HW8 - Homework 8-Intermediate Macroeconomics-Due on...

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Homework 8-Intermediate Macroeconomics--Due on 11/16/2010 I Multiple choices (30 points) 1. For a fixed money supply, the aggregate demand curve slopes downward because at a lower price level real money balances are ______, generating a ______ quantity of output demanded. A) higher; greater B) higher; smaller C) lower; greater D) lower; smaller 2. A short-run aggregate supply curve shows fixed ______, and a long- run aggregate supply curve shows fixed ______. A) output; output B) prices; prices C) prices; output D) output; prices 3. Stabilization policy: A) aims at keeping output and employment at their natural rates. B) always succeeds in keeping output and employment at their natural rates. C) is generally ineffective. D) does more harm than good. 4. Which of the following is an example of a demand shock? A) a large oil-price increase B) the introduction and greater availability of credit cards C) a drought that destroys agricultural crops D) unions obtaining a substantial wage increase 5. Stagflation occurs when prices ______ and output ______.
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This note was uploaded on 02/02/2011 for the course ECO 305 taught by Professor Kisina during the Fall '08 term at SUNY Stony Brook.

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HW8 - Homework 8-Intermediate Macroeconomics-Due on...

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