Ec102_01__-_Ch_14_Aggregate_Demand_and_S (1)

Ec102_01__-_Ch_14_Aggregate_Demand_and_S (1) -...

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1. If the Bank of Canada increases the money supply, the aggregate-demand curve shifts to  the: a)  Right b) Left c) None of the above d) All of the above 2. Which of the following would shift the AD curve to the left? a) A boom in the stock market b) A fall in interest rates c) An exchange rate depreciation d) A fall in foreign incomes 3. The natural rate of output is the amount of real GDP produced when: a) There is no unemployment b) The economy is at the natural rate of investment c) The economy is at the natural rate of AD d) When the economy is at the natural rate of unemployment 4. Stagflation occurs when there are: a) Falling prices and falling output b) Falling prices and rising output c) Rising prices and rising output d) Rising prices and falling output 5. According to the model of aggregate supply and aggregate demand, in the long run, an  increase in the money supply should cause: a) Prices to rise and output to rise b) Prices to fall and output to fall c) Prices to rise and output to remain unchanged d) Prices to fall and output to remain unchanged 6. Which of the following events will shift the short-run aggregate supply curve to the right? a) An increase in government spending on military equipment b) An increase in the expected future price level c) A drop in oil prices d) A decrease in the money supply e) None of the above  7. The long run aggregate supply curve will shift if: a) Resources increase
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b) Productivity improves c) The price of raw materials falls d) The price level changes e) a) b) and c) are true but d) is false
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8. If policymakers choose to try to move the economy out of a recession, they should use their  policy tools to:
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Ec102_01__-_Ch_14_Aggregate_Demand_and_S (1) -...

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