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Chapter 10 Review - Macro (Part 2) Flashcards | StudBud

Explore/Chapter 10 Review - Macro (Part 2)

Chapter 10 Review - Macro (Part 2)

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Questions 9

Answers

1
Which of the following will reduce aggregate demand?
An increase in the expected rate of inflation
increased consumer and business optimism about the future
Lower incomes in foreign countries
An increase in real wealth
2
An increase in the long run aggregate supply curve shifts...
both LRAS and AD to the left
both LRAS and AD to the right
both LRAS and SRAS to the right
only LRAS to the right
3
Which of the following factors contributed to the 2008 economic recession in the United States?
B
C
D
A
4
Which of these is most likely to accompany an unanticipated reduction in aggregate demand?
An increase in the price level
An increase in the unemployment rate
An increase in Real GDP
A decrease in unemployment
5
If an unanticipated increase in aggregate demand results in an output beyond the economy's...
C
A
B
D
6
If an economy was in long-run equilibrium, an unanticipated increase in AD will tend to cause
reduction in real output that spirals into a long recession
a decrease in the price of resources
an increase in unemployment
temporary and unsustainable high level of output/employment
7
Which is most consistent with the view that the economy has a self-corrective mechanism?
D
A
C
B
8
A major technological advance occurs.
the Aggregate Demand curve would shift to the left
both SRAS and LRAS curves would shift to the right
both SRAS and LRAS curves would shift to the left
the Aggregate Demand curve would shift to the right
9
For an oil-importing country such as the United States...
decrease in both general level of prices and real output
increase in real output; decrease in general level of prices
decrease in real output; increase in general level of prices
increase in both general level of prices and real output