Filters
Question type
Study Flashcards

Figure 14-1 Figure 14-1 -Refer to the Figure 14-1.How would an adverse shift in aggregate supply move the economy? A) from A to B B) from C to D C) from B to A D) from D to C Figure 14-1 -Refer to the Figure 14-1.How would an adverse shift in aggregate supply move the economy? A) from A to B B) from C to D C) from B to A D) from D to C -Refer to the Figure 14-1.How would an adverse shift in aggregate supply move the economy?


A) from A to B
B) from C to D
C) from B to A
D) from D to C

E) None of the above
F) All of the above

Correct Answer

verifed

verified

Which statement best explains the downward slope of the aggregate-demand curve?


A) As the Canadian price level increases,the dollar depreciates and people buy more imports.
B) As the Canadian price level increases,the interest rate falls and firms invest less.
C) As the Canadian price level increases,people feel less wealthy and buy less goods and services.
D) As the Canadian price level increases,people buy more substitute goods.

E) None of the above
F) B) and C)

Correct Answer

verifed

verified

Figure 14-1 Figure 14-1 -Refer to the Figure 14-1.Which path indicates how the economy would move to long run equilibrium? A) from A to B B) from C to B C) from D to C D) From C to A Figure 14-1 -Refer to the Figure 14-1.Which path indicates how the economy would move to long run equilibrium? A) from A to B B) from C to B C) from D to C D) From C to A -Refer to the Figure 14-1.Which path indicates how the economy would move to long run equilibrium?


A) from A to B
B) from C to B
C) from D to C
D) From C to A

E) C) and D)
F) B) and C)

Correct Answer

verifed

verified

What are the effects of an increase in the price level?


A) The interest rate increases,the dollar depreciates,and net exports increase.
B) The interest rate increases,the dollar appreciates,and net exports decrease.
C) The interest rate decreases,the dollar depreciates,and net exports increase.
D) The interest rate decreases,the dollar appreciates,and net exports decrease.

E) B) and C)
F) A) and B)

Correct Answer

verifed

verified

Suppose a shift in aggregate demand creates an economic contraction.If policymakers can respond with sufficient speed and precision,how can they offset the initial shift?


A) by shifting the aggregate supply right
B) by shifting the aggregate supply left
C) by shifting the aggregate demand right
D) by shifting the aggregate demand left

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

In the mid-1970s the price of oil rose dramatically.What did this event cause?


A) It shifted aggregate supply left.
B) It caused Canadian prices to fall.
C) The aggregate demand increased because of an increase in the demand for gasoline.
D) OPEC to increase oil production

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

Correct Answer

verifed

verified

A decrease in the price level makes consumers feel wealthier,so they purchase more.This logic helps explain why the aggregate demand curve slopes downward.

A) True
B) False

Correct Answer

verifed

verified

Changes in the price level affect which component of aggregate demand?


A) only consumption and investment
B) only consumption and net exports
C) only consumption
D) consumption,investment,and net exports

E) C) and D)
F) A) and B)

Correct Answer

verifed

verified

How much has Canada changed its oil consumption since the first OPEC price shock in 1973?


A) increased by 20%
B) decreased by 30%
C) increased by 40%
D) decreased by more than 50%

E) A) and C)
F) B) and C)

Correct Answer

verifed

verified

Which statement best describes the effects of a fall in the price level?


A) The real value of money and the real exchange rate rise.
B) The real value of money and the real exchange rate fall.
C) The real value of money rises,and the real exchange rate falls.
D) The real value of money falls,and the real exchange rate rises.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

What would cause prices and real GDP to rise in the short run?


A) short-run aggregate supply shifts right
B) short-run aggregate supply shifts left
C) aggregate demand shifts right
D) aggregate demand shifts left

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

Correct Answer

verifed

verified

Review the sticky-wage theory of the short-run aggregate-supply curve. a)Use the sticky-wage theory to explain why the short-run aggregate-supply curve is upward sloping. b)Based on the same theory,construct an argument to explain why the aggregate-demand curve is downward sloping.Though simple and appealing,why may this theory not completely explain the short-run aggregate-demand curve?

Correct Answer

verifed

verified

a)When the price level increases beyond ...

View Answer

What happens when the dollar appreciates?


