Question 1

The aggregate supply curve shows the relationship between ____ and ____, holding all other factors constant.

Accepted Answer

A) a price level, the quantity of real GDP supplied 
B) price level, the supply of real GDP 
C) nominal GDP, the price level of real GDP 
D) the quantity of nominal GDP supplied, the price level 
E) output, input 
A) a price level, the quantity of real GDP supplied 
B) price level, the supply of real GDP 
C) nominal GDP, the price level of real GDP 
D) the quantity of nominal GDP supplied, the price level 
E) output, input

Question 2

Explain how changes in the stock of capital affect aggregate supply.

Accepted Answer

Changes in the stock of capital will alt

Question 3

If exports and imports both fell, but exports fell more than imports,

Accepted Answer

A) AD would fall. 
B) AD would rise. 
C) AD would be unaffected. 
D) AD could either increase or decrease. 
A) AD would fall. 
B) AD would rise. 
C) AD would be unaffected. 
D) AD could either increase or decrease.

Question 4

There are two ways to measure gross domestic product.What are they and how are they different?

Accepted Answer

There are two primary ways of calculatin

Question 5

Economists generally define economic growth as an increase in the nominal income of the population.

Accepted Answer

A) True 
 B)False

Question 6

The short-run aggregate supply curve is positively sloped.Which of the following is not one of the explanations given in the text?

Accepted Answer

A) the misperception effect 
B) the profit effect 
C) market effect 
D) All of the above are explanations of the profit effect. 
A) the misperception effect 
B) the profit effect 
C) market effect 
D) All of the above are explanations of the profit effect.

Question 7

If the stock market continues a steady climb upwards, this ____ consumer confidence and wealth, leading to ____ consumption, and ____ aggregate demand.

Accepted Answer

A) increases, decreased, increased 
B) decreases, decreased, decreased 
C) increases, increased, increased 
D) increases, increased, decreased 
A) increases, decreased, increased 
B) decreases, decreased, decreased 
C) increases, increased, increased 
D) increases, increased, decreased

Question 8

If exports and imports both rose, but exports rose less than imports,

Accepted Answer

A) AD would fall. 
B) AD would rise. 
C) AD would be unaffected. 
D) AD could either increase or decrease. 
A) AD would fall. 
B) AD would rise. 
C) AD would be unaffected. 
D) AD could either increase or decrease.

Question 9

In the long run, an increase in the price level:

Accepted Answer

A) increases output prices relative to input prices. 
B) increases the profit margins of many producers. 
C) increases RGDP supplied. 
D) does none of the above. 
E) does all of the above. 
A) increases output prices relative to input prices. 
B) increases the profit margins of many producers. 
C) increases RGDP supplied. 
D) does none of the above. 
E) does all of the above.

Question 10

The aggregate supply curves show how much a nation's businesses are willing and able to produce at each price level.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following observations will be valid, if major trading partners of the United States experience an economic slowdown?

Accepted Answer

A) an increase in U.S. exports to them 
B) aggregate demand will not be affected 
C) U.S. net exports will fall 
D) aggregate demand will shift to the right 
A) an increase in U.S. exports to them 
B) aggregate demand will not be affected 
C) U.S. net exports will fall 
D) aggregate demand will shift to the right

Question 12

Under the expenditure approach to GDP accounting, government purchases of goods and services include welfare payments.

Accepted Answer

A) True 
 B)False

Question 13

Provide the formula for the expenditure approach to GDP accounting and include an example of each category of spending.

Accepted Answer

GDP = C +

Question 14

What is the natural level of output?

Accepted Answer

It is the level of output in the long ru

Question 15

Adam's Ribs in downtown Chicago buys $10,000 worth of beef ribs, $25,000 worth of pork ribs, and $8,000 worth of napkins each month.Are these purchases included in the calculation of gross domestic product?

Accepted Answer

Economists calculate GDP as the value of

Question 16

Increases in the quality and quantity of an economy's resources have little effect on its potential output in the long run.

Accepted Answer

A) True 
 B)False

Question 17

An increase in investment, combined with an increase in imports, would have what effect on aggregate demand?

Accepted Answer

A) AD would increase. 
B) AD would decrease. 
C) AD would stay the same. 
D) AD could either increase or decrease, depending on which change was of a greater magnitude. 
A) AD would increase. 
B) AD would decrease. 
C) AD would stay the same. 
D) AD could either increase or decrease, depending on which change was of a greater magnitude.

