Midterm II Study Guide_95 sample questions_chapters 16 17 18 4 5

Midterm II Study Guide_95 sample questions_chapters 16 17 18 4 5

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ECON 2100 Sample Exam Study Questions for Midterm II Chapters 16-18, 4-5 This study guide is a sample of 95 questions that you can use to prepare for Midterm II. I will cover a large number of these questions for our Midterm II review on Saturday the 7th from 1:30pm to 4:00pm in IC 103 Name: __________________________ Date: _____________ 1. The aggregate supply curve shows the relationship between the aggregate price level and: A) aggregate output supplied. B) the aggregate money supply. C) the aggregate unemployment rate. D) aggregate employment. 2. The short-run aggregate supply curve is positively sloped because: A) wages and other costs of production respond immediately to changes in prices. B) profit is lower when prices increase, so output decreases. C) workers are willing to work for lower wages rather than be laid off. D) higher prices lead to higher profit and higher output. Page 1
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Use the following to answer question 3: Figure: Aggregate Supply 3. (Figure: Aggregate Supply) At point F , potential output is: A) less than actual output and unemployment is high. B) less than actual output and unemployment is low. C) greater than actual output and unemployment is high. D) less than actual output and unemployment is low. Page 2
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Use the following to answer question 4: Figure: Aggregate Supply Movements 4. (Figure: Aggregate Supply Movements) Using the accompanying figure we can safely conclude that: A) an increase in the price level is responsible for pushing the SRAS curve to the right. B) a decrease in the price level is responsible for pushing the SRAS curve to the right. C) that there has been an increase in the short-run aggregate supply. D) that there has been a decrease in the short-run aggregate supply. 5. A rise in labor productivity is most likely to result in: A) an increase in aggregate demand. B) a decrease in aggregate demand. C) a decrease in aggregate supply. D) an increase in aggregate supply. 6. A simultaneous rise in productivity and nominal wages would shift the short-run aggregate supply curve to the: A) right if the rise in nominal wages is larger than the rise in productivity. B) right if the cost per unit of output rises. Page 3
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C) left if the cost per unit of output falls. D) left if the rise in nominal wages is larger than the rise in productivity. 7. The short-run aggregate supply curve will increase if: A) commodity prices fall B) the nominal wage rate falls C) productivity increases D) all of the above occur. 8. The short-run aggregate supply curve will decrease if: A) the aggregate price level falls. B) commodity prices rise. C) government tax revenues fall. D) all of the above. 9. The point where the long-run aggregate supply curve intercepts the horizontal axis: A) is the point of macroeconomic equilibrium. B)
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This note was uploaded on 03/16/2010 for the course ECON 2100 taught by Professor Klimenko during the Spring '08 term at Georgia Institute of Technology.

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Midterm II Study Guide_95 sample questions_chapters 16 17 18 4 5

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