CHAPTER 10 - C HAPTER 10 1 The concept of aggregate supply...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 10 1 The concept of aggregate supply refers to a: c. schedule of output. 2 The aggregate supply curve is drawn with: c. the price level on the vertical axis and real GDP on the horizontal. 3 Many economists are in favor of increased immigration of adult foreigners who possess high levels of skills and education. Why? d. Economists believe this will increase aggregate supply. 4 The principal way in which an economy self corrects from an inflationary gap is through: b. inflation, which reduces purchasing power. 5 In the figure below, which graph best illustrates an autonomous increase in consumption spending?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
a. 1 6 In the below figure, which graph best illustrates an adverse supply shock accompanied by an increase in government spending? d. 4 7 What does inflation do to the value of the oversimplified multiplier? the value of the multiplier. c. Inflation decreases the value of the multiplier below the value of the oversimplified formula. 8 Aggregate supply grows over time because: a. more workers join the workforce.
Background image of page 2
9 Suppose that we observe a period of rapid inflation occurring when output grows rapidly. This period is associated with: b. faster aggregate demand growth. 10 The case for government stabilization policy is made more compelling if the: a. self-correcting mechanism works very slowly. CHAPTER 11
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 10

CHAPTER 10 - C HAPTER 10 1 The concept of aggregate supply...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online