and able to supply at the equilibrium price level. 
E) the quantity of aggregate output that producers are willing and able to supply at the equilibrium level of GDP.

Question 5

The figure below shows the aggregate demand and supply curves for the U.S.The figure given below shows that between period 1 and period 2 nominal GDP changed from $40,000 to:​ ​
Figure 5.2
​

Accepted Answer

A) $18,000 and back again. 
B) $18,000 and stayed there. 
C) $18,000 in period 1 and to $10,000 in period 2. 
D) $10,000 in period 1 and stayed there in period 2. 
E) $10,000 in period 1 and to $18,000 in period 2. 
A) $18,000 and back again. 
B) $18,000 and stayed there. 
C) $18,000 in period 1 and to $10,000 in period 2. 
D) $10,000 in period 1 and stayed there in period 2. 
E) $10,000 in period 1 and to $18,000 in period 2.

Question 6

Which of these is most likely to result when a demand-management policy is used in an economy that is experiencing stagflation?

Accepted Answer

A) A decrease in investment spending 
B) An increase in the rate of inflation 
C) An increase in unemployment 
D) A decrease in the rate of inflation 
E) A decrease in real GDP 
A) A decrease in investment spending 
B) An increase in the rate of inflation 
C) An increase in unemployment 
D) A decrease in the rate of inflation 
E) A decrease in real GDP

Question 7

The term inflation is used to describe a(n):

Accepted Answer

A) rise in the value of money. 
B) decline in nominal income. 
C) sustained increase in the price level. 
D) general reduction in prices. 
E) economic problem faced only by the elderly population. 
A) rise in the value of money. 
B) decline in nominal income. 
C) sustained increase in the price level. 
D) general reduction in prices. 
E) economic problem faced only by the elderly population.

Question 8

The recession that set in after December 2007 can be attributed to:

Accepted Answer

A) an increase in expenditure on war. 
B) a decline in home prices and an increase in foreclosures. 
C) an increase in terrorist activities. 
D) crop failures around the world. 
E) an increase in oil prices in the international market. 
A) an increase in expenditure on war. 
B) a decline in home prices and an increase in foreclosures. 
C) an increase in terrorist activities. 
D) crop failures around the world. 
E) an increase in oil prices in the international market.

Question 9

The Employment Act of 1946:

Accepted Answer

A) guaranteed full employment. 
B) allowed the federal government to hire as many people as it could to achieve full employment. 
C) gave the federal government the power to levy an income tax. 
D) imposed a responsibility on the federal government to promote maximum employment. 
E) obligated the federal government to run budget surpluses to achieve full employment. 
A) guaranteed full employment. 
B) allowed the federal government to hire as many people as it could to achieve full employment. 
C) gave the federal government the power to levy an income tax. 
D) imposed a responsibility on the federal government to promote maximum employment. 
E) obligated the federal government to run budget surpluses to achieve full employment.

Question 10

The demand for _____ is most severely affected by a recession.​

Accepted Answer

A) medicines 
B) automobiles​ 
C) breakfast cereals​ 
D) haircuts​ 
E) gasoline​ 
A) medicines 
B) automobiles​ 
C) breakfast cereals​ 
D) haircuts​ 
E) gasoline​

Question 11

The concept of "invisible hand" introduced by Adam Smith explains:​

Accepted Answer

A) why people act in their own best interests. 
B) why the government intervenes to overcome failures in private markets. 
C) how people,acting out of self-interest,unintentionally promote the general good. 
D) how comparative advantage and specialization promote international trade. 
E) how the creation of goods and services generates its own demand by creating employment and income. 
A) why people act in their own best interests. 
B) why the government intervenes to overcome failures in private markets. 
C) how people,acting out of self-interest,unintentionally promote the general good. 
D) how comparative advantage and specialization promote international trade. 
E) how the creation of goods and services generates its own demand by creating employment and income.

