Question 1

A short-run decrease in real GDP will

Accepted Answer

A)  increase the price of non-labor inputs,increase input requirements per unit of output,and increase the price level 
B)  increase the price of non-labor inputs,decrease input requirements per unit of output,and decrease the price level 
C)  decrease the price of non-labor inputs,decrease input requirements per unit of output,and decrease the price level 
D)  increase the price of non-labor inputs,decrease input requirements per unit of output,and increase the price level 
E)  decrease the price of non-labor inputs,increase input requirements per unit of output,and increase the price level 
A)  increase the price of non-labor inputs,increase input requirements per unit of output,and increase the price level 
B)  increase the price of non-labor inputs,decrease input requirements per unit of output,and decrease the price level 
C)  decrease the price of non-labor inputs,decrease input requirements per unit of output,and decrease the price level 
D)  increase the price of non-labor inputs,decrease input requirements per unit of output,and increase the price level 
E)  decrease the price of non-labor inputs,increase input requirements per unit of output,and increase the price level

Question 2

An industry's typical percentage markup

Accepted Answer

A)  should be expected to fluctuate wildly from year to year 
B)  equals 1 - (average cost per unit/average revenue per unit) 
C)  is determined by collusion 
D)  is of price concern for the macroeconomy 
E)  is relatively low if there is fierce competition among firms. 
A)  should be expected to fluctuate wildly from year to year 
B)  equals 1 - (average cost per unit/average revenue per unit) 
C)  is determined by collusion 
D)  is of price concern for the macroeconomy 
E)  is relatively low if there is fierce competition among firms.

Question 3

The 1990 U.S.recession was

Accepted Answer

A)  triggered by a negative supply shock 
B)  characterized by falling wage rates as the economy began to correct itself 
C)  relatively painless 
D)  triggered by a negative demand shock 
E)  characterized by disinflation 
A)  triggered by a negative supply shock 
B)  characterized by falling wage rates as the economy began to correct itself 
C)  relatively painless 
D)  triggered by a negative demand shock 
E)  characterized by disinflation

Question 4

The phenomenon of wages in many industries changing very little or not at all for a year or more after a change in output is referred by economists as

Accepted Answer

A)  wage lag effect. 
B)  wage stickiness. 
C)  compensation inflexibility. 
D)  inertia. 
E)  reservation wage effect. 
A)  wage lag effect. 
B)  wage stickiness. 
C)  compensation inflexibility. 
D)  inertia. 
E)  reservation wage effect.

Question 5

In the long-run AS-AD model,

Accepted Answer

A)  the position of the AD curve determines output 
B)  the self-correcting mechanism of the economy is irrelevant 
C)  the AS curve shifts leftward whenever the economy is growing 
D)  the position of the AD curve determines the price level 
E)  output fluctuates a great deal 
A)  the position of the AD curve determines output 
B)  the self-correcting mechanism of the economy is irrelevant 
C)  the AS curve shifts leftward whenever the economy is growing 
D)  the position of the AD curve determines the price level 
E)  output fluctuates a great deal

A short-run decrease in real GDP will

An industry's typical percentage markup

The 1990 U.S.recession was

The phenomenon of wages in many industries changing very little or not at all for a year or more after a change in output is referred by economists as

In the long-run AS-AD model,

What Is Economics

Scarcity,choice,and Economic Systems

Scarcity, choice, and Economic Systems: Part A

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

Perfect Competition: Part A

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

labor Markets: Part A

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

What Macroeconomics Tries to Explain

Production, income, and Employment

The Price Level and Inflation

The Classical Long-Run Model

Part A: The Classical Model in an Open Economy

Economic Growth and Rising Living Standards

Economic Fluctuations

The Short-Run Macro Model

Fiscal Policy

Money,banks,and the Federal Reserve

The Money Market and Monetary Policy

Feedback Effects From GDP to the Money Market

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Appendix-finding Equilibrium GDP Algebraically

Appendix: Capital and Leverage

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Exam 27: Aggregate Demand and Aggregate Supply

A short-run decrease in real GDP will

An industry's typical percentage markup

The 1990 U.S.recession was

The phenomenon of wages in many industries changing very little or not at all for a year or more after a change in output is referred by economists as

In the long-run AS-AD model,

What Is Economics

Scarcity,choice,and Economic Systems

Scarcity, choice, and Economic Systems: Part A

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

Perfect Competition: Part A

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets

labor Markets: Part A

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

What Macroeconomics Tries to Explain

Production, income, and Employment

The Price Level and Inflation

The Classical Long-Run Model

Part A: The Classical Model in an Open Economy

Economic Growth and Rising Living Standards

Economic Fluctuations

The Short-Run Macro Model

Fiscal Policy

Money,banks,and the Federal Reserve

The Money Market and Monetary Policy

Feedback Effects From GDP to the Money Market

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Appendix-finding Equilibrium GDP Algebraically

Appendix: Capital and Leverage

Filters