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Macro unit 3 mid review Flashcards | StudBud

Explore/Macro unit 3 mid review

An increase in consumer spending will most likely cause the PL & real GDP to change how (SR)

Decrease in wages & prod costs will change PL & GDP in the SR how?

Macro unit 3 mid review

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mid unit review

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Questions 9

Answers

1
Decrease in wages & prod costs will change PL & GDP in the SR how?
PL decrease GDP increase
PL Increase GDP no change
PL increase GDP increase
PL increase GDP decrease
2
An increase in consumer spending will most likely cause the PL & real GDP to change how (SR)
PL increase GDP no change
PL Increase GDP decrease
PL decrease GDP increase
PL increase GDP increase
3
The intersection of the AD and AS curves occurs at the economy's equilibrium level of
Government taxes & employment
Nominal investment & the interest rate
Real disposable income & unemployment
Real domestic output and the price level
4
A negative supply shock would most likely result in...
an increase in employment
a decrease in general PL
a decrease in AD
A decrease in general productivity
5
LRAS curve
is a horizontal line at full employment
is a vertical line at full employment
6
Wages and resource prices will not increase as price levels increase in the
Long Run
Short Run
7
Why is the AD curve downward sloping?
The real balance effect
The interest rate effect
The foreign trade effect
All of these
8
Which one of these will not shift aggregate demand?
New tax law increases tax burden on citizens
Government imposes a new excise tax on businesses
A key importer of US goods suffers a sever recession
The cost of borrowing funds decreases for businesses
9
The AS curve will shift when there is a change in a component of GDP (C, I, G, X_n)
True
False