sample questions 3 - Sample questions I deleted some that...

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Sample questions:  I deleted some that were from other chapters but the answer key  has all the questions.  The numbers still  correspond though.  So for question 6, look at the answer for 6 on the answer key.   MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question.   
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Why does  the short run  aggregate  supply curve shift to the  right in the  long run,  following a  decrease in  aggregate  demand? 
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6)  _______  A)  Workers and firms  adjust their  expec prices B) 
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Workers and firms  adjust their expectations of wages and prices downward and they accept lower wages and prices.  D) 
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Workers and firms  adjust their expectations of wages and prices upward and they push for higher wages and prices.   
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If  households  in the  economy  decide to  take money  out of  checking  account  deposits and  put this  money into  savings  accounts this will initially 
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7)  _______  A)  decrease M1 and  not ch B) 
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increase M1 and  decrease M2.  D) 
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decrease M1 and  increase M2.   
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Liquidity is  defined as 
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8)  _______  A)  the ease with which a give B) 
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the ease with which a  given asset can be converted to a store of value.  D) 
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the ease with which a  given asset can be converted to a standard of deferred payment.   
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The  ________  the reserve  ratio, the  ________  the money  multiplier. 
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9)  _______  A)  smaller; smaller  B) 
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smaller; larger  D) 
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Christopher Reinemann
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