Question 1

Figure 24-2  
-Refer to Figure 24-2. Ceteris paribus, an increase in the expected future price level would be represented by a movement from

Accepted Answer

A)  SRAS1 to SRAS2. 
B)  SRAS2 to SRAS1. 
C)  point A to point B. 
D)  point B to point A. 
A)  SRAS1 to SRAS2. 
B)  SRAS2 to SRAS1. 
C)  point A to point B. 
D)  point B to point A.

Question 2

Stagflation occurs when inflation ________ and GDP ________.

Accepted Answer

A)  rises; rises 
B)  rises; falls 
C)  falls; rises 
D)  falls; falls 
A)  rises; rises 
B)  rises; falls 
C)  falls; rises 
D)  falls; falls

Question 3

Japanese electronics exports were hurt in 2008 as a result of the recession. How would this decrease in exports have affected Japan's aggregate demand curve?

Accepted Answer

A)  The aggregate demand curve would have shifted to the right. 
B)  The aggregate demand curve would not have shifted, but there would have been a movement up the aggregate demand curve. 
C)  The aggregate demand curve would not have shifted, but there would have been a movement down the aggregate demand curve. 
D)  The aggregate demand curve would have shifted to the left. 
A)  The aggregate demand curve would have shifted to the right. 
B)  The aggregate demand curve would not have shifted, but there would have been a movement up the aggregate demand curve. 
C)  The aggregate demand curve would not have shifted, but there would have been a movement down the aggregate demand curve. 
D)  The aggregate demand curve would have shifted to the left.

Question 4

All of the following are reasons why the wages of workers and the prices of inputs rise more slowly than the prices of final goods and services except

Accepted Answer

A)  unions are successful in pushing up wages. 
B)  firms are often slow to adjust wages. 
C)  contracts make prices and wages sticky. 
D)  menu costs make some prices sticky. 
A)  unions are successful in pushing up wages. 
B)  firms are often slow to adjust wages. 
C)  contracts make prices and wages sticky. 
D)  menu costs make some prices sticky.

Question 5

Explain whether KB Homes' sales are likely to fluctuate more or less than the sales of each of the following firms as the economy moves from recession to expansion and back to recession.
Whirlpool Corporation (appliance manufacturer)
Taco Bell
The Boeing Company (aircraft manufacturer)
GameStop (video game sales and rentals)

Accepted Answer

KB Homes' sales are likely to fluctuate

Question 6

________ of unemployment during ________ make it easier for workers to ________ wages.

Accepted Answer

A)  High levels; a recession; accept lower 
B)  Low levels; an expansion; accept lower 
C)  Low levels; a recession; negotiate higher 
D)  High levels; an expansion; negotiate higher 
A)  High levels; a recession; accept lower 
B)  Low levels; an expansion; accept lower 
C)  Low levels; a recession; negotiate higher 
D)  High levels; an expansion; negotiate higher

Figure 24-2 -Refer to Figure 24-2. Ceteris paribus, an increase in the expected future price level would be represented by a movement from

Stagflation occurs when inflation and GDP .

Japanese electronics exports were hurt in 2008 as a result of the recession. How would this decrease in exports have affected Japan's aggregate demand curve?

All of the following are reasons why the wages of workers and the prices of inputs rise more slowly than the prices of final goods and services except

of unemployment during make it easier for workers to wages.

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Money, Banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 24: Aggregate Demand and Aggregate Supply Analysis

Figure 24-2 -Refer to Figure 24-2. Ceteris paribus, an increase in the expected future price level would be represented by a movement from

Stagflation occurs when inflation ________ and GDP ________.

Japanese electronics exports were hurt in 2008 as a result of the recession. How would this decrease in exports have affected Japan's aggregate demand curve?

All of the following are reasons why the wages of workers and the prices of inputs rise more slowly than the prices of final goods and services except

________ of unemployment during ________ make it easier for workers to ________ wages.

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Money, Banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Stagflation occurs when inflation and GDP .

of unemployment during make it easier for workers to wages.