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Mankiw Chapter 10 Flashcards | StudBud
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Mankiw Chapter 10
Mankiw Chapter 10
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Flashcards
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Practice quiz
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Questions
15
Answers
1
Real GDP % = 3 % - 2 * change in unemployment. Unemployment decreased by 1 %. Corresponding level of GDP growth?
5 %
4 %
1 %
3 %
2
Why is the AD curve downward sloping?
Because marginal utility is positive
Because of production function.
Because of marginal propensity to consume.
Because of quantity equation ( M * V = P * Y)
3
In a price - GDP - diagram: AD curve is downward sloping!
False
True
4
About 50 % of all companies change their prices only once a year or less than once a year!
True
False
5
A very big earthquake can be regarded as a supply shock.
False
True
6
A lot of different theories might explain price stickyness.
False
True
7
An increase in the oil price is a supply shock.
True
False
8
What happens in the long run, when demand increases?
Prices up, GDP down
Prices constant, GDP up
Prices up, GDP up
Prices up, GDP constant
9
Is it really the case that some companies change their prices more than once a day?
True
False
10
Initial claims of unemployment is one leading indicator for GDP growth.
False
True
11
Consumption is much more volatile than investment.
True
False
12
When the central bank increases money supply: This is a supply shock in the AS/AD model.
True
False
13
Why are prices sticky? Most important: Pricing points (like 9.99 DKK).
True
False
14
What happens in the short run, when demand increases?
Prices up, GDP down
Prices constant, GDP up
Prices up, GDP up
Prices up, GDP constant
15
SRAD curve is horizontal LRAD curve is vertical
True
False
