A) the stimulus to aggregate demand from a fall in the interest rate B) the effect of a cut in taxes on the aggregate demand curve C) the effect of a fall in prices on aggregate demand curve D) the direct stimulus to consumption because of an increase in the real value of the money supply A) the stimulus to aggregate demand from a fall in the interest rate B) the effect of a cut in taxes on the aggregate demand curve C) the effect of a fall in prices on aggregate demand curve D) the direct stimulus to consumption because of an increase in the real value of the money supply

A) only when the price of every good is rising. B) when the prices of most goods are rising. C) when the prices of most goods are falling. D) only when the price of every good is falling. A) only when the price of every good is rising. B) when the prices of most goods are rising. C) when the prices of most goods are falling. D) only when the price of every good is falling.

Exam 7: Aggregate Demand, Aggregate Supply, and the Self-Correcting Economy

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Consider an initial IS-LM equilibrium point which corresponds to a point labeled "A" on the current AD curve. -Refer to the information above. If the overall tax rate increases with no change in the price level, the resulting IS-LM equilibrium corresponds to a point in the AD diagram

(Multiple Choice)

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Question 41

With the nominal wage rate given, an increase in the price level leads to

(Multiple Choice)

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Question 42

Which of the following will NOT shift the aggregate demand curve?

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Question 43

If the marginal leakage rate is small, then the AD is

(Multiple Choice)

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Question 44

The most accurate capsule summary of the Great Depression in terms of the AD/SAS/LAS model is that

(Multiple Choice)

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Question 45

Which of the following factors will not shift AD to the right

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Question 46

In the figure above, at point F, the real wage is its equilibrium value, leading to changes in the nominal wage that .

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Question 47

If the actual real wage rate is above the equilibrium real wage rate there will be

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Question 48

What explanation for monetary impotence was supported by the events of the Great Depression?

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Question 49

Let the government increase lump-sum taxes. The aggregate demand curve will

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Question 50

Suppose we have an initial equilibrium with curves IS0 and LM0. The price level then falls. At every point on LM0 there is now an excess real balances, which is eliminated at each income level by a in the interest rate, meaning that the new LM curve is LM0.

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Question 51

The Pigou effect refers to the fact that autonomous expenditures may depend on

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Question 52

The Pigou effect is

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Question 53

What is held constant at all points along a single SAS curve?

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Question 54

The "Pigou effect" is the stimulus to aggregate demand when a lower price level causes

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Question 55

We have inflation

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Question 56

The equilibrium real wage rate

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Question 57

Evidence that a horizontal LM curve occurred during the middle depression years would require showing that individuals

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Question 58

Suppose that from an initial AD/SAS/LAS intersection, the money supply grows by ten percent. At the same time, the nominal wage rises by six percent. As a result, output will be the natural GDP, with a price level .

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Question 59

Should the nominal money supply rise by six percent, real balances would remain unaffected if at the same time the price level by six percent, which translates into the aggregate demand diagram as .

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Question 60

Showing 41 - 60 of 153

Consider an initial IS-LM equilibrium point which corresponds to a point labeled "A" on the current AD curve. -Refer to the information above. If the overall tax rate increases with no change in the price level, the resulting IS-LM equilibrium corresponds to a point in the AD diagram

With the nominal wage rate given, an increase in the price level leads to

Which of the following will NOT shift the aggregate demand curve?

If the marginal leakage rate is small, then the AD is

The most accurate capsule summary of the Great Depression in terms of the AD/SAS/LAS model is that

Which of the following factors will not shift AD to the right

In the figure above, at point F, the real wage is its equilibrium value, leading to changes in the nominal wage that .

If the actual real wage rate is above the equilibrium real wage rate there will be

What explanation for monetary impotence was supported by the events of the Great Depression?

Let the government increase lump-sum taxes. The aggregate demand curve will

Suppose we have an initial equilibrium with curves IS0 and LM0. The price level then falls. At every point on LM0 there is now an excess real balances, which is eliminated at each income level by a in the interest rate, meaning that the new LM curve is LM0.

The Pigou effect refers to the fact that autonomous expenditures may depend on

The Pigou effect is

What is held constant at all points along a single SAS curve?

The "Pigou effect" is the stimulus to aggregate demand when a lower price level causes

We have inflation

The equilibrium real wage rate

Evidence that a horizontal LM curve occurred during the middle depression years would require showing that individuals

Suppose that from an initial AD/SAS/LAS intersection, the money supply grows by ten percent. At the same time, the nominal wage rises by six percent. As a result, output will be the natural GDP, with a price level .

Should the nominal money supply rise by six percent, real balances would remain unaffected if at the same time the price level by six percent, which translates into the aggregate demand diagram as .

What Is Macroeconomics

The Measurement of Income, Prices, and Unemployment

Spending, Income, and Interest Rates

Monetary and Fiscal Policy in the Is-Lm Model

The Government Budget, Foreign Borrowing, and the Twin Deficits

International Trade, Exchange Rates, and Macroeconomic Policy

Inflation: Its Causes and Cures

The Goals of Stabilization Policy: Low Inflation and Low Unemployment

The Theory of Economic Growth

The Big Questions of Economic Growth

The Government Budget, the Public Debt, and Social Security

Money and Financial Markets

Stabilization Policy in the Closed and Open Economy

The Economics of Consumption Behavior

The Economics of Investment Behavior

New Classical Macro Confronts New Keynesian Macro

Conclusion: Where We Stand

Filters

Exam 7: Aggregate Demand, Aggregate Supply, and the Self-Correcting Economy

Consider an initial IS-LM equilibrium point which corresponds to a point labeled "A" on the current AD curve. -Refer to the information above. If the overall tax rate increases with no change in the price level, the resulting IS-LM equilibrium corresponds to a point in the AD diagram

With the nominal wage rate given, an increase in the price level leads to

Which of the following will NOT shift the aggregate demand curve?

If the marginal leakage rate is small, then the AD is

The most accurate capsule summary of the Great Depression in terms of the AD/SAS/LAS model is that

Which of the following factors will not shift AD to the right

In the figure above, at point F, the real wage is ________ its equilibrium value, leading to changes in the nominal wage that ________.

If the actual real wage rate is above the equilibrium real wage rate there will be

What explanation for monetary impotence was supported by the events of the Great Depression?

Let the government increase lump-sum taxes. The aggregate demand curve will

Suppose we have an initial equilibrium with curves IS0 and LM0. The price level then falls. At every point on LM0 there is now an excess ________ real balances, which is eliminated at each income level by a ________ in the interest rate, meaning that the new LM curve is ________ LM0.

The Pigou effect refers to the fact that autonomous expenditures may depend on

The Pigou effect is

What is held constant at all points along a single SAS curve?

The "Pigou effect" is the stimulus to aggregate demand when a lower price level causes

We have inflation

The equilibrium real wage rate

Evidence that a horizontal LM curve occurred during the middle depression years would require showing that individuals

Suppose that from an initial AD/SAS/LAS intersection, the money supply grows by ten percent. At the same time, the nominal wage rises by six percent. As a result, output will be ________ the natural GDP, with a price level ________.

Should the nominal money supply rise by six percent, real balances would remain unaffected if at the same time the price level ________ by six percent, which translates into the aggregate demand diagram as ________.

What Is Macroeconomics

The Measurement of Income, Prices, and Unemployment

Spending, Income, and Interest Rates

Monetary and Fiscal Policy in the Is-Lm Model

The Government Budget, Foreign Borrowing, and the Twin Deficits

International Trade, Exchange Rates, and Macroeconomic Policy

Inflation: Its Causes and Cures

The Goals of Stabilization Policy: Low Inflation and Low Unemployment

The Theory of Economic Growth

The Big Questions of Economic Growth

The Government Budget, the Public Debt, and Social Security

Money and Financial Markets

Stabilization Policy in the Closed and Open Economy

The Economics of Consumption Behavior

The Economics of Investment Behavior

New Classical Macro Confronts New Keynesian Macro

Conclusion: Where We Stand

Filters

In the figure above, at point F, the real wage is its equilibrium value, leading to changes in the nominal wage that .

Suppose we have an initial equilibrium with curves IS0 and LM0. The price level then falls. At every point on LM0 there is now an excess real balances, which is eliminated at each income level by a in the interest rate, meaning that the new LM curve is LM0.

Suppose that from an initial AD/SAS/LAS intersection, the money supply grows by ten percent. At the same time, the nominal wage rises by six percent. As a result, output will be the natural GDP, with a price level .

Should the nominal money supply rise by six percent, real balances would remain unaffected if at the same time the price level by six percent, which translates into the aggregate demand diagram as .