Question 1

Which of the following would NOT cause a shift in the short-run aggregate supply curve?

Accepted Answer

A)  an increase in resource prices 
B)  a decrease in the expected rate of inflation 
C)  a major technological advance 
D)  a decrease in real interest rates 
A)  an increase in resource prices 
B)  a decrease in the expected rate of inflation 
C)  a major technological advance 
D)  a decrease in real interest rates

Question 2

If oil prices decrease,the short-run aggregate supply curve shifts _____ and output supplied will be _____.

Accepted Answer

A)  left;increased 
B)  left;reduced 
C)  right;increased 
D)  right;reduced 
A)  left;increased 
B)  left;reduced 
C)  right;increased 
D)  right;reduced

Question 3

Which of the following best illustrates the wealth effect?

Accepted Answer

A)  Jacob saved $25,000,which he put in the stock market.The market suddenly did very well,and though Jacob is not yet aware of it,his stock portfolio value rose to $36,000. 
B)  Simon felt he needed at least $800,000 to retire comfortably.He increased his saving to build up his wealth. 
C)  The Jones family has $50,000 in a bank.Price at the stores rose dramatically,so the purchasing power represented by that $50,000 diminished. 
D)  Margaret had her savings in Treasury bonds.She thought that stocks might offer her a better opportunity to increase her wealth,so she sold her bonds to buy stocks. 
A)  Jacob saved $25,000,which he put in the stock market.The market suddenly did very well,and though Jacob is not yet aware of it,his stock portfolio value rose to $36,000. 
B)  Simon felt he needed at least $800,000 to retire comfortably.He increased his saving to build up his wealth. 
C)  The Jones family has $50,000 in a bank.Price at the stores rose dramatically,so the purchasing power represented by that $50,000 diminished. 
D)  Margaret had her savings in Treasury bonds.She thought that stocks might offer her a better opportunity to increase her wealth,so she sold her bonds to buy stocks.

Question 4

In the aggregate demand/aggregate supply (AD/AS)model,the vertical axis is labeled:

Accepted Answer

A)  aggregate price level. 
B)  consumption. 
C)  GDP. 
D)  consumption plus investment plus government spending. 
A)  aggregate price level. 
B)  consumption. 
C)  GDP. 
D)  consumption plus investment plus government spending.

Question 5

When the price of a product falls,causing consumers to purchase more of that product and less of other products,it is the:

Accepted Answer

A)  income effect. 
B)  substitution effect. 
C)  wealth effect. 
D)  interest rate effect. 
A)  income effect. 
B)  substitution effect. 
C)  wealth effect. 
D)  interest rate effect.

Which of the following would NOT cause a shift in the short-run aggregate supply curve?

If oil prices decrease,the short-run aggregate supply curve shifts _ and output supplied will be _.

Which of the following best illustrates the wealth effect?

In the aggregate demand/aggregate supply (AD/AS)model,the vertical axis is labeled:

When the price of a product falls,causing consumers to purchase more of that product and less of other products,it is the:

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Measuring Inflation and Unemployment

Economic Growth

Aggregate Expenditures

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

International Trade

Open Economy Macroeconomic

Filters

Exam 9: Aggregate Demand and Supply

Which of the following would NOT cause a shift in the short-run aggregate supply curve?

If oil prices decrease,the short-run aggregate supply curve shifts _____ and output supplied will be _____.

Which of the following best illustrates the wealth effect?

In the aggregate demand/aggregate supply (AD/AS)model,the vertical axis is labeled:

When the price of a product falls,causing consumers to purchase more of that product and less of other products,it is the:

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Measuring Inflation and Unemployment

Economic Growth

Aggregate Expenditures

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

International Trade

Open Economy Macroeconomic

Filters

If oil prices decrease,the short-run aggregate supply curve shifts _ and output supplied will be _.