Practice_Qs_Inflation_and_Aggregate_Dema

Practice_Qs_Inflation_and_Aggregate_Dema - Practice Qs...

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Practice Qs 11/05 Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which of the following statements is correct? a. Most economists use the model of aggregate demand and aggregate supply to analyze short-run economic fluctuations. b. Economic fluctuations are essentially unrelated to changes in business conditions. c. Economic fluctuations follow a regular, predictable pattern. d. All of the above are correct. ____ 2. When we say that economic fluctuations are “irregular and unpredictable,” we mean that a. the relationship between output and unemployment is erratic and difficult to characterize. b. when one macroeconomic variable that measures income or spending is falling, other macroeconomic variables that measure income or spending are likely to be rising. c. recessions do not occur at regular intervals. d. All of the above are correct. ____ 3. For a closed economy, the aggregate-demand curve shows the a. quantity of labor and other inputs that firms want to buy at each price level. b. quantity of labor and other inputs that firms want to buy at each inflation rate. c. quantity of goods and services that households, firms, and the government want to buy at each price level. d. quantity of goods and services that households, firms, and customers abroad want to buy at each price level. ____ 4.
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This note was uploaded on 12/28/2010 for the course ECON 004 at Pennsylvania State University, University Park.

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Practice_Qs_Inflation_and_Aggregate_Dema - Practice Qs...

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