Pre-Test Chap 29 e18 - Pre-Test Chap 29 e18 Student 1 The...

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Pre-Test Chap 29 e18 Student: ___________________________________________________________________________ 1. The aggregate demand curve can be derived from the aggregate expenditures model as indicated by the fact that: A. A decrease in the price level shifts the aggregate expenditures schedule downward and decreases real GDP B. A decrease in the price level shifts the aggregate expenditures schedule upward and decreases real GDP C. An increase in the price level shifts the aggregate expenditures schedule upward and increases real GDP D. An increase in the price level shifts the aggregate expenditures schedule downward and decreases real GDP 2. Why did the increase in oil prices in the late 1990s and early years of the 2000s not produce substantial cost-push inflation? A. Other determinants of aggregate supply offset the negative effects of oil price increases B. Monetary policy was procyclical during the period, thus boosting the economy C. The amount of energy consumed rose as a percentage of GDP D. The economy became more dependent on manufacturing as the basis for economic growth 3. Refer to the above diagram. When output increases from Q 1 and the price level decreases from P 1 , this change will: A. Be caused by a shift in the aggregate supply curve from AS 1 to AS 2 B. Be caused by a shift in the aggregate supply curve from AS 1 to AS 3 C. Result in a movement along the aggregate demand curve from e 1 to e 2 D. Result in a movement along the aggregate demand curve from e 3 to e 1 4. A fall in the price of capital goods will shift the aggregate: A. Demand curve leftward B. Demand curve rightward C. Supply curve rightward D. Supply curve leftward
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5. Refer to the above diagram. When output decreases from Q 1 and the price level increases from P 1 , then this change will: A. Be caused by a shift in the aggregate supply curve from AS 1 to AS 3 B. Be caused by a shift in the aggregate supply curve from AS 2 to AS 1 C. Result in a movement along the aggregate demand curve from e 2 to e 1 D. Result in a movement along the aggregate demand curve from e 1 to e 2 6. Refer to the above graph. As the price level changes, real domestic output remains constant with which line? A. 1
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This note was uploaded on 05/23/2010 for the course ECON 101 taught by Professor Keep during the Spring '10 term at Glendale Community College.

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Pre-Test Chap 29 e18 - Pre-Test Chap 29 e18 Student 1 The...

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