assessment6 - Assessment 6 (Due: 5:10pm, 31 Oct (Fri))...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Assessment 6 (Due: 5:10pm, 31 Oct (Fri)) Submit via WebCT!!! 1) hich of the following is one of the explanations as to why the aggregate demand curve W slopes downward? A) ncreases in the price level lower the interest rate and decrease consumption spending. I B) ncreases in the price level lower the interest rate and decrease investment spending. I C) ncreases in the U.S. price level relative to the price level in other countries lowers net I exports. D) ncreases in the price level raise real wealth and lowers consumption spending. I 2) uppose the U.S. GDP growth rate is slower relative to other countriesʹ GDP growth rates. S This will A) ove the economy up along a stationary aggregate demand curve. m B) ove the economy down along a stationary aggregate demand curve. m C) hift the aggregate demand curve to the left. s D) hift the aggregate demand curve to the right. s 3) he level of long run aggregate supply is NOT affected by T A) hanges in technology. c B) hanges in the capital stock. c C) hanges in the price level. c D) hanges in the number of workers. c 4) he long run aggregate supply curve, T A) as a negative slope. h B) urve has a steep but positive slope. c C) urve has a flat slope. c D) urve has a vertical slope. c 5) f the economy receives an influx of new workers from immigration, I A) he long run aggregate supply curve will shift to the right. t B) he long run aggregate supply curve will shift to the left. t C) e will move up along the long run aggregate supply curve. w D) e will move down along the long run aggregate supply curve. w 6) uppose a developing country receives more machinery and capital equipment as foreign S entrepreneurs increase the amount of investment in the economy. As a result, A) he long run aggregate supply curve will shift to the right. t B) he long run aggregate supply curve will shift to the left. t C) he economy will move up along the long run aggregate supply curve. t D) he economy will move down along the long run aggregate supply curve. t 1 Assessment 6 (Due: 5:10pm, 31 Oct (Fri)) Submit via WebCT!!! 7) hich of the following is NOT a reason why the wages of workers and the prices of inputs W rise more slowly than the prices of final goods and services? A) ontracts make prices and wages ʺstickyʺ C B) irms are often slow to adjust wages. F C) enu costs make some prices sticky. M D) nions are successful in pushing up wages. U 8) he invention of the cotton gin ushered in the Industrial Revolution and began a long period T of technological innovation. What did this technological change do the short run supply curve? A) t shifted the short run aggregate supply curve to the left. I B) t shifted the short run aggregate supply curve to the right. I C) t moved the economy up along a stationary short run aggregate supply curve. I D) t moved the economy down along a stationary short run aggregate supply curve. I 9) orkers expect inflation to rise from 3% to 5% next year. As a result this should W A) hift the short run aggregate supply curve to the left. s B) hift the short run aggregate supply curve to the right. s C) ove the economy up along a stationary short run aggregate supply curve. m D) ove the economy down along a stationary short run aggregate supply curve. m 10) An increase in investment causes the price level to ________ in the short run and ________ in the long run. A) ncrease; increase further i B) ncrease; decrease i C) ecrease; decrease further d D) ecrease; increase d 2 ...
View Full Document

Ask a homework question - tutors are online