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Which would most likely shift the aggregate supply curve? A change in the prices of:


A) Domestic products
B) Foreign products
C) Financial assets
D) Resources

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Menu costs will:


A) Increase the amount of training of workers
B) Result in price wars between businesses
C) Increase the legal minimum wage
D) Make prices inflexible downward

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The table below shows the aggregate demand and aggregate supply schedules for a hypothetical economy. The table below shows the aggregate demand and aggregate supply schedules for a hypothetical economy. Refer to the table above. The equilibrium price and output levels will be: A) 200 and $5000 B) 200 and $6000 C) 250 and $7000 D) 300 and $8000 Refer to the table above. The equilibrium price and output levels will be:


A) 200 and $5000
B) 200 and $6000
C) 250 and $7000
D) 300 and $8000

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An aggregate supply curve represents the relationship between the:


A) Price level and the buying of real domestic output
B) Price level and the production of real domestic output
C) Real domestic output bought and the real domestic output sold
D) Price level that producers are willing to accept and the price level buyers are willing to pay

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Macroeconomic equilibrium in the short run always occurs at full-employment GDP.

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A change in business taxes and regulation can affect production costs and aggregate supply.

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The immediate-short-run aggregate supply curve is:


A) Vertical
B) Horizontal
C) Upward-sloping
D) Downward-sloping

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Which of the following would not shift the aggregate demand curve? Changes in:


A) Productivity rates
B) Foreign-exchange rates
C) Real interest rates
D) Income tax rates

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A decrease in aggregate supply means:


A) Both the real domestic output and the price level would decrease
B) The real domestic output would increase and rises in the price level would become smaller
C) The real domestic output would decrease and the price level would rise
D) Both the real domestic output and rises in the price level would become greater

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Answer the question based on the following list of items that are related to aggregate demand and/or aggregate supply. Answer the question based on the following list of items that are related to aggregate demand and/or aggregate supply. Refer to the list above. A change in which factor is most likely to change both aggregate demand and aggregate supply? A) 3 B) 5 C) 7 D) 6 Refer to the list above. A change in which factor is most likely to change both aggregate demand and aggregate supply?


A) 3
B) 5
C) 7
D) 6

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When there is an increase in aggregate demand in the short run, there will be an increase in the price level but not in the level of output or employment.

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A decrease in personal and business taxes will cause government spending and aggregate demand to decrease.

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Refer to the graph above. When output increases from Q<sub>1</sub> and the price level decreases from P<sub>1</sub>, this change will: A) Be caused by a shift in the aggregate supply curve from AS<sub>1</sub> to AS<sub>2</sub> B) Be caused by a shift in the aggregate supply curve from AS<sub>1</sub> to AS<sub>3</sub> C) Result in a movement along the aggregate demand curve from e<sub>1</sub> to e<sub>2</sub> D) Result in a movement along the aggregate demand curve from e<sub>3</sub> to e<sub>1</sub> Refer to the graph above. When output increases from Q1 and the price level decreases from P1, this change will:


A) Be caused by a shift in the aggregate supply curve from AS1 to AS2
B) Be caused by a shift in the aggregate supply curve from AS1 to AS3
C) Result in a movement along the aggregate demand curve from e1 to e2
D) Result in a movement along the aggregate demand curve from e3 to e1

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If the U.S. dollar appreciates in value relative to foreign currencies, then this will:


A) Increase aggregate demand and aggregate supply
B) Decrease aggregate demand and aggregate supply
C) Decrease aggregate demand and increase aggregate supply
D) Increase aggregate demand and decrease aggregate supply

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The aggregate demand curve shows that when the price level rises, the quantity of real output demanded decreases.

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Demand-pull inflation is illustrated in the short run aggregate supply-aggregate demand model as a shift of the aggregate:


A) Supply to the right
B) Supply to the left
C) Demand to the right
D) Demand to the left

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The intersection of the aggregate demand and aggregate supply curves determines the:


A) Productivity level in the economy
B) Shape of the aggregate demand curve
C) Per-unit cost of production in the economy
D) Equilibrium level of real domestic output and prices

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Answer the question based on the following list of factors that are related to the aggregate demand curve. Answer the question based on the following list of factors that are related to the aggregate demand curve. Refer to the list above. Investment spending would most likely be influenced by changes in: A) 1 and 3 B) 4 and 6 C) 5 and 10 D) 8 and 9 Refer to the list above. Investment spending would most likely be influenced by changes in:


A) 1 and 3
B) 4 and 6
C) 5 and 10
D) 8 and 9

Correct Answer

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If the price level increases, then the aggregate expenditures schedule will shift down and the aggregate demand curve will shift to the left.

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Answer the question based on the following list of factors that are related to the aggregate demand curve. Answer the question based on the following list of factors that are related to the aggregate demand curve. Changes in which two of the factors in the list above would most likely cause a shift in aggregate demand due to a change in consumer spending? A) 1 and 3 B) 2 and 4 C) 5 and 10 D) 8 and 9 Changes in which two of the factors in the list above would most likely cause a shift in aggregate demand due to a change in consumer spending?


A) 1 and 3
B) 2 and 4
C) 5 and 10
D) 8 and 9

Correct Answer

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Showing 21 - 40 of 152

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