Unit_V_exam.F10.V1

Unit_V_exam.F10.V1 - *CLASS SET* AP MACROECONOMICS Unit V...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
*CLASS SET* AP MACROECONOMICS Unit V Exam 1. According to the classical model, an increase in the money supply causes an increase in which of the following? I. The price level II. Nominal gross domestic product III. Nominal wages A. I only B. II only C. III only D. II and III only E. I, II, and III 2. Which of the following is a possible cause of stagflation (simultaneous high unemployment and high inflation)? A. Increase in labor productivity B. Increase in price for raw materials C. The rapid growth and development of the computer industry D. A decline in labor union membership E. A low growth rate of the money supply 3. Supply-side economists argue that A. a cut in high tax rates results in an increased deficit and thus increases aggregate supply. B. lower tax rates provide positive work incentives and thus shift the aggregate supply curve to the right. C. the aggregate supply of goods can only be increased if the price level falls. D. increased government spending should be used to stimulate the economy. E. the government should regulate the supply of imports. 4. An increase in which of the following is most likely to increase the long-run growth rate of an economy’s real per capita income? A. Population growth B. The proportion of gross domestic product consumed C. The educational attainment of the population D. The supply of money in circulation E. Personal income taxes 5. An increase in which of the following is most likely to cause an improvement in the standard of living over time? A. Size of the population B. Size of the labor force C. Number of banks D. Level of taxation E. Productivity of labor 6. The long-run aggregate supply curve is likely to shift to the right when there is A. an increase in the cost of productive resources B. an increase in productivity C. an increase in the federal budget deficit D. a decrease in the money supply E. a decrease in the labor force 7. Which of the following is true of supply shocks? A. They tend to change both relative prices and the general price level in the economy B. They affect only the general price level C. They can be anticipated and offset with appropriate fiscal policy D. They can be anticipated and offset with appropriate monetary policy E. They make the aggregate supply curve vertical
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
8. An increase in which of the following would cause the long-run supply curve to shift to the right? A. Corporate income tax rates B. Aggregate demand C. Potential output D. The average wage rate E. The price level 9. Increases in real income per capital are made possible by A. improved productivity B. a high labor capital ratio C. large trade surplus D. stable interest rates E. high protective tariffs 10. Which of the following relationships is illustrated by a short-run Phillips curve? A. A decrease in the rate of inflation is accompanied by an increase in the rate of economic growth
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/18/2011 for the course ECON 101 taught by Professor Mcdounough during the Spring '11 term at DeVry Westminster.

Page1 / 5

Unit_V_exam.F10.V1 - *CLASS SET* AP MACROECONOMICS Unit V...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online