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Macroeconomics Principles Applications and Tools

Business

Quiz 9 :

Aggregate Demand and Aggregate Supply

Quiz 9 :

Aggregate Demand and Aggregate Supply

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A decrease in personal income taxes will lead to:
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C

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The "short run" in macroeconomics is a period in which prices
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B

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A decrease in government purchases shifts the _______ curve to the _______.
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D

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When output falls below full employment output, we expect that the:
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A leftward shift in the aggregate demand curve cannot be caused by:
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Following Keynes' work in explaining the Great Depression, economists started to make a distinction between
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Rank these three goods in the order of least sticky to most sticky: fresh fish, used cars, steel rods.
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The economy moves from a short- run equilibrium to the long- run equilibrium through:
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In the short run, the formal or informal contracts between firms mean that changes in demand will be reflected primarily in changes in _______ .
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As the marginal propensity to consume decreases, the value of the multiplier
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Suppose an automobile maker producing a certain kind of car suddenly experiences an increase in the demand for the car. In the short run,
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Suppose there are three economies with 3 different consumption functions: Country A: C = 100 + 0.8Y Country B: C = 200 + 0.75 Y Country C: C = 75 + 0.9Y In which of these countries is autonomous consumption the largest?
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Suppose there are three economies with 3 different consumption functions: Country A: C = 100 + 0.8Y Country B: C = 200 + 0.75 Y Country C: C = 75 + 0.9Y In which of these countries is the marginal propensity to consume the largest?
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Recall Application 2, "Two Approaches to Determining the Causes of Recessions," to answer the following questions: -According to the application, a recession caused by a decrease in aggregate supply occurred in:
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An increase in the price level results in a decline in aggregate demand because people's "net worth" decreases and will spend less. This effect is called the:
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If the marginal propensity to consume is 0.5, a decrease in consumption by $100 will shift the aggregate demand curve horizontally to the left by
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Recall Application 1, "Measuring Price Stickiness in Consumer Markets," to answer the following questions: -According to the application, Bils and Klenow found that between 1995- 1997, prices in more than half of the 350 goods that they were studying showed frequent price changes. This finding was contrary to Kashyap's finding because:
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According to the international effect explanation of the downward slope of the AD curve, a higher price level in the U.S. economy causes:
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Recall Application 3, "How the U.S. Economy has Coped with Oil Price Fluctuations," to answer the following questions: -According to the application, surge in the price of oil was caused by the increase in the demand for oil by fast growing countries such as:
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Suppose there are three economies with 3 different consumption functions: Country A: C = 100 + 0.8Y Country B: C = 200 + 0.75 Y Country C: C = 75 + 0.9Y If the government spending increases by 10, in which of these countries would the shift of the AD curve be the largest?
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