Exam 12: The Determination of Aggregate Output, the Price Level, and the Interest Rate

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If the combination r = 5% and Y = $100 billion is on the Fed rule line,we know that the combination r = 7% and Y = $100 billion would represent

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Question 101

Refer to the information provided in Figure 12.8 below to answer the questions that follow. Figure 12.8 -Refer to Figure 12.8.Suppose the economy is currently at Point A producing potential output Y₀.If the government increases spending,the economy moves to Point in the short-run and to Point in the long-run.

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Question 102

Which of the following would cause the short-run aggregate supply curve to shift to the right?

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Question 103

The real wealth effect explains why the aggregate supply curve is horizontal in the long run.

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Question 104

Refer to the information provided in Figure 12.3 below to answer the questions that follow. Figure 12.3 -Refer to Figure 12.3.During the 1980s,many firms in the United States were not investing in new capital.This would have caused

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Question 105

Other things equal,an increase in the Z factors the equilibrium interest rate and equilibrium output.

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Question 106

Other things equal,an increase in government spending shifts

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Question 107

Decreasing government spending and decreasing the minimum wage are two policies that both work to decrease the price level.

(True/False)

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Question 108

Whenever the aggregate supply curve intercepts the aggregate demand curve,the economy is producing full employment output.

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Question 109

Refer to the information provided in Figure 12.4 below to answer the questions that follow. Figure 12.4 -Refer to Figure 12.4.Suppose the economy is at Point A,an increase in aggregate demand moves the economy to Point

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Question 110

To decrease output the government could

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Question 111

The aggregate demand curve

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Question 112

Other things equal,an increase in the price level the equilibrium interest rate and equilibrium output.

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Question 113

In an economy,when the price level falls,consumers and firms buy more goods and services.This relationship is represented by the

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Question 114

If the economy is operating way below capacity,an increase in aggregate demand causes a change in the price level and change in output.

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Question 115

The quantity of aggregate output demanded will fall if

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Question 116

Refer to the information provided in Figure 12.5 below to answer the questions that follow. Figure 12.5 -Refer to Figure 12.5.An increase in the price level shifts the to the .

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Question 117

If production costs increase,the price level will rise.

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Question 118

Refer to the information provided in Figure 12.7 below to answer the questions that follow. Figure 12.7 -Refer to Figure 12.7.Potential output

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Question 119

Showing 101 - 119 of 119

If the combination r = 5% and Y = $100 billion is on the Fed rule line,we know that the combination r = 7% and Y = $100 billion would represent

Which of the following would cause the short-run aggregate supply curve to shift to the right?

The real wealth effect explains why the aggregate supply curve is horizontal in the long run.

Refer to the information provided in Figure 12.3 below to answer the questions that follow. Figure 12.3 -Refer to Figure 12.3.During the 1980s,many firms in the United States were not investing in new capital.This would have caused

Other things equal,an increase in the Z factors the equilibrium interest rate and equilibrium output.

Other things equal,an increase in government spending shifts

Decreasing government spending and decreasing the minimum wage are two policies that both work to decrease the price level.

Whenever the aggregate supply curve intercepts the aggregate demand curve,the economy is producing full employment output.

Refer to the information provided in Figure 12.4 below to answer the questions that follow. Figure 12.4 -Refer to Figure 12.4.Suppose the economy is at Point A,an increase in aggregate demand moves the economy to Point

To decrease output the government could

The aggregate demand curve

Other things equal,an increase in the price level the equilibrium interest rate and equilibrium output.

In an economy,when the price level falls,consumers and firms buy more goods and services.This relationship is represented by the

If the economy is operating way below capacity,an increase in aggregate demand causes a change in the price level and change in output.

The quantity of aggregate output demanded will fall if

Refer to the information provided in Figure 12.5 below to answer the questions that follow. Figure 12.5 -Refer to Figure 12.5.An increase in the price level shifts the to the .

If production costs increase,the price level will rise.

Refer to the information provided in Figure 12.7 below to answer the questions that follow. Figure 12.7 -Refer to Figure 12.7.Potential output

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand,supply,and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment,inflation,and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

The Money Supply and the Federal Reserve System

Money Demand and the Equilibrium Interest Rate

Policy Effects and Costs Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing and Transitional Economies

Filters

Exam 12: The Determination of Aggregate Output, the Price Level, and the Interest Rate

If the combination r = 5% and Y = $100 billion is on the Fed rule line,we know that the combination r = 7% and Y = $100 billion would represent

Which of the following would cause the short-run aggregate supply curve to shift to the right?

The real wealth effect explains why the aggregate supply curve is horizontal in the long run.

Refer to the information provided in Figure 12.3 below to answer the questions that follow. Figure 12.3 -Refer to Figure 12.3.During the 1980s,many firms in the United States were not investing in new capital.This would have caused

Other things equal,an increase in the Z factors ________ the equilibrium interest rate and ________ equilibrium output.

Other things equal,an increase in government spending shifts

Decreasing government spending and decreasing the minimum wage are two policies that both work to decrease the price level.

Whenever the aggregate supply curve intercepts the aggregate demand curve,the economy is producing full employment output.

Refer to the information provided in Figure 12.4 below to answer the questions that follow. Figure 12.4 -Refer to Figure 12.4.Suppose the economy is at Point A,an increase in aggregate demand moves the economy to Point

To decrease output the government could

The aggregate demand curve

Other things equal,an increase in the price level ________ the equilibrium interest rate and ________ equilibrium output.

In an economy,when the price level falls,consumers and firms buy more goods and services.This relationship is represented by the

If the economy is operating way below capacity,an increase in aggregate demand causes a ________ change in the price level and ________ change in output.

The quantity of aggregate output demanded will fall if

Refer to the information provided in Figure 12.5 below to answer the questions that follow. Figure 12.5 -Refer to Figure 12.5.An increase in the price level shifts the ________ to the ________.

If production costs increase,the price level will rise.

Refer to the information provided in Figure 12.7 below to answer the questions that follow. Figure 12.7 -Refer to Figure 12.7.Potential output

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand,supply,and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Unemployment,inflation,and Long-Run Growth

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

The Money Supply and the Federal Reserve System

Money Demand and the Equilibrium Interest Rate

Policy Effects and Costs Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing and Transitional Economies

Filters

Other things equal,an increase in the Z factors the equilibrium interest rate and equilibrium output.

Other things equal,an increase in the price level the equilibrium interest rate and equilibrium output.

If the economy is operating way below capacity,an increase in aggregate demand causes a change in the price level and change in output.

Refer to the information provided in Figure 12.5 below to answer the questions that follow. Figure 12.5 -Refer to Figure 12.5.An increase in the price level shifts the to the .