Question 1

An increase in spending growth will cause the aggregate demand curve to:

Accepted Answer

A)  shift inward. 
B)  shift outward. 
C)  not shift at all. 
D)  shift randomly. 
A)  shift inward. 
B)  shift outward. 
C)  not shift at all. 
D)  shift randomly.

Question 2

In the equation $\vec { M } + \vec { v } = \vec { P } + \vec { Y } _ { R }$ ,what does $\vec { P }$ stand for?

Accepted Answer

A)  production 
B)  growth in production 
C)  prices 
D)  inflation 
A)  production 
B)  growth in production 
C)  prices 
D)  inflation

Question 3

Use the following to answer questions 
Figure: Aggregate Demand  
-(Figure: Aggregate Demand)Point B on this aggregate demand curve represents an inflation rate of:

Accepted Answer

A)  3%. 
B)  4%. 
C)  5%. 
D)  7%. 
A)  3%. 
B)  4%. 
C)  5%. 
D)  7%.

Question 4

The long-run aggregate supply curve has a slope of -1.

Accepted Answer

A) True 
 B)False

Question 5

An unexpected increase in money growth increases both inflation and real growth in the long run.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is NOT an example of a positive AD shock?

Accepted Answer

A)  a faster growth rate of the money supply 
B)  an increase in government spending growth 
C)  an increase in productivity growth 
D)  an increase in export growth 
A)  a faster growth rate of the money supply 
B)  an increase in government spending growth 
C)  an increase in productivity growth 
D)  an increase in export growth

Question 7

An increase in expected inflation will cause the economy's long-run aggregate supply curve to:

Accepted Answer

A)  shift outward. 
B)  shift inward. 
C)  become steeper. 
D)  remain unchanged. 
A)  shift outward. 
B)  shift inward. 
C)  become steeper. 
D)  remain unchanged.

Question 8

The primary purpose of the AD-AS model is to explain:

Accepted Answer

A)  the steady-state output. 
B)  trends in output. 
C)  business fluctuations. 
D)  long-term economic growth. 
A)  the steady-state output. 
B)  trends in output. 
C)  business fluctuations. 
D)  long-term economic growth.

Question 9

A positive shock to spending will shift the aggregate demand curve to the right and increase output in the short run,but not in the long run.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is NOT a negative aggregate demand shock?

Accepted Answer

A)  a slower money growth rate 
B)  higher taxes 
C)  lower growth of government spending 
D)  decreased import growth 
A)  a slower money growth rate 
B)  higher taxes 
C)  lower growth of government spending 
D)  decreased import growth

Question 11

What happened to the price level between 1929 and 1932?

Accepted Answer

A)  It did not change. 
B)  Inflation reached 20%. 
C)  Inflation hovered around 5%. 
D)  Deflation reached 10%. 
A)  It did not change. 
B)  Inflation reached 20%. 
C)  Inflation hovered around 5%. 
D)  Deflation reached 10%.

An increase in spending growth will cause the aggregate demand curve to:

In the equation $\vec { M } + \vec { v } = \vec { P } + \vec { Y } _ { R }$ ,what does $\vec { P }$ stand for?

Use the following to answer questions Figure: Aggregate Demand -(Figure: Aggregate Demand)Point B on this aggregate demand curve represents an inflation rate of:

The long-run aggregate supply curve has a slope of -1.

An unexpected increase in money growth increases both inflation and real growth in the long run.

Which of the following is NOT an example of a positive AD shock?

An increase in expected inflation will cause the economy's long-run aggregate supply curve to:

The primary purpose of the AD-AS model is to explain:

A positive shock to spending will shift the aggregate demand curve to the right and increase output in the short run,but not in the long run.

Which of the following is NOT a negative aggregate demand shock?

What happened to the price level between 1929 and 1932?

The Big Ideas

The Power of Trade

Supply and Demand

Equilibrium- How Supply and Demand

Price Ceilings and Floors

GDP and the Measurement of Progress

The Wealth of Nations and Economic Growth

Growth,capital Accumulation

Saving,investment,and the Financial System

Stock Markets and Personal Finance

Unemployment and Labor Force Participation

Inflation and the Quantity Theory of Money

Transmission and Amplification Mechanisms

The Federal Reserve System

Monetary Policy

The Federal Budget- Taxes and Spending

Fiscal Policy

International Trade

International Finance

Political Economy and Public Choice

Filters

Exam 13: Business Fluctuations

An increase in spending growth will cause the aggregate demand curve to:

In the equation M⃗+v⃗=P⃗+Y⃗R\vec { M } + \vec { v } = \vec { P } + \vec { Y } _ { R }M+v=P+YR​ ,what does P⃗\vec { P }P stand for?

Use the following to answer questions Figure: Aggregate Demand -(Figure: Aggregate Demand)Point B on this aggregate demand curve represents an inflation rate of:

The long-run aggregate supply curve has a slope of -1.

An unexpected increase in money growth increases both inflation and real growth in the long run.

Which of the following is NOT an example of a positive AD shock?

An increase in expected inflation will cause the economy's long-run aggregate supply curve to:

The primary purpose of the AD-AS model is to explain:

A positive shock to spending will shift the aggregate demand curve to the right and increase output in the short run,but not in the long run.

Which of the following is NOT a negative aggregate demand shock?

What happened to the price level between 1929 and 1932?

The Big Ideas

The Power of Trade

Supply and Demand

Equilibrium- How Supply and Demand

Price Ceilings and Floors

GDP and the Measurement of Progress

The Wealth of Nations and Economic Growth

Growth,capital Accumulation

Saving,investment,and the Financial System

Stock Markets and Personal Finance

Unemployment and Labor Force Participation

Inflation and the Quantity Theory of Money

Transmission and Amplification Mechanisms

The Federal Reserve System

Monetary Policy

The Federal Budget- Taxes and Spending

Fiscal Policy

International Trade

International Finance

Political Economy and Public Choice

Filters

In the equation $\vec { M } + \vec { v } = \vec { P } + \vec { Y } _ { R }$ ,what does $\vec { P }$ stand for?