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1 Marks: 1 The M1 measure of the money supply equals Choose one answer. a. currency plus checking account balances plus traveler's checks. b. currency plus checking account balances. c. paper money plus coins in circulation. d. currency plus checking account balances plus traveler's checks plus savings account balances. Incorrect Marks for this submission: 0/1. Question 2 Marks: 1 All of the following would be considered a positive addition to household wealth except Choose one answer. a. a credit card balance b. the balance in your savings account c. 500 shares of Google stock d. the equity in one's home Correct Marks for this submission: 1/1. Question 3 Marks: 1 Which of the following is not an assumption made by the dynamic model of aggregate demand and aggregate supply? Choose one answer. a. Aggregate demand and potential real GDP decrease continuously. b. The short-run aggregate supply curve shifts to the right except during periods when workers and firms expect higher wages. c. The aggregate demand curve shifts to the right during most periods. d. Potential real GDP increases continuously. Correct Marks for this submission: 1/1. Question 4 Marks: 1 Hyperinflation can be caused by Choose one answer. a. the government selling bonds to the central bank. b. the central bank selling bonds to the public. c. the government selling bonds to the public. d. the central bank selling bonds to the government. Incorrect Marks for this submission: 0/1. Question 5 Marks: 1 The basic aggregate demand and aggregate supply curve model helps explain Choose one answer. a. price fluctuations in an individual market. b. output fluctuations in an individual market. c. long term growth. d. short term fluctuations in real GDP and the price level. Correct Marks for this submission: 1/1. Question 6 Marks: 1 Which of the following models advocate that the quantity of money should be increased at a constant rate? Choose one answer. a. the real business cycle model b. the new Keynesian model c. the new classical model d. the monetarist model Incorrect Marks for this submission: 0/1. Question 7 Marks: 1 Which of the following is considered a negative supply shock? Choose one answer. a. increasing immigration in the economy causes the labor supply to rise b. an increase in unemployment c. an unexpected decrease in the refining capacity for oil d. an improvement in technology Incorrect Marks for this submission: 0/1. Question 8 Marks: 1 A decrease in the discount rate ________ bank reserves and ________ the money supply if banks respond appropriately to the change in the rate. Choose one answer. a. decreases; decreases b. decreases; increases c. increases; decreases d. increases; increases Incorrect Marks for this submission: 0/1.... View Full Document

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