Lesson 9 Homework

What relationship is shown by the aggregate demand? curve? The aggregate demand curve shows the relationship between

What relationship is shown by the aggregate supply? curve? The short run aggregate supply curve shows the relationship in the short run between

The aggregate demand curve slopes downward for all of the following reasons? except:

The aggregate demand curve slopes downward due to the _______ effect, the ________________effect, and the ____________ effect, nd the demand curve for an individual product slopes downward due to__________

Increases in firms' expectations of their future profitability and investment spendingwill make the aggregate demand curve shift

An economics student makes the following? statement: ?"It's easy to understand why the aggregate demand curve is downward? sloping: When the price level? increases, consumers substitute into less expensive? products, thereby decreasing total spending in the? economy." This statement is false because the aggregate demand curve is

Which of the following statements is correct if real GDP in the United States declined by more during the 2007minus?2009 recession than did real GDP in? Canada, China, and other trading partners of the United? States? A. U.S. exports fell more than the? imports, leading to a fall in net exports. B. Imports to the United States fell more than the U.S.? exports, leading to a decrease in net exports. C. U.S. exports fell more than the? imports, leading to an increase in net exports. D. Imports to the United States fell more than the U.S.? exports, leading to an increase in net exports.

The aggregate demand curve is downward sloping because

Aggregate demand? (AD) is comprised of expenditure components that? include:

ich of the following would cause a decrease in aggregate? demand? A. a decrease in taxes B. a decrease in government spending C. a depreciation in the U.S. dollar relative to foreign currencies D. a decrease in interest rates through monetary policy E. All of the above

The wealth effect refers to the fact that

The interest rate effect refers to the fact that a higher price level results in

The? international-trade effect refers to the fact that an increase in the price level will result in

If the price level? increases, then A there will be a movement up along a stationary aggregate demand curve. B. the aggregate demand curve will shift to the left. C. the aggregate demand curve will shift to the right. D. none of the above will occur.

Which of the following factors does not cause the aggregate demand curve to? shift? A. a change in the price level B. a change in government monetary or fiscal policies C. a change in foreign variables D. a change in the expectations of households and firms

How can government policies shift the aggregate demand curve to the? right? A. by increasing government purchases B. by increasing business taxes C. by increasing personal income taxes D. All of the above.

The difference between aggregate expenditure and aggregate demand is? that:

When the price level rises from 104 to? 124, real GDP falls from? $5 trillion to? $4 trillion. What is a possible explanation for this? event? A. Falling exports B. Decreased consumption C. Less investment D. All of the above

The? long-run aggregate supply curve is vertical because in the long? run,

]More capital accumulation will cause the? long-run aggregate supply curve to

The? short-run aggregate supply curve slopes upward because of all of the following reasons except A. in the short? run, as prices of final goods and services? increase, input prices react more slowly. B. in the short? run, prices of final goods and services adjust slowly due to the existence of menu costs. C. in the short? run, an unexpected change in the price of an important resource can change the cost to firms. D. in the short? run, as prices of final goods and services? increase, some firms are very slow to adjust their? prices, thus their sales increase.

Menu costs are

If menu costs were? eliminated, the? short-run aggregate supply curve will be ___________ sloping because of __________________________________-

The position of the? long-run aggregate supply? (LRAS) curve is determined by

Why does the? short-run aggregate supply curve? (SRAS) slope? upward? A. Firms and workers fail to predict changes in the price level. B. Prices of final goods rise more quickly than the prices of inputs. C. Contracts keep wages? "sticky". D. All of the above. E. A and B only.

Which of the following statements is? true? A. In the long? run, increases in the price level result in an increase in real GDP. B. In the long? run, changes in the price level do not affect the level of real GDP. C. In the long? run, increases in the price level result in a decrease in real GDP. D. In the long? run, changes in the price level may either increase or decrease real GDP.

Which of the following factors will cause the? long-run aggregate supply curve to shift to the? right? A. the accumulation of more machinery and equipment B. technological change C. an increase in the number of workers in the economy D. All of the above.

Which of the following causes the? short-run aggregate supply curve to shift to the? right? A. a higher expected future price level B. a decrease in the capital stock C. an increase in the expected price of an important natural resource D. a positive technological change

Which of the following causes the? short-run aggregate supply curve to shift to the? left? A. an increase in the expected price of an important natural resource B. an increase in productivity C. a positive technological change D. an increase in the labor force

A supply shock is A. an increase in the rate of inflation as a result of expansionary fiscal? policy, resulting in a leftward shift of the SRAS curve. B. an increase in both the inflation and the unemployment rates that may sometimes result in a rightward shift of the SRAS curve. C. a sudden increase in the price of an important natural? resource, resulting in a leftward shift of the SRAS curve. D. an increase in potential GDP caused by a government expenditure? multiplier, resulting in a leftward shift of the AD curve.

stagflation is a combination of...

Stagflation occurs when

In? 1969, actual real GDP was greater than potential real GDP. Which of the following best explains? this?

b. Even though real GDP in 1970 was slightly greater than real GDP in? 1969, the unemployment rate increased substantially from 1969 to 1970. Which of the following explains how unemployment could have increased even though output did not? change?