Quiz5_BLUE_With_Key

Quiz5_BLUE_With_Key - Econ 252 Spring 2011 Quiz 5 BLUE...

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Econ 252 Spring 2011 Quiz 5 BLUE VERSION 1. Which of the following is correct concerning recessions? a. They come at fairly regular and predictable intervals. b. They are associated with comparatively large declines in investment spending. c. They are any period when real GDP growth is positive but less than average. d. They tend to be associated with falling unemployment rates. 2. Most economists use the aggregate demand and aggregate supply model primarily to analyze a. short-run fluctuations in the