Chapter_7

Chapter_7 - Macroeconomics Test Yourself Chapter7 1. In a....

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Macroeconomics Test Yourself Chapter7 1. In the aggregate supply relation, the current price level depends upon a. the expected price level. b. monetary policy. c. fiscal policy. d. consumer confidence. e. all of the above. 2. When the price level is equal to the expected price level, we know that a. everyone who wants a job is working. b. the interest rate is zero. c. output is equal to its natural level. d. both the price level and the expected price level are equal to one. e. taxes are equal to government spending. 3. When output is less than the natural level, a. the unemployment rate is greater than the natural unemployment rate. b. the price level is greater than the expected price level. c. the price level will be higher next period than this period. d. all of the above. e. none of the above. 4. In the aggregate demand relation, a rise in the price level causes output to drop through its impact on a. government spending. b. the real money supply. c. consumer confidence. d. firms' markup over labor costs. e. the natural unemployment rate. 5. Which of the following would shift the aggregate demand curve leftward? a. a decrease in the money supply. b. an increase in consumer confidence. c. a rise in the price level. d. a decrease in taxes. e. all of the above. 6. In our model, the short-run impact of a decrease in the money supply would include a. a decrease in output. b. an increase in the interest rate. c. a decrease in the price level. d. none of the above. e. all of the above. 7. An increase in the money supply will, in the short run, cause a. the LM curve to shift downward. b. the AD curve to shift leftward. c. the IS curve to shift rightward. d. the wage setting curve to shift upward. e. the wage setting curve to shift downward.
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Page 2 8. Which of the following policies will move the economy upward along the aggregate supply curve? a. an increase in the money supply.
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This note was uploaded on 08/03/2008 for the course BUAD 350 taught by Professor Safarzadeh during the Summer '07 term at USC.

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Chapter_7 - Macroeconomics Test Yourself Chapter7 1. In a....

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