Question 1

The short-run aggregate supply curve

Accepted Answer

A)  becomes flatter at output levels above the full-employment output.
B)  becomes steep at output levels above the full-employment output.
C)  is upward-sloping with a constant slope.
D)  is horizontal.E) All of the above
F) B) and D)

Question 2

If aggregate demand decreases, and, as a result, real output and employment decline but the price level remains unchanged, it is most likely that

Accepted Answer

A)  the money supply has declined.
B)  the price level is inflexible downward and a recession has occurred.
C)  cost-push inflation has occurred.
D)  productivity has declined.E) A) and D)
F) All of the above

Question 3

Profit Expectations on Investments Answer the question based on the accompanying list of items related to aggregate demand or aggregate supply.A change in which factor is most likely to change both aggregate demand and aggregate supply?

Accepted Answer

A)  3
B)  5
C)  7
D)  6E) All of the above
F) None of the above

Question 4

In an effort to avoid recession, the government implements a tax rebate program, effectively cutting taxes for households.We would expect this to

Accepted Answer

A)  affect neither aggregate supply nor aggregate demand.
B)  increase aggregate demand.
C)  reduce aggregate demand.
D)  reduce aggregate supply.E) B) and C)
F) All of the above

Question 5

Depreciation of the dollar relative to foreign currencies will tend to increase net exports and thus aggregate demand of the U.S.economy.

Accepted Answer

A) True 
 B)False

Question 6

In the accompanying table for a particular country, C is consumption expenditures, Ig is gross investment expenditures, G is government expenditures, X is exports, and M is imports.All figures are in billions of dollars.If this nation's equilibrium price level is 125, its net exports will be

Accepted Answer

A)  minus $4 billion.
B)  minus $2 billion.
C)  zero.
D)  $2 billion.E) None of the above
F) All of the above

Question 7

The equivalent of the aggregate supply curve in the aggregate expenditures model is the 45-degree line.

Accepted Answer

A) True 
 B)False

Exam 32: Aggregate Demand and Aggregate Supply

Profit Expectations on Investments Answer the question based on the accompanying list of items related to aggregate demand or aggregate supply.A change in which factor is most likely to change both aggregate demand and aggregate supply?

Correct Answer
verified

Depreciation of the dollar relative to foreign currencies will tend to increase net exports and thus aggregate demand of the U.S.economy.

Correct Answer
verified

If aggregate demand decreases, and, as a result, real output and employment decline but the price level remains unchanged, it is most likely that

Correct Answer
verified

In the accompanying table for a particular country, C is consumption expenditures, Ig is gross investment expenditures, G is government expenditures, X is exports, and M is imports.All figures are in billions of dollars.If this nation's equilibrium price level is 125, its net exports will be

Correct Answer
verified

The short-run aggregate supply curve

Correct Answer
verified

The equivalent of the aggregate supply curve in the aggregate expenditures model is the 45-degree line.

Correct Answer
verified

In an effort to avoid recession, the government implements a tax rebate program, effectively cutting taxes for households.We would expect this to

Correct Answer
verified

Exam 32: Aggregate Demand and Aggregate Supply

Profit Expectations on Investments Answer the question based on the accompanying list of items related to aggregate demand or aggregate supply.A change in which factor is most likely to change both aggregate demand and aggregate supply?

Correct AnswerverifiedShow Answer

Depreciation of the dollar relative to foreign currencies will tend to increase net exports and thus aggregate demand of the U.S.economy.

Correct AnswerverifiedShow Answer

If aggregate demand decreases, and, as a result, real output and employment decline but the price level remains unchanged, it is most likely that

Correct AnswerverifiedShow Answer

In the accompanying table for a particular country, C is consumption expenditures, Ig is gross investment expenditures, G is government expenditures, X is exports, and M is imports.All figures are in billions of dollars.If this nation's equilibrium price level is 125, its net exports will be

Correct AnswerverifiedShow Answer

The short-run aggregate supply curve

Correct AnswerverifiedShow Answer

The equivalent of the aggregate supply curve in the aggregate expenditures model is the 45-degree line.

Correct AnswerverifiedShow Answer

In an effort to avoid recession, the government implements a tax rebate program, effectively cutting taxes for households.We would expect this to

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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