Ec102_01__-_Ch_14_Aggregate_Demand_and_S -...

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Ec102 (01) – Chapter 14:  Aggregate Demand and Aggregate Supply – S10 1 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)
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This note was uploaded on 11/25/2010 for the course ECON 102 taught by Professor ? during the Spring '08 term at Waterloo.

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Ec102_01__-_Ch_14_Aggregate_Demand_and_S -...

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