Chisum 8 Econ - Macro Unit 2 & 3

Expansionary fiscal policy will have which of the following effects?

Which of the following indicates a recession in the short run?

A shift in aggregate demand will change potential output.

An increase in interest rates would most likely result in:

If government currently has neither a deficit nor surplus, which of the following would result from expansionary policy?

Based on the attached image, what gap is represented by the space between Q2 and Q1?

Macro Unit 1 Review: An increase in CPI from 100 to 150 indicates:

Contractionary fiscal policy will most likely have which of the following effects on inflation and unemployment?

Which of the following is an example of a "transfer payment"?

A change in which of the following would shift SRAS?

Which of the following increases short-run aggregate supply?

When the economy is experiencing inflation, workers demand hire wages, shifting SRAS to the left.

An increase in education will most likely lead to:

Which of the following would decrease aggregate demand?

Assume we start out in long run equilibrium. An increase in aggregate demand would lead to:

Wages and prices fully adjust for inflation over the long run.

Which of the following would be a tool of contractionary fiscal policy?

Macro Unit 1 Review: GDP Deflator and CPI are both measurements of:

Which of the following best explains why short run aggregate supply slopes up?

Assume that in the short run, our actual output is higher than potential output. Over the long run:

MICRO REVIEW: As a consumer purchases more of a good, their marginal utility tends to:

Aggregate demand slopes downwards due to which phenomenon?

Assume initial national debt = $100 B, tax revenue = $30 B, spending = $50 B. Which of the following will result?

MICRO REVIEW: A straight line downward sloping PPC indicates which of the following?

MICRO REVIEW: Which of the following is most likely a fixed cost?

Macro Unit 1 Review: During the expansion phase of the business cycle, the economy typically experiences:

The LRAS is vertical because in the long run wages and prices are sticky