Unformatted text preview: >-—I 13. fthe LRASC urve is continuously shifting to the right, it is probably safe to dime fhafI there is. Technological progress An increase in l'he nopulatiori
All of the above 72;; a) c c t
@ b) An increase in the capital stock c) An increase in labour productivity 14. Suppose that a government report indicates that recent high—school graduates
have better computing skills than did graduates in the past resulting in an
increase in labour productivity. This will shift the 7,_ curve to the a) AD curvé'i'lért '
’o) AD curve, right in the price level will .- l Along an aggregate demand curve, an increas
th Interest r te,’ .l investment the transactions demand for money, l _ |
expenditures and A“ the quantity of goodsa and services demanded
Reduce, raise, increase, increase
Increase, lower, increase, increase [133% @ Increase. raise. lower, decrease
Reduce, lower, increase, increase I:
E'l 16. In a small open economy, a monetary injection by the Bank of Canada causes
the dollar to depreciate in value. The effect on aggregate demand is ____ thanin a closed economy: ﬂ
Q I": _ _ _ a) Smaller Greater
" ._._ b) - The-same None of the above
Which of the following factors does not shift the long—run aggregate supply curve?
a) A change in the population c,_ A change in technology
'0) A change in the capital stock .ﬂ) A change in the price level Suppose that there is an adverse supply shock such as an increase in firms’
costs. This causes the short- run aggregate supply curve to shift left. Output falls and price rises. This is known as a period Q a) Inflation
b) Deflation Stagflation
Falling relative prices Assume the Canadian dollar has gained value compared with the British pound. l' This is an indication that.
a) Canada has pursued a mum: iI'Iflationary policy than Britain Britain has pursued an inflationary policy similar to Canada
Britain has pursued a more inflationary policy than Canada Neither Britain nor Canada has pursued an inflationary policy 20. A Canadian company buys natural gas from a Russian producer. The Canadian
company pays for the natural gas with chemical fertilizer. As a result of this
transaction, Canadian net exports_ and Canadian net foreign investment a) Increase; increases _.
b) Decrease, decreases _I' ' ECl-Oizwl): Final Exam Fall 2006 A. Trrmarchi Are unchanged, increases
Are unchanged, is unchanged Page 4 of 17— ...
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- Winter '10