An increase in the cost of paper would likely lead to which of the following?

A decrease in the supply of magazines

A recession is a period in which

real domestic output falls for 6 consecutive months

If there is a decrease in aggregate demand, how would this affect inflation and unemployment?

Prices will fall; unemployment will rise

Demand-Pull inflation

if too many dollars chasing too few goods

Which of the following would increase the supply of candy

A decrease in the price of wages for candy factory workers

In the circular flow diagram, which of the following is true in the factor market?

Households sell resources to business firms

Which of the following would cause a movement along the demand curve?

A change in the price of a good

For a nation's real GDP per capita to rise during a year

Real GDP must increase more rapidly than population

Real GDP per capita is found by

Dividing real GDP by population

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AP Macro BM1

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AP Macro

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Questions 24

Answers

1
An increase in the cost of paper would likely lead to which of the following?
An increase in the supply of books
A decrease in the supply of magazines
A movement along the supply curve for books
An increase in the quantity of books supplied
2
A recession is a period in which
nominal domestic output falls
cost-push inflation is present
demand-pull inflation is present
real domestic output falls for 6 consecutive months
3
If there is a decrease in aggregate demand, how would this affect inflation and unemployment?
Prices will fall; unemployment will fall
Prices will rise; unemployment will fall
Prices will rise; unemployment will rise
Prices will fall; unemployment will rise
4
Demand-Pull inflation
happens during the peak phase of the business cycle
occurs only during a recession
if too many dollars chasing too few goods
occurs when cost-push inflation is present
5
Which of the following would increase the supply of candy
A decrease in the price of candy
An increase in the price of candy
An increase in the demand for candy
A decrease in the price of wages for candy factory workers
6
In the circular flow diagram, which of the following is true in the factor market?
Households sell resources to business firms
Products are purchased by households
business firms sell goods and services to households
Households buy resources from business firms
7
Which of the following is true about the natural rate of unemployment
It is 2% or less of the civilian labor force
It allows for some frictional and cyclical unemployment
It can vay over time
It consists of the cyclical unemployment rate
8
Which of the following would cause a movement along the demand curve?
Changes in tastes for that good
A change in the price of a good
Changes in expectations
A change in the income of buyers of that good
9
A price ceiling
Can lead to wasted resources
Causes inefficient allocation of sales among sellers
Is a lower limit on the price that is allowed to be charged
Leads to Surpluses
10
For a nation's real GDP per capita to rise during a year
Population must increase more rapidly than real GDP
Investment spending must increase
Real GDP must increase more rapidly than population
Consumption spending must increase
11
An increase in the stock of physical capital will indicate
SRAS is increasing
Aggregate demand is increasing
SRAS is decreasing
Aggregate demand is decreasing
12
The most important determinant of consumer spending is
consumer expectations
the stock of wealth
the level of income
the level of household debt
13
Which of the following is a short-run aggregate supply determinant?
Increased Investment spending
Productivity
Changes in wealth
Changes in Expectations
14
The phase of the business cycle in which real GDP is at a minimum is called
the peak
a recession
the pits
the trough
15
Which of the following could shift the Long-Run Aggregate Demand Curve
Quantity of resources
Changes if expectations
An increase in the stock of physical capital
Changes in wealth
16
An inverse relationship between the quantity demanded and price is called the law of
Supply
Marginality
Efficiency
Demand
17
Which of the following is an aggregate demand determinant
Productivity
Inflation expectations
Commodity prices
Changes in wealth
18
Which of the following could Congress do to help prevent a recession?
Increase Taxes
Decrease the Interest rate
Increase the Interest rate
Decrease Taxes
19
If the primary goal is to reduce inflation, which of the following fiscal policy actions would be appropriate?
Increase interest rates
Decrease Taxes
Increase Taxes
Decrease government spending
20
To be officially unemployed a person must
have just lost a job with the last 2 weeks
Be in the labor force
be waiting to be called back from a layoff
be 21 years of age
21
Real GDP per capita is found by
adding real GDP and population
Dividing real GDP by population
subtracting population from real GDP
Dividing population by real GDP
22
The largest component of total expenditures in the U.S. is
Gross Investment
Consumption
Net Exports
Government Purchases
23
Which of the following measures economic growth
The PPC
The Business Cycle
CPI
GDP
24
All points inside the Production Possibilities Curve represent:
Efficient production points
Economic Growth
Inefficient Production Points
Nonfeasible Production Points

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