A) increases investment spending,thereby shifting the AD curve to the left
B) does not shift the AD curve
C) causes the government's budget deficit to fall
D) increases investment spending,thereby shifting the AD curve to the right
E) shifts the AS curve outward
G) A) and E)
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A) lead to a higher wage rate and an upward shift of the aggregate supply curve
B) lead to a lower wage rate and a downward shift of the aggregate supply curve
C) lead to a higher wage rate and a rightward shift of the aggregate demand curve
D) lead to a lower wage rate and a leftward shift of the aggregate demand curve
E) cause no further shifts in the aggregate supply or aggregate demand curve
G) B) and E)
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A) A decrease in the price level
B) A decrease in world oil prices.
C) An increase in world oil prices.
D) A natural disaster that raises unit costs for all firms.
E) A loss of technological capability.
G) A) and B)
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B) False
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A) A decrease in the money supply
B) A decrease in autonomous consumption
C) A prolonged increase in oil prices
D) An increase in government spending
E) A decrease in oil prices
G) A) and D)
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A) The money demand curve shifts leftward,the interest rate drops,the aggregate expenditure line shifts upward,and there is movement downward along the aggregate demand curve.
B) The money demand curve shifts rightward,the interest rate increases,the aggregate expenditure line shifts downward,and there is movement upward along the aggregate demand curve.
C) The money demand curve shifts leftward,the interest rate drops,the aggregate expenditure line shifts downward,and there is movement upward along the aggregate demand curve.
D) The money demand curve shifts rightward,the interest rate increases,the aggregate expenditure line shifts upward,and there is movement downward along the aggregate demand curve.
E) the money demand curve shifts leftward,the interest rate drops,the aggregate expenditure line shifts upward,and there is movement upward along the aggregate demand curve.
G) B) and E)
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A) Increases in government purchases,investment spending,autonomous consumption,taxes,or the money supply
B) Increases in government purchases,investment spending,autonomous consumption,or the money supply
C) Decreases in government purchases,investment spending,autonomous consumption,taxes,or the money supply
D) Increases in government purchases,investment spending,autonomous consumption or taxes
E) Decreases in government purchases or investment spending,and increases in autonomous consumption,taxes,or the money supply
G) B) and E)
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A) increase both real GDP and the price level.
B) decrease both real GDP and the price level.
C) decrease the price level and leave real GDP unchanged.
D) increase the price level and leave real GDP unchanged.
E) increase real GDP and reduce the price level.
G) C) and D)
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A) determines by how much the AD curve shifts
B) is inversely related to the nominal wage rate
C) is influenced by the pricing behavior of all the firms in the economy
D) is unaffected by changes in resource costs
E) is the same thing as the interest rate
G) C) and E)
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A) A reduction in government spending
B) An increase in income tax rates
C) A change in oil prices.
D) A money supply increase.
E) An increase in government spending.
G) C) and E)
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A) is usually caused by a change in the money supply
B) is any event that causes the aggregate supply curve to shift
C) is any event caused by a change in the price level
D) is usually good news for the economy
E) always leads to an increase in the interest rate
G) A) and D)
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A) money demand curve
B) short-run aggregate demand curve
C) long-run aggregate demand curve
D) short-run aggregate supply curve
E) long-run aggregate supply curve
G) None of the above
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A) Prices of non-labor inputs,input requirements per unit of output,and unit costs would all increase,and the economy would move downward along the aggregate supply curve.
B) Prices of non-labor inputs,input requirements per unit of output,and unit costs would all decrease,and the economy would move downward along the aggregate supply curve.
C) Prices of non-labor inputs,input requirements per unit of output,and unit costs would all decrease,and the economy would move upward along the aggregate supply curve.
D) Prices of non-labor inputs,input requirements per unit of output,and unit costs would all increase,and the economy would move upward along the aggregate supply curve.
E) Prices of non-labor inputs and input requirements per unit of output would increase,unit costs would decrease,and the economy would move downward along the aggregate supply curve.
G) B) and E)
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A) relatively stable,but the price level may not be
B) relatively stable,causing the price level to also be relatively stable
C) relatively unstable,despite which the price level remains relatively stable
D) relatively unstable,causing the price level to also be relatively unstable
E) determined by the unit costs of production
G) B) and C)
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A) A negative demand shock
B) A positive supply shock
C) A positive supply shock combined with a positive demand shock
D) A negative supply shock
E) A positive demand shock
G) All of the above
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B) False
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A) represents the relationship between prices and quantities of all goods produced in an economy
B) is derived from equilibrium conditions in the labor and money markets
C) gives the equilibrium level of real GDP corresponding to a given price level
D) is the sum of an economy's individual demand curves
E) plots the interest rate as a function of output
G) All of the above
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A) increase unit costs and increase the price level
B) increase unit costs and decrease the price level
C) decrease unit costs and decrease the price level
D) decrease unit costs and increase the price level
E) have no effect on unit costs or the price level
G) A) and B)
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A) the economy will return to point D unless a demand or supply shock occurred
B) wages will fall and aggregate demand will decrease
C) wages will rise and aggregate demand will increase
D) wages will fall and aggregate supply will increase as the economy moves to point C
E) the full-employment level of real GDP would fall to the equilibrium level of real GDP
G) A) and C)
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A) The equilibrium level of GDP decreases
B) The money supply increases
C) The interest rate falls
D) The aggregate expenditure line shifts upward
E) The open market operation is said to be expansionary.
G) All of the above
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