Question 1

Illustrate the classical analysis of growth and inflation with aggregate demand and long-run aggregate supply curves.

Accepted Answer

See graph. <img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> Over time, technological adv...

Question 2

If output is above its natural rate, then according to sticky-wage theory

Accepted Answer

A)  workers and firms will strike bargains for lower wages. In response to the lower wages firms will produce less at any given price level.
B)  workers and firms will strike bargains for lower wages. In response to the lower wages firms will produce more at any given price level.
C)  workers will strike bargains for higher wages. In response to the higher wages firms will produce less at any given price level.
D)  workers and firms will strike bargains for higher wages. In response to the higher wages firms will produce more at any given price level.E) A) and B)
F) A) and C)

Question 3

The aggregate quantity of goods and services demanded changes as the price level falls because

Accepted Answer

A)  real wealth falls, interest rates rise, and the dollar appreciates.
B)  real wealth falls, interest rates rise, and the dollar depreciates.
C)  real wealth rises, interest rates fall, and the dollar appreciates.
D)  real wealth rises, interest rates fall, and the dollar depreciates.E) A) and D)
F) B) and C)

Question 4

Figure 33-8. 1 and Y1 , then it must be the case that A) short run aggregate supply has decreased. B) short run aggregate supply has increased. C) aggregate demand has increased. D) aggregate demand has decreased." class="answers-bank-image d-inline" rel="preload" >
-Refer to Figure 33-8. Suppose the economy starts at Z. If changes occur that move the economy to a new short run equilibrium of P1 and Y1 , then it must be the case that

Accepted Answer

A)  short run aggregate supply has decreased.
B)  short run aggregate supply has increased.
C)  aggregate demand has increased.
D)  aggregate demand has decreased.E) A) and C)
F) A) and D)

Question 5

When the money supply decreases

Accepted Answer

A)  interest rates fall and so aggregate demand shifts right.
B)  interest rates fall and so aggregate demand shifts left.
C)  interest rates rise and so aggregate demand shifts right.
D)  interest rates rise and so aggregate demand shifts left.E) C) and D)
F) B) and C)

Question 6

In October 2009, the official unemployment rate rose to ​

Accepted Answer

A)  ​10%.
B)  ​8%.
C)  ​6%
D)  ​4%.E) A) and C)
F) A) and B)

Question 7

Which of the following did the Fed do during the recession of 2008-2009?

Accepted Answer

A)  lowered the federal funds rate and sold securities and loans
B)  lowered the federal funds rate and purchased securities and loans
C)  raised the federal funds rate and sold securities and loans
D)  raised the federal funds rate and purchased securities and loansE) A) and D)
F) B) and C)

Question 8

Economic expansions in Europe and China would cause

Accepted Answer

A)  the U.S. price level and real GDP to rise.
B)  the U.S. price level and real GDP to fall.
C)  the U.S. price level to rise and real GDP to fall.
D)  the U.S. price level to fall and real GDP to rise.E) A) and B)
F) A) and C)

Question 9

Which of the following shifts aggregate demand to the left?

Accepted Answer

A)  The price level rises.
B)  Interest rates fall.
C)  The dollar depreciates for some reason other than a change in the price level.
D)  Stock prices fall for some reason other than a change in the price level.E) A) and B)
F) A) and C)

Question 10

The aggregate-demand curve

Accepted Answer

A)  has a slope that is explained in the same way as the slope of the demand curve for a particular product.
B)  is vertical in the long run.
C)  shows an inverse relation between the price level and the quantity of all goods and services demanded.
D)  All of the above are correct.E) A) and D)
F) None of the above

Question 11

The best example of recessions being close to each other in the United States can be found in the ​

Accepted Answer

A)  ​1980s.
B)  ​1970s.
C)  ​1990s.
D)  ​2000s.E) None of the above
F) A) and B)

Question 12

A candidate for political office announces the following policies which, she says, economics clearly demonstrates will lead to higher output in the long run: 1. increase immigration from abroad 2. make trade more open between the US and other countries.

Accepted Answer

A)  1 and 2 both shift long-run aggregate supply right.
B)  1 and 2 both shift long-run aggregate supply left.
C)  1 shifts long-run aggregate supply right, 2 shifts long-run aggregate supply left.
D)  1 shifts long-run aggregate supply left, 2 shifts long-run aggregate supply right.E) All of the above
F) None of the above

Exam 33: Aggregate Demand and Aggregate Supply

If output is above its natural rate, then according to sticky-wage theory

Correct Answer
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When the money supply decreases

Correct Answer
verified

Figure 33-8. -Refer to Figure 33-8. Suppose the economy starts at Z. If changes occur that move the economy to a new short run equilibrium of P₁ and Y₁ , then it must be the case that

Correct Answer
verified

The aggregate quantity of goods and services demanded changes as the price level falls because

Correct Answer
verified

Economic expansions in Europe and China would cause

Correct Answer
verified

In October 2009, the official unemployment rate rose to

Correct Answer
verified

The best example of recessions being close to each other in the United States can be found in the

Correct Answer
verified

Illustrate the classical analysis of growth and inflation with aggregate demand and long-run aggregate supply curves.

Correct Answer
verified
See graph. Over time, technological adv...
View Answer

The aggregate-demand curve

Correct Answer
verified

Which of the following did the Fed do during the recession of 2008-2009?

Correct Answer
verified

Which of the following shifts aggregate demand to the left?

Correct Answer
verified

A candidate for political office announces the following policies which, she says, economics clearly demonstrates will lead to higher output in the long run: 1. increase immigration from abroad 2. make trade more open between the US and other countries.

Correct Answer
verified

Exam 33: Aggregate Demand and Aggregate Supply

If output is above its natural rate, then according to sticky-wage theory

Correct AnswerverifiedShow Answer

When the money supply decreases

Correct AnswerverifiedShow Answer

Figure 33-8. -Refer to Figure 33-8. Suppose the economy starts at Z. If changes occur that move the economy to a new short run equilibrium of P1 and Y1 , then it must be the case that

Correct AnswerverifiedShow Answer

The aggregate quantity of goods and services demanded changes as the price level falls because

Correct AnswerverifiedShow Answer

Economic expansions in Europe and China would cause

Correct AnswerverifiedShow Answer

In October 2009, the official unemployment rate rose to ​

Correct AnswerverifiedShow Answer

The best example of recessions being close to each other in the United States can be found in the ​

Correct AnswerverifiedShow Answer

Illustrate the classical analysis of growth and inflation with aggregate demand and long-run aggregate supply curves.

Correct AnswerverifiedSee graph. Over time, technological adv...View AnswerShow Answer

The aggregate-demand curve

Correct AnswerverifiedShow Answer

Which of the following did the Fed do during the recession of 2008-2009?

Correct AnswerverifiedShow Answer

Which of the following shifts aggregate demand to the left?

Correct AnswerverifiedShow Answer

A candidate for political office announces the following policies which, she says, economics clearly demonstrates will lead to higher output in the long run: 1. increase immigration from abroad 2. make trade more open between the US and other countries.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Figure 33-8. -Refer to Figure 33-8. Suppose the economy starts at Z. If changes occur that move the economy to a new short run equilibrium of P₁ and Y₁ , then it must be the case that

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

In October 2009, the official unemployment rate rose to

Correct Answer
verified

The best example of recessions being close to each other in the United States can be found in the

Correct Answer
verified

Correct Answer
verified
See graph. Over time, technological adv...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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