Question 18

Hong Kong and Japan have achieved relatively high incomes per capita despite lacking an abundance of natural resources.

Accepted Answer

A) True 
 B)False

Question 19

For individuals who are holding money or fixed dollar value assets, inflation has the effect of:

Accepted Answer

A) improving their ability to purchase goods and services with those dollars. 
B) reducing their ability to purchase goods and services with those dollars. 
C) increasing the purchasing power of those dollars. 
D) demonstrating the interest rate effect. 
A) improving their ability to purchase goods and services with those dollars. 
B) reducing their ability to purchase goods and services with those dollars. 
C) increasing the purchasing power of those dollars. 
D) demonstrating the interest rate effect.

Question 20

If some non-price level determinant causes total spending to increase, then the effect on aggregate demand will be a:

Accepted Answer

A) movement upward along the curve. 
B) movement downward along the curve. 
C) shift to the left. 
D) shift to the right. 
A) movement upward along the curve. 
B) movement downward along the curve. 
C) shift to the left. 
D) shift to the right.

The aggregate supply curve shows the relationship between and , holding all other factors constant.

Explain how changes in the stock of capital affect aggregate supply.

If exports and imports both fell, but exports fell more than imports,

There are two ways to measure gross domestic product.What are they and how are they different?

Economists generally define economic growth as an increase in the nominal income of the population.

The short-run aggregate supply curve is positively sloped.Which of the following is not one of the explanations given in the text?

If the stock market continues a steady climb upwards, this consumer confidence and wealth, leading to consumption, and aggregate demand.

If exports and imports both rose, but exports rose less than imports,

In the long run, an increase in the price level:

The aggregate supply curves show how much a nation's businesses are willing and able to produce at each price level.

Which of the following observations will be valid, if major trading partners of the United States experience an economic slowdown?

Under the expenditure approach to GDP accounting, government purchases of goods and services include welfare payments.

Provide the formula for the expenditure approach to GDP accounting and include an example of each category of spending.

What is the natural level of output?

Adam's Ribs in downtown Chicago buys $10,000 worth of beef ribs, $25,000 worth of pork ribs, and $8,000 worth of napkins each month.Are these purchases included in the calculation of gross domestic product?

Increases in the quality and quantity of an economy's resources have little effect on its potential output in the long run.

An increase in investment, combined with an increase in imports, would have what effect on aggregate demand?

Hong Kong and Japan have achieved relatively high incomes per capita despite lacking an abundance of natural resources.

For individuals who are holding money or fixed dollar value assets, inflation has the effect of:

If some non-price level determinant causes total spending to increase, then the effect on aggregate demand will be a:

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Economic Growth

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters

Exam 13: Aggregate Demand and Aggregate Supply

The aggregate supply curve shows the relationship between ____ and ____, holding all other factors constant.

Explain how changes in the stock of capital affect aggregate supply.

If exports and imports both fell, but exports fell more than imports,

There are two ways to measure gross domestic product.What are they and how are they different?

Economists generally define economic growth as an increase in the nominal income of the population.

The short-run aggregate supply curve is positively sloped.Which of the following is not one of the explanations given in the text?

If the stock market continues a steady climb upwards, this ____ consumer confidence and wealth, leading to ____ consumption, and ____ aggregate demand.

If exports and imports both rose, but exports rose less than imports,

In the long run, an increase in the price level:

The aggregate supply curves show how much a nation's businesses are willing and able to produce at each price level.

Which of the following observations will be valid, if major trading partners of the United States experience an economic slowdown?

Under the expenditure approach to GDP accounting, government purchases of goods and services include welfare payments.

Provide the formula for the expenditure approach to GDP accounting and include an example of each category of spending.

What is the natural level of output?

Adam's Ribs in downtown Chicago buys $10,000 worth of beef ribs, $25,000 worth of pork ribs, and $8,000 worth of napkins each month.Are these purchases included in the calculation of gross domestic product?

Increases in the quality and quantity of an economy's resources have little effect on its potential output in the long run.

An increase in investment, combined with an increase in imports, would have what effect on aggregate demand?

Hong Kong and Japan have achieved relatively high incomes per capita despite lacking an abundance of natural resources.

For individuals who are holding money or fixed dollar value assets, inflation has the effect of:

If some non-price level determinant causes total spending to increase, then the effect on aggregate demand will be a:

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

Economic Growth

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters

The aggregate supply curve shows the relationship between and , holding all other factors constant.

If the stock market continues a steady climb upwards, this consumer confidence and wealth, leading to consumption, and aggregate demand.