stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Exam 2 Review (chapters 11-15) Flashcards | StudBud
Explore
/
Exam 2 Review (chapters 11-15)
Exam 2 Review (chapters 11-15)
15 terms
·
StudBud Administration
·
2,238 plays
Imported from external platform
Flashcards
15 cards
F
Practice quiz
P
Host live
L
Questions
15
Answers
1
Which of the following would have caused aggregate demand to decrease on the graph?
Lower expected future income
An increase in the money supply
Removal of tariffs on imports
An increase in real wealth
2
During the Great Depression, AD decreased. As a result, the price level ___, real GDP ____ & unemployment ____
fell, rose, fell
fell, fell, fell
rose, fell, fell
fell, fell, rose
3
If this country experiences a war that decreases capital, then
there will be an upward movement along the production function.
there will be a downward movement along the production function.
the production function will shift upward.
the production function will shift downward.
4
Which of the following factors is positively correlated with economic growth?
high barriers to international trade
restrictions on immigration
political stability and the rule of law
collectively owned resources
5
This production function exhibits diminishing returns to capital for
no units of capital.
all units of capital after the third.
all units of capital after the second.
all units of capital after the first.
6
If an economy is growing at a rate of 7% per year, how long will it take the economy to double in size?
10 years
14 years
7 years
20 years
7
If long-range aggregate supply (LRAS) shifts right, we know for certain that there has been
a decrease in the price level.
an increase in AD.
economic growth.
a decrease in aggregate demand (AD).
8
The federal budget deficit has grown so quickly in the last 5-10 years because of:
lower income tax on the top 1% of households
increase tax revenue
economic expansion
increased spending on entitlement programs
9
______ economics emphasizes the inherent instability in the macroeconomy & the need for government intervention.
Micro
Classical
Keynesian
Macro
10
Modern growth theory views technological innovation as ___ but the Solow growth theory views technological change as ___
endogenous; exogenous
exogenous; random
random; exogenous
exogenous; endogenous
11
If capital is increasing, then
the production function will shift downward.
the production function will shift upward.
there is an upward movement along the production function.
there is a downward movement along the production function.
12
Due to _____, government outlays have risen quickly since 2010.
less tax revenue
an aging population
rising inflation
economic expansion
13
An increase in taxes or a decrease in spending during an economic expansion can:
increase the budget deficit but pay off some government debt
increase the budget deficit & increase the size of government debt
work to decrease the budget deficit & increase government debt
work to decrease the budget deficit & pay off some government debt
14
Which of the following best describes a supply shock?
A surprise event that changes the firm’s production costs
A sudden upward movement along the short-run aggregate supply curve
A sudden change in the slope of the aggregate supply curve
An increase in full-employment output
15
According to the idea of diminishing marginal product, which countries will have the highest marginal productivity?
Countries with a large amount of capital.
Countries with a small amount of labor
Countries with a small amount of capital.
Countries with a large amount of labor.
