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Principles of Macroeconomics

Business

Quiz 13 :

Using the Economic Fluctuations Model

Quiz 13 :

Using the Economic Fluctuations Model

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Which of the following is another term for the recovery period?
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Answer:

A

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The long-run effect of a decrease in government purchases can be described as the period of time when
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Answer:

A

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Exhibit 25-1 img -Suppose the economy is initially at point A in Exhibit 25-1. If government purchases increase, which point best depicts where the economy will be in the long run as a result of the change in spending?
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Answer:

A

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The long run is usually
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The short-run effects of an increase in government purchases are that inflation will ____, and real GDP will ____.
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The long-run effects of an increase in government purchases are that interest rates will ____, inflation will ____, and real GDP will ____.
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Exhibit 25-1 img -Suppose the economy is initially at point A in Exhibit 25-1. If government purchases increase, which point best depicts where the economy will be in the short run as a result of the change in spending?
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The medium run is usually
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The short-run effect of an increase in government purchases is
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The economic fluctuations model is used by economists to determine the path the economy takes after a shift in aggregate demand.
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The short run is usually
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If a shock to aggregate demand occurs, the period of the initial change in real GDP is called
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When government purchases decrease, the short-run effect can be described as the period of time when
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If real GDP is below potential GDP,
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The initial response of real GDP to a change in aggregate spending is referred to as
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Exhibit 25-1 img -Suppose the economy is initially at point A in Exhibit 25-1. If government purchases increase, which point best depicts where the economy will be in the medium run as a result of the change in spending?
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If real GDP stays below potential GDP,
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The long-run effect of a change in expenditures occurs when
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In the economic fluctuations model, the so-called short run normally refers to
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In a diagram that includes both the IA line and the AD curve, the price adjustment resulting from an increase in spending is shown by
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