Pre-Test Chapter 16 ed17

Pre-Test Chapter 16 ed17 - Pre-Test Chapter 16 ed17...

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Prof Keep Econ Chap 16 ed 17 Pre Test Chap 16 Page 1 of 7 Pre-Test Chapter 16 ed17 Multiple Choice Questions 1. Suppose total output (real GDP) is $4000 and labor productivity is 8. We can conclude that: A. real GDP per capita must be $500. B. the price-level index must be greater than 100. C. nominal GDP must be $500. D. the number of worker-hours must be 500. 2. Proponents of economic growth make all of the following arguments except : A. Growth is the basic means of improving living standards. B. It is easier to reduce poverty when the economy is growing than when it is not. C. There is a direct relationship between a growing real GDP and rising pollution. D. Growth provides an economic environment favorable to education and self-fulfillment. 3. If the secular trend of labor productivity is 3 percent per year, the number of years that it will take for the standard of living to double will be about: A. 15 years. B. 17 years. C. 20 years. D. 23 years. 4. A rightward shift of a nation's long-run aggregate supply curve is equivalent to: A. a rightward shift of the nation's aggregate demand curve. B. a downward shift of the nation's aggregate expenditures curve. C. a rightward shift of the nation's investment demand curve. D. an outward shift of the nation's production possibilities curve.
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Page 2 of 7 5. Refer to the above diagram. Suppose that in a specific year the long-run and short-run aggregate supply curves shift from AS 1 and AS' 1 to AS 2 and AS' 2 . If the aggregate demand curve also shifts rightward from AD 1 to AD 2 , the rates of economic growth and inflation for the year will be: A. 4 percent each. B. 6 percent and 5 percent, respectively. C. 8 percent and 3 percent, respectively. D. 5 percent and 8 percent, respectively. 6. Refer to the above diagram. Realized economic growth is best represented by a: A. shift in the production possibilities curve from AB to CD . B. move from X on AB to Y on CD . C. shift in the production possibilities curve from CD to AB . D. move from X to Z along AB . 7. Refer to the above diagram. The shifts in long-run and short-run aggregate supply curves from AS 1 and AS' 1 to AS 2 and AS' 2 would most likely result from: A. an increase in the price level. B. a reduction in aggregate demand. C. an improvement in technology. D. deterioration of the infrastructure. 8. The view that the trend rate of U.S. productivity growth accelerated between 1995 and 2005 is closely associated with the: A. idea of the New Economy. B. distinction between short-run and long-run aggregate supply.
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Pre-Test Chapter 16 ed17 - Pre-Test Chapter 16 ed17...

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