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Econ Final 12

Abigail Collins avatar Abigail Collins
21 February 2024
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24 test answers

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question
The aggregate demand curve shows the:
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Inverse relationship between the price level and real GDP purchased
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The labels for the axes of the aggregate demand graph should be:
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Real domestic output on the horizontal axis and the price level on the vertical axis
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Which of the following effects best explains the downward slope of the aggregate demand curve?
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An interest-rate effect
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The following factors explain the downward slope of the aggregate demand curve, except:
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A substitution effect
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The foreign purchases, interest rate, and real-balances effects explain why the:
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Aggregate demand curve is downward-sloping
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An expected decline in the future prices of consumer goods will:
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Decrease aggregate demand now
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A decrease in expected returns on investment will most likely shift the AD curve to the:
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Left because Ig will decrease
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In the Great Recession of 2007-2009, the stock market values shrank, causing a reverse:
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Wealth effect
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Which of the following events would most likely reduce aggregate demand?
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An increase in real interest rates
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A decrease in government spending will cause a(n):
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Decrease in aggregate demand
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If the dollar appreciates in value relative to foreign currencies:
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Aggregate demand decreases because net exports decrease
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If the dollar depreciates in value relative to foreign currencies, then aggregate:
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Demand increases
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When national income in other nations decreases, aggregate demand in our economy:
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Decreases because our exports will decrease
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An aggregate supply curve represents the relationship between the:
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Price level and the production of real domestic output
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The labels for the axes of an aggregate supply curve should be:
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Real domestic output for the horizontal axis and price level for the vertical axis
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The immediate-short-run aggregate supply curve is:
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Horizontal
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The short-run aggregate supply curve shows the:
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Direct relationship between the price level and real GDP produced
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The long-run aggregate supply curve is:
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Vertical
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A fall in the prices of inputs will shift the aggregate:
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Supply curve rightward
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An increase in productivity will:
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Increase aggregate supply
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If the price of crude oil decreases, then this event would most likely:
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Increase aggregate supply in the U.S.
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If Congress passed new laws significantly increasing the regulation of business, this action would tend to:
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Increase per-unit production costs and shift the aggregate supply curve to the left
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The intersection of the aggregate demand and aggregate supply curves determines the:
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Equilibrium level of real domestic output and prices
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An increase in the aggregate expenditures schedule:
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Increases aggregate demand by the amount of the initial increase in aggregate expenditures times the multiplier