Question 12

Which of these is a likely consequence of an increase in the price level in the economy,other things constant?​

Accepted Answer

A) Firms demanding less imported raw materials 
B) Government demanding less military hardware​ 
C) Foreigners demanding greater amount of U.S.goods​ 
D) Households demanding more housing and furniture​ 
E) Firms demanding more capital resources​ 
A) Firms demanding less imported raw materials 
B) Government demanding less military hardware​ 
C) Foreigners demanding greater amount of U.S.goods​ 
D) Households demanding more housing and furniture​ 
E) Firms demanding more capital resources​

Question 13

The federal debt is a stock variable that measures the net accumulation of prior federal deficits.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is the significance of a country's price index?​

Accepted Answer

A) It helps in measuring changes in the nominal interest rate in a country. 
B) It helps in measuring the total disposable income of a country. 
C) It helps in determining a country's real GDP each year. 
D) It helps in measuring changes in the prices of only luxury goods. 
E) It helps in measuring the demand for goods and services exported by a country. 
A) It helps in measuring changes in the nominal interest rate in a country. 
B) It helps in measuring the total disposable income of a country. 
C) It helps in determining a country's real GDP each year. 
D) It helps in measuring changes in the prices of only luxury goods. 
E) It helps in measuring the demand for goods and services exported by a country.

Question 15

Which of these is the most ideal measure of aggregate output?​

Accepted Answer

A) Disposable income 
B) Nominal GDP 
C) Personal income 
D) The real GDP 
E) Gross national product 
A) Disposable income 
B) Nominal GDP 
C) Personal income 
D) The real GDP 
E) Gross national product

Question 16

The Keynesian approach to government economic policy:​

Accepted Answer

A) has emphasized the role of individual self-interest as a powerful stabilizing force. 
B) has consistently failed to reduce fluctuations in economic activity. 
C) was ineffective during the 1960s. 
D) highlighted the role of aggregate demand. 
E) was rechristened supply-side economics around 1980. 
A) has emphasized the role of individual self-interest as a powerful stabilizing force. 
B) has consistently failed to reduce fluctuations in economic activity. 
C) was ineffective during the 1960s. 
D) highlighted the role of aggregate demand. 
E) was rechristened supply-side economics around 1980.

Question 17

Which of the following variables is measured only at a particular point in time and not over different time periods?

Accepted Answer

A) The unemployment rate 
B) Consumer income 
C) The federal government's debt 
D) The federal government's budget deficit 
E) Total expenditure 
A) The unemployment rate 
B) Consumer income 
C) The federal government's debt 
D) The federal government's budget deficit 
E) Total expenditure

Question 18

Which of these is a likely impact of an increase in the price level in an economy on the aggregate supply in the economy?​

Accepted Answer

A) An increase in the quantity of real GDP supplied 
B) A decrease in the quantity of real GDP supplied​ 
C) A leftward shift of the aggregate supply curve​ 
D) A rightward shift of the aggregate supply curve​ 
E) An increase in the slope of the aggregate supply curve​ 
A) An increase in the quantity of real GDP supplied 
B) A decrease in the quantity of real GDP supplied​ 
C) A leftward shift of the aggregate supply curve​ 
D) A rightward shift of the aggregate supply curve​ 
E) An increase in the slope of the aggregate supply curve​

Question 19

A federal budget deficit can simultaneously reduce inflation and unemployment.

Accepted Answer

A) True 
 B)False

Question 20

Which of these is a likely impact of a decrease in the price level in an economy on the aggregate supply in the economy?​

Accepted Answer

A) An increase in the quantity of real GDP supplied 
B) A decrease in the quantity of real GDP supplied​ 
C) A leftward shift of the aggregate supply curve​ 
D) A rightward shift of the aggregate supply curve​ 
E) An increase in the slope of the aggregate supply curve​ 
A) An increase in the quantity of real GDP supplied 
B) A decrease in the quantity of real GDP supplied​ 
C) A leftward shift of the aggregate supply curve​ 
D) A rightward shift of the aggregate supply curve​ 
E) An increase in the slope of the aggregate supply curve​

Which of the following is most likely to happen if the aggregate demand curve for an economy (which was initially in equilibrium)shifts to the left?

The aggregate demand curve for an economy depicts the:

Which of these is a lagging economic indicator?

The aggregate supply curve represents:

The figure below shows the aggregate demand and supply curves for the U.S.The figure given below shows that between period 1 and period 2 nominal GDP changed from $40,000 to: Figure 5.2

Which of these is most likely to result when a demand-management policy is used in an economy that is experiencing stagflation?

The term inflation is used to describe a(n):

The recession that set in after December 2007 can be attributed to:

The Employment Act of 1946:

The demand for _____ is most severely affected by a recession.

The concept of "invisible hand" introduced by Adam Smith explains:

Which of these is a likely consequence of an increase in the price level in the economy,other things constant?

The federal debt is a stock variable that measures the net accumulation of prior federal deficits.

Which of the following is the significance of a country's price index?

Which of these is the most ideal measure of aggregate output?

The Keynesian approach to government economic policy:

Which of the following variables is measured only at a particular point in time and not over different time periods?

Which of these is a likely impact of an increase in the price level in an economy on the aggregate supply in the economy?

A federal budget deficit can simultaneously reduce inflation and unemployment.

Which of these is a likely impact of a decrease in the price level in an economy on the aggregate supply in the economy?

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, supply, and Markets

Tracking the Useconomy

Unemployment and Inflation

Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Exam 5: Introduction to Macroeconomics

Which of the following is most likely to happen if the aggregate demand curve for an economy (which was initially in equilibrium)shifts to the left?​

The aggregate demand curve for an economy depicts the:​

Which of these is a lagging economic indicator?​

The aggregate supply curve represents:​

The figure below shows the aggregate demand and supply curves for the U.S.The figure given below shows that between period 1 and period 2 nominal GDP changed from $40,000 to:​ ​ Figure 5.2 ​

Which of these is most likely to result when a demand-management policy is used in an economy that is experiencing stagflation?

The term inflation is used to describe a(n):

The recession that set in after December 2007 can be attributed to:

The Employment Act of 1946:

The demand for _____ is most severely affected by a recession.​

The concept of "invisible hand" introduced by Adam Smith explains:​

Which of these is a likely consequence of an increase in the price level in the economy,other things constant?​

The federal debt is a stock variable that measures the net accumulation of prior federal deficits.

Which of the following is the significance of a country's price index?​

Which of these is the most ideal measure of aggregate output?​

The Keynesian approach to government economic policy:​

Which of the following variables is measured only at a particular point in time and not over different time periods?

Which of these is a likely impact of an increase in the price level in an economy on the aggregate supply in the economy?​

A federal budget deficit can simultaneously reduce inflation and unemployment.

Which of these is a likely impact of a decrease in the price level in an economy on the aggregate supply in the economy?​

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, supply, and Markets

Tracking the Useconomy

Unemployment and Inflation

Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Which of the following is most likely to happen if the aggregate demand curve for an economy (which was initially in equilibrium)shifts to the left?

The aggregate demand curve for an economy depicts the:

Which of these is a lagging economic indicator?

The aggregate supply curve represents:

The figure below shows the aggregate demand and supply curves for the U.S.The figure given below shows that between period 1 and period 2 nominal GDP changed from $40,000 to: Figure 5.2

The demand for _____ is most severely affected by a recession.

The concept of "invisible hand" introduced by Adam Smith explains:

Which of these is a likely consequence of an increase in the price level in the economy,other things constant?

Which of the following is the significance of a country's price index?

Which of these is the most ideal measure of aggregate output?

The Keynesian approach to government economic policy:

Which of these is a likely impact of an increase in the price level in an economy on the aggregate supply in the economy?

Which of these is a likely impact of a decrease in the price level in an economy on the aggregate supply in the economy?