FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 31: Aggregate Demand and Aggregate Supply

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

True/False

Review LaterAdd Note

Review Later

The real-balances effect indicates that inflation makes the public feel wealthier and they therefore spend more out of their current incomes.

A) True
B) False

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

What percentage of the average U.S.firm's costs are accounted for by wages and salaries?

A) 40.
B) 60.
C) 75.
D) 85.

E) All of the above
F) C) and D)

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

Other things equal,if the national incomes of the major trading partners of the United States were to rise,the U.S.:

A negative GDP gap can be caused by either a decrease in aggregate demand or a decrease in aggregate supply.

The real-balances,interest-rate,and foreign purchases effects all help explain:

Answer the question on the basis of the following information about the relationship between input quantities and real domestic output in a hypothetical economy: $\begin{array} { c c } \text { Input Quantity } & \text { Real Domestic Output } \\ 100 & 200 \\150 & 300 \\200 & 400\end{array}$ Refer to the table.The level of productivity in the economy is:

An increase in net exports will shift the:

Answer the question on the basis of the following table for a particular country in which C is consumption expenditures,I_g is gross investment expenditures,G is government expenditures,X is exports,and M is imports.All figures are in billions of dollars.Each question is independent of other question using the same table,unless otherwise stated. $\begin{array}{c}\begin{array}{c}\underline{\text {Price Level}}\\128 \\125 \\122 \\119 \\116\end{array}\begin{array}{c}\underline{\text {C}} \\ \$ 18 \\20 \\22 \\24 \\26\end{array}\begin{array}{c}\underline{\mathrm{I}_{\mathrm{g}} }\\ \$ 2 \\4 \\6 \\8 \\10\end{array}\begin{array}{c}\underline{\text {G }}\\ \$ 3 \\3 \\3 \\3 \\3\end{array}\begin{array}{c}\underline{\text {X }}\\\$ 1 \\2 \\3 \\4 \\5\end{array}\begin{array}{c}\underline{\text {M}} \\ \$ 5 \\4 \\3 \\2 \\1\end{array}\begin{array}{c}\underline{\text {Real GDP}} \\ \\\\\\ \\\\\end{array}\end{array}$ Refer to the table.The real-balances effect of changes in the price level is:

An increase in business excise taxes will shift the aggregate supply curve leftward.

When aggregate demand declines,some firms may reduce employment rather than wages because wage reductions may:

Suppose that real domestic output in an economy is 20 units,the quantity of inputs is 10,and the price of each input is $4.Answer the following question on the basis of this information. Refer to the information.Given an increase in input price from $4 to $6,we would expect the aggregate:

Which of the following is a true statement?

When deriving the aggregate demand (AD) curve from the aggregate expenditures model,an increase in U.S.product prices would cause an increase in:

Answer the question on the basis of the following table for a particular country in which C is consumption expenditures,I_g is gross investment expenditures,G is government expenditures,X is exports,and M is imports.All figures are in billions of dollars.Each question is independent of other question using the same table,unless otherwise stated. $\begin{array}{c}\begin{array}{c}\underline{\text {Price Level}}\\128 \\125 \\122 \\119 \\116\end{array}\begin{array}{c}\underline{\text {C}} \\ \$ 18 \\20 \\22 \\24 \\26\end{array}\begin{array}{c}\underline{\mathrm{I}_{\mathrm{g}} }\\ \$ 2 \\4 \\6 \\8 \\10\end{array}\begin{array}{c}\underline{\text {G }}\\ \$ 3 \\3 \\3 \\3 \\3\end{array}\begin{array}{c}\underline{\text {X }}\\\$ 1 \\2 \\3 \\4 \\5\end{array}\begin{array}{c}\underline{\text {M}} \\ \$ 5 \\4 \\3 \\2 \\1\end{array}\begin{array}{c}\underline{\text {Real GDP}} \\ \\\\\\ \\\\\end{array}\end{array}$ Refer to the table.Which of the following schedules constitutes aggregate demand in this country?

If personal taxes were decreased and resource productivity increased simultaneously,the equilibrium:

Answer the question on the basis of the following information about the relationship between input quantities and real domestic output in a hypothetical economy: $\begin{array} { c c } \text { Input Quantity } & \text { Real Domestic Output } \\100 & 200 \\150 & 300 \\200 & 400\end{array}$ Refer to the table.Suppose that the price of each input increased from $5 to $8.The per-unit cost of production in the economy would:

In response to the Great Recession,the federal government engaged in significant deficit-funded spending.What was the result of that spending over the first three years?

Efficiency wages are:

Answer the question on the basis of the following aggregate demand and supply schedules for a hypothetical economy: $\begin{array}{c}\begin{array}{c}\text {Amount of Real }\\\underline{\text {Output Demanded}}\\\$ 200 \\300 \\400 \\500 \\600\end{array}\begin{array}{c}\text {Price Level}\\\underline{\text {(Index Value) }}\\300\\250\\200\\150\\100\end{array}\begin{array}{c}\text {Amount of Real}\\\underline{\text {Output Supplied}}\\\$ 500 \\450 \\400 \\300 \\200\end{array}\end{array}$ Refer to the data.If the price level is 250 and producers supply $450 of real output:

The aggregate demand curve: