Midterm_test_Kyle

Midterm_test_Kyle - Before the break test Kyle sections...

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Before the break test Kyle sections Econ 002 March 12 _____ If the United States were to pass legislation that would make it easier for people to emigrate to the United States, this would cause (a) the short-run aggregate supply curve to shift to the right (b) the short-run aggregate supply curve to shift to the left (c) the short-run aggregate supply curve to become flatter (d) the short-run aggregate supply curve to become nearly vertical at all levels of output _____An increase in aggregate demand when the economy is operating at full capacity is likely to result in (a) an increase in output but no increase in the overall price level (b) an increase in both output and the overall price level (c) no increase in either output or the overall price level (d) an increase in the overall price level but no increase in output _____ According to the classical economists, those who are not working (a) are unable to find a job at the current wage rate (b) are too productive to be hired at the current wage (c) have chosen not to work at the market wage (d) have given up looking for a job, but would accept a job at the current wage if one were offered to them. _____ If inflationary expectations increase, the Phillips curve will (a) shift to the right (b) shift to the left (c) become vertical (d) become upward sloping _____Potential GDP is the level of aggregate output (a) that can be produced at a zero unemployment rate (b) that can be sustained in the long run, if the capacity utilization is below 100% (c) that can be produced if structural unemployment is zero (d) that can be sustained in the long run without inflation _____Automatic de-stabilizing policies would tend to (a) negate inflation and stimulate expansion (b) reinforce inflationary pressures and deepen recessionary conditions (c) decrease the nation’s imports (d) reduce frictional unemployment LSC, Spring 2008 page 1 of 5
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Before the break test Kyle sections Econ 002 March 12 Choose the best answer or complete the sentence. _____The Federal deficit tends to rise when (a) GDP decreases (b) GDP increases (c) GDP remains unchanged (d) exports increase _____For spending cuts of a certain amount to reduce the deficit by the same amount the government (a) spending multiplier must be 2 (b) tax multiplier must be 0 (c) spending multiplier must be 0 (d) tax multiplier must be 2
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