Exam 8: Production and Costs

-Refer to Exhibit 8-1.If we assume that Real GDP and the unemployment rate are inversely related,which of the points on this graph is most likely representative of the highest unemployment rate?

(Multiple Choice)

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Question 181

-Refer to Exhibit 8-3.Which of the following could not have caused a shift in aggregate demand from AD₁ to AD₂?

(Multiple Choice)

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Question 182

Real GDP and the unemployment rate are _________________,ceteris paribus.

(Multiple Choice)

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Question 183

Wage rates fall.This increases and the curve shifts rightward.

(Multiple Choice)

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Question 184

Short-run equilibrium exists

(Multiple Choice)

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Question 185

Suppose consumption decreases at each price level.As a result,aggregate demand ,and the AD curve shifts .

(Multiple Choice)

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Question 186

Explain why the short-run aggregate supply curve (SRAS)is upward sloping,while the long-run aggregate supply (LRAS)curve is a vertical line.

(Essay)

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Question 187

Suppose Americans buy inputs from foreigners.When the price of foreign inputs falls,the U.S.SRAS curve ,which tends to the U.S.price level.

(Multiple Choice)

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Question 188

A decrease in business taxes,causes the expected profitability of investment projects to ,which then shifts the AD curve to the .

(Multiple Choice)

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Question 189

Which of the following statements is false?

(Multiple Choice)

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Question 190

As the interest rate rises,businesses invest and the AD curve shifts to the .

(Multiple Choice)

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Question 191

Suppose the real exchange rate of 10 Mexican pesos to the dollar changes to 9 pesos to the dollar.In this situation,the dollar has ________,making American goods expensive for Mexicans.

(Multiple Choice)

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Question 192

Can a change in the price level cause the aggregate demand curve to shift?

(Multiple Choice)

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Question 193

Suppose the real exchange rate of 105 Japanese yen to the dollar changes to 115 yen to the dollar.In this situation,the dollar has _______,making Japanese goods expensive for Americans.

(Multiple Choice)

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Question 194

Personal income taxes rise.This lowers ,which lowers and the curve shifts .

(Multiple Choice)

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Question 195

After an adverse supply shock occurs,the ______ curve shifts _ resulting in a(n)_ in the price level and a(n)______ in Real GDP.

(Multiple Choice)

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Question 196

The short-run aggregate supply curve slopes upward as a result of the real balance effect,the interest rate effect,and the international trade effect.

(True/False)

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Question 197

The level of Real GDP and the price level always have a direct relationship.

(True/False)

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Question 198

List and describe the three effects that help to explain why the aggregate demand (AD)curve slopes downward.

(Essay)

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Question 199

A decrease in the price of a nonlabor input such as electricity will cause

(Multiple Choice)

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Question 200

Exam 8: Production and Costs

-Refer to Exhibit 8-1.If we assume that Real GDP and the unemployment rate are inversely related,which of the points on this graph is most likely representative of the highest unemployment rate?

-Refer to Exhibit 8-3.Which of the following could not have caused a shift in aggregate demand from AD1 to AD2?

Real GDP and the unemployment rate are _________________,ceteris paribus.

Wage rates fall.This increases __________ and the __________ curve shifts rightward.

Short-run equilibrium exists

Suppose consumption decreases at each price level.As a result,aggregate demand __________,and the AD curve shifts __________.

Explain why the short-run aggregate supply curve (SRAS)is upward sloping,while the long-run aggregate supply (LRAS)curve is a vertical line.

Suppose Americans buy inputs from foreigners.When the price of foreign inputs falls,the U.S.SRAS curve __________,which tends to __________the U.S.price level.

A decrease in business taxes,causes the expected profitability of investment projects to __________,which then shifts the AD curve to the __________.

Which of the following statements is false?

As the interest rate rises,businesses invest __________ and the AD curve shifts to the __________.

Suppose the real exchange rate of 10 Mexican pesos to the dollar changes to 9 pesos to the dollar.In this situation,the dollar has __________________,making American goods __________ expensive for Mexicans.

Can a change in the price level cause the aggregate demand curve to shift?

Suppose the real exchange rate of 105 Japanese yen to the dollar changes to 115 yen to the dollar.In this situation,the dollar has _________________,making Japanese goods __________ expensive for Americans.

Personal income taxes rise.This lowers __________,which lowers __________ and the __________ curve shifts __________.

After an adverse supply shock occurs,the ____________ curve shifts _____________ resulting in a(n)_________________ in the price level and a(n)________________ in Real GDP.

The short-run aggregate supply curve slopes upward as a result of the real balance effect,the interest rate effect,and the international trade effect.

The level of Real GDP and the price level always have a direct relationship.

List and describe the three effects that help to explain why the aggregate demand (AD)curve slopes downward.

A decrease in the price of a nonlabor input such as electricity will cause

What Economics Is About

Production Possibilities Frontier Framework

Supply and Demand: Theory

Prices: Free,controlled,and Relative

Supply,demand,and Price: Applications

Elasticity

Consumer Choice: Maximizing Utility and Behavioral Economics

Perfect Competition

Monopoly

Monopolistic Competition, oligopoly, and Game Theory

Government and Product Markets: Antitrust and Regulation

Factor Markets: With Emphasis on the Labor Market

Wages,union,and Labor

The Distribution of Income and Poverty

Interest,rent,and Profit

Market Failure: Externalities, public Goods, and Asymmetric Information

Public Choice and Special-Interest-Group Politics

Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

International Trade

International Finance

The Economic Case for and Against Government: Five Topics Considered

Stocks,bonds,futures,and Options

Stocks,bonds,futures,and Options

Filters

-Refer to Exhibit 8-3.Which of the following could not have caused a shift in aggregate demand from AD₁ to AD₂?

Wage rates fall.This increases and the curve shifts rightward.

Suppose consumption decreases at each price level.As a result,aggregate demand ,and the AD curve shifts .

Suppose Americans buy inputs from foreigners.When the price of foreign inputs falls,the U.S.SRAS curve ,which tends to the U.S.price level.

A decrease in business taxes,causes the expected profitability of investment projects to ,which then shifts the AD curve to the .

As the interest rate rises,businesses invest and the AD curve shifts to the .

Suppose the real exchange rate of 10 Mexican pesos to the dollar changes to 9 pesos to the dollar.In this situation,the dollar has ________,making American goods expensive for Mexicans.

Suppose the real exchange rate of 105 Japanese yen to the dollar changes to 115 yen to the dollar.In this situation,the dollar has _______,making Japanese goods expensive for Americans.

Personal income taxes rise.This lowers ,which lowers and the curve shifts .

After an adverse supply shock occurs,the ______ curve shifts _ resulting in a(n)_ in the price level and a(n)______ in Real GDP.