A) Canadian exports decrease while imports increase.
B) Canadian exports and imports decrease.
C) Canadian exports and imports increase.
D) Canadian exports increase while imports decrease.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

When taxes increase,consumption decreases.How is this situation represented in the aggregate demand and aggregate supply model?


A) by a movement to the left along a given aggregate-demand curve
B) by shifting aggregate demand to the left
C) by shifting aggregate supply to the left
D) by a movement to the right along a given aggregate-demand curve

E) None of the above
F) A) and B)

Correct Answer

verifed

verified

What is an important determinant of the price at which Canadian producers can sell their oil?


A) their ability to ship oil to the U.S.and to overseas markets
B) their ability to ship oil to the U.S.market only
C) their ability to ship oil to overseas markets only
D) their ability to ship oil domestically

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

Correct Answer

verifed

verified

Which statement is consistent with the theory of aggregate supply?


A) An increase in the expected price level shifts the short-run aggregate-supply curve to the right,and an increase in the actual price level shifts the short-run aggregate supply to the right.
B) An increase in the expected price level shifts the short-run aggregate-supply curve to the right,and an increase in the actual price level does not shift the short-run aggregate supply.
C) An increase in the expected price level shifts the short-run aggregate-supply curve to the left,and an increase in the actual price level shifts the short-run aggregate supply to the left.
D) An increase in the expected price level shifts the short-run aggregate-supply curve to the left,and an increase in the actual price level does not shift the short-run aggregate supply.

E) B) and C)
F) A) and C)

Correct Answer

verifed

verified

All else equal,what happens as the price level falls?


A) The money supply falls.
B) Interest rates rise.
C) Dollars become more valuable.
D) Dollars become less valuable.

E) A) and D)
F) B) and C)

Correct Answer

verifed

verified

Suppose the economy is in long-run equilibrium.If there is a sharp decline in the stock market combined with a significant increase in immigration of skilled workers,what would we expect to happen?


A) In the short run,real GDP will rise,and the price level might rise,fall,or stay the same.In the long-run,real GDP will rise,and the price level might rise,fall,or stay the same.
B) In the short run,the price level will fall,and real GDP might rise,fall,or stay the same.In the long-run,real GDP and the price level will be unaffected.
C) In the short run,the price level will rise,and real GDP might rise,fall,or stay the same.In the long run,real GDP will rise,and the price level will fall.
D) In the short run,the price level will fall,and real GDP might rise,fall,or stay the same.In the long run,real GDP will rise,and the price level will fall.

E) None of the above
F) A) and B)

Correct Answer

verifed

verified

What is classical dichotomy?


A) It is the separation of variables that move with the business cycle and variables that do not.
B) It is the separation of changes in money and changes in government expenditures.
C) It is the separation of endogenous and exogenous variables.
D) It is the separation of real and nominal variables.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

How does the aggregate demand and supply model reflect a decrease in taxes?


A) Consumption increases,so aggregate demand shifts right.
B) Consumption increases,so aggregate supply shifts right.
C) Consumption decreases,so aggregate demand shifts left.
D) Consumption decreases,so aggregate supply shifts left.

E) A) and D)
F) None of the above

Correct Answer

verifed

verified

Showing 161 - 180 of 257

Related Exams

Exam 1

Ten Principles of Economics

216 Questions

Exam 2

Thinking Like an Economist

234 Questions

Exam 3

Interdependence and the Gains From Trade

206 Questions

Exam 4

The Market Forces of Supply and Demand

349 Questions

Exam 5

Measuring a Nations Income

169 Questions

Exam 6

Measuring the Cost of Living

181 Questions

Exam 7

Production and Growth

191 Questions

Exam 8

Saving, investment, and the Financial System

213 Questions

Exam 9

Unemployment and Its Natural Rate

197 Questions

Exam 10

The Monetary System

204 Questions

Exam 11

Money Growth and Inflation

195 Questions

Exam 12

Open-Economy Macroeconomics: Basic Concepts

220 Questions

Exam 13

A Macroeconomic Theory of the Small Open Economy

196 Questions

Exam 15

The Influence of Monetary and Fiscal Policy on Aggregate Demand

222 Questions

Exam 16

The Short-Run Tradeoff Between Inflation and Unemployment

207 Questions

Exam 17

Five Debates Over Macroeconomic Policy

119 Questions

Show Answer