Buy National Income and Price Determination

Buy National Income and Price Determination
Order 5893748
Buy National Income and Price Determination
1. The aggregate demand curve is downward sloping because of
(A) the real-balances effect
(B) the interest rate effect
(C) the substitute effect
(D) the crowding out effect
(E) both A and B
Use the following diagram to answer question 72.
2. According to the preceding diagram, the most favorable shift of the
aggregate supply curve in an economy would be
(A) AS1 to AS2
(B) AS1 to AS3
(C) AS2 to AS3
(D) AS3 to AS1
(E) cannot be determined without knowing the aggregate demand
curve
3. 0% unemployment, or when all individuals who are willing and able
to work are employed, is known as
(A) full employment
(B) the equilibrium price at full employment
(C) the velocity of money
(D) the quantity theory of money
(E) cost-push inflation
Buy National Income and Price Determination
4. The gross domestic product is calculated in a way to avoid
(A) double counting
(B) clashes between the income and expenditure approach
(C) discrepancies between real and nominal wages
(D) discrepancies between real and nominal GDP
(E) economic fluctuations
5. The multiplier effect refers to
(A) government regulations that affect the GDP
(B) any change in aggregate expenditures always decreases GDP
(C) any change in aggregate expenditures creates a bigger change in
GDP
(D) the MPS will always be greater than 1
(E) none of the above
6. All of the following will cause the aggregate demand curve to shift
EXCEPT
(A) change in consumer income
(B) change in price level
(C) a decrease in government spending
(D) an increase in net exports
(E) an increase in net imports
7. Which of the following factors will shift the aggregate supply curve
to the right?
(A) An increase in productivity
(B) Increased wages for workers
(C) An increase in government regulations
(D) Consumer income increases
(E) None of the above
Buy National Income and Price Determination
8. The aggregate supply curve
(A) is best explained by the interest rate effect
(B) shows the amount of real output that producers are willing and
able to produce at each price level
(C) is upward sloping because of the real balances effect
(D) reflects the amount of real output that consumers are willing and
able to purchase at each price level
(E) becomes vertical in the short run
9. Other things being equal, a shift of the aggregate supply curve to the
left involves all of the following EXCEPT
(A) an increase in government regulation
(B) a decrease in workers’ wages
(C) a decrease in the labor force
(D) an increase in taxes
(E) a decrease in productivity
10. The interest rate effect suggests
(A) a decrease in the money supply will increase interest rates
(B) an increase in the price level will decrease the demand for
money
(C) an increase in the price level will lead consumers and businesses
to borrow more money, which increases the interest rate
(D) a decrease in the price level will lead consumers and businesses
to borrow more money, which increases the interest rate
(E) an increase in the price level will lead consumers and businesses
to borrow less money, which increases the interest rate
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