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Unit 3
Unit 3
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StudBud Administration
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National Income and Price Determination
Flashcards
30 cards
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Practice quiz
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Host live
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Questions
30
Answers
1
When additional spending generates additional income and eventually a multiple increase
multiplier effect
summation effect
subtraction effect
divider effect
2
The effect of a change in the price level on interest rates is called the ...
net exports effect
wealth effect
Interest rates
debt effect
3
Input prices remain fixed , or sticky, for many reasons except
wage contracts
delays in recognizing unanticipated inflation
menu pricing
productivity
4
The point where the aggregate demand and the aggregate supply curves intersect is called the...
intersection
equilibrium
5
When households receive additional income
marginal propensity to save
average propensity to save
average propensity to consume
marginal propensity to consume
6
The _ is equal to the change in savings divided by the change in disposable income
average propensity to save
marginal propensity to consume
average propensity to consume
marginal propensity to save
7
The short run aggregate supply curve slopes
downwards
no slope
sideways
upwards
8
When the economy is recessionary, the unemployment rate will _ this natural rate
fall below
exceed
9
The _ measures the average amount of the total income households spend or save
average propensity to consume
average propensity to save
marginal propensity to save
marginal propensity to consume
10
The SRAS will _ if firms proud more at any given price level
decrease
increase
11
-MPC/MPS
tax multiplier
sum multiplier
spending multiplier
savings multiplier
12
A change in the following components will shift the aggregate demand curve.
net exports
investment
consumption
government spending
13
Macroeconomics is the best AP class
All the way
Yep
No doubt
True fan
14
The SRAS will shift as a result of changes in _
productivity
input prices
15
The sum of the MPC and MPS is always =
0
1.0
1
.1
16
The SRAS will _ if firms produce less at any given price level
decrease
increase
17
_ inflation is caused by a shift in the aggregate demand curve
Demand-pull
Cost-push
18
At full-employment, the Long Run Aggregate Supply curve is sloped...
No curve
Upwards at an angle
Downwards at an angle
Vertically
19
When experiencing an inflationary gap, the unemployment rate will _ the natural rate.
fall below
exceed
20
MPC is the change in consumption divided by the change in ...
GDP
price level
GPA
disposable income
21
The effect of a change in price level on consumer's purchasing power is ...
interest rate effect
debt effect
wealth effect
net export effect
22
1/(1-MPC) = ? or 1/MPS = ?
tax multiplier
sum multiplier
spending multiplier
saving multiplier
23
The effect of a change in the price level on imports and exports is called ...
debt effect
wealth effect
net exports effect
interest rate effect
24
_ inflation that is caused by a shift in the aggregate supply curve
Demand-pull
Cost-push
25
The aggregate demand curve slopes ...
Straight up
Upwards
Sideways
Downwards
26
The ration of saving to disposable income is the
marginal propensity to consume
average propensity to consume
marginal propensity to save
average propensity to save
27
The multiplier will be _ if you saved more of your additional income
smaller
bigger
both?
no change
28
When the economy experiences high inflation and high unemployment at the same time
Stagflation
Recession
Depression
Hell
29
When the economy's unemployment rate is at its natural rate
No-employment
Actual employment
Full-employment
Half-employment
30
Firms experience losses when input prices remain high and output prices
increase
decrease
