Question 1

The OPEC production cuts of 1999-2000 increased energy prices and caused the aggregate supply curve to

Accepted Answer

A)  shift outward. 
B)  shift inward. 
C)  become flatter. 
D)  become steeper. 
A)  shift outward. 
B)  shift inward. 
C)  become flatter. 
D)  become steeper.

Question 2

Figure 10-6  
-In Figure 10-6,which graph best illustrates the effect of the beginning of the Iraq war in 2003?

Accepted Answer

A)  (1) 
B)  (2) 
C)  (3) 
D)  (4) 
A)  (1) 
B)  (2) 
C)  (3) 
D)  (4)

Question 3

The Japanese economy has been consistently weak throughout the 1990s.This has caused a slight deflation,illustrating the

Accepted Answer

A)  negligible cost of eliminating inflation. 
B)  very slow operation of the economy's self-correcting mechanism. 
C)  tendency of inflation to accelerate during recessions. 
D)  rapidity with which inflation can be stopped. 
A)  negligible cost of eliminating inflation. 
B)  very slow operation of the economy's self-correcting mechanism. 
C)  tendency of inflation to accelerate during recessions. 
D)  rapidity with which inflation can be stopped.

Question 4

If aggregate demand is $2,000 billion and aggregate supply is $2,300 billion,the price level will rise.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following situations would cause a period of stagflation at a later point in time?

Accepted Answer

A)  a recessionary gap 
B)  a reduction in investment spending 
C)  an increase in technological development 
D)  an inflationary gap 
A)  a recessionary gap 
B)  a reduction in investment spending 
C)  an increase in technological development 
D)  an inflationary gap

Question 6

If the prices of inputs changes,what will happen to the aggregate supply curve?

Accepted Answer

A)  It does not move but the economy moves along the curve. 
B)  It depends on whether the input prices rise or fall. 
C)  The curve will become flatter or steeper depending on whether the input prices rise or fall. 
D)  It shifts inward or outward depending on whether the input prices rise or fall. 
A)  It does not move but the economy moves along the curve. 
B)  It depends on whether the input prices rise or fall. 
C)  The curve will become flatter or steeper depending on whether the input prices rise or fall. 
D)  It shifts inward or outward depending on whether the input prices rise or fall.

Question 7

If the price level does not fall or only falls very slowly,then the result will be a prolonged period of

Accepted Answer

A)  inflation whenever supply increases. 
B)  production below potential GDP. 
C)  production above potential GDP. 
D)  rapid price increases when demand changes. 
A)  inflation whenever supply increases. 
B)  production below potential GDP. 
C)  production above potential GDP. 
D)  rapid price increases when demand changes.

Question 8

Assume an economy with an upward-sloping aggregate supply curve and an MPC of .80.An increase in investment spending of $50 billion will most likely increase total income by

Accepted Answer

A)  $200 billion. 
B)  $40 billion. 
C)  more than $200 billion. 
D)  more than $50 billion but less than $250 billion. 
A)  $200 billion. 
B)  $40 billion. 
C)  more than $200 billion. 
D)  more than $50 billion but less than $250 billion.

The OPEC production cuts of 1999-2000 increased energy prices and caused the aggregate supply curve to

Figure 10-6 -In Figure 10-6,which graph best illustrates the effect of the beginning of the Iraq war in 2003?

The Japanese economy has been consistently weak throughout the 1990s.This has caused a slight deflation,illustrating the

If aggregate demand is $2,000 billion and aggregate supply is $2,300 billion,the price level will rise.

Which of the following situations would cause a period of stagflation at a later point in time?

If the prices of inputs changes,what will happen to the aggregate supply curve?

If the price level does not fall or only falls very slowly,then the result will be a prolonged period of

Assume an economy with an upward-sloping aggregate supply curve and an MPC of .80.An increase in investment spending of $50 billion will most likely increase total income by

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

The Goals Of Macroeconomic Policy

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

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Exam 10: Bringing In The Supply Side Unemployment and Inflation

The OPEC production cuts of 1999-2000 increased energy prices and caused the aggregate supply curve to

Figure 10-6 -In Figure 10-6,which graph best illustrates the effect of the beginning of the Iraq war in 2003?

The Japanese economy has been consistently weak throughout the 1990s.This has caused a slight deflation,illustrating the

If aggregate demand is $2,000 billion and aggregate supply is $2,300 billion,the price level will rise.

Which of the following situations would cause a period of stagflation at a later point in time?

If the prices of inputs changes,what will happen to the aggregate supply curve?

If the price level does not fall or only falls very slowly,then the result will be a prolonged period of

Assume an economy with an upward-sloping aggregate supply curve and an MPC of .80.An increase in investment spending of $50 billion will most likely increase total income by

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

The Goals Of Macroeconomic Policy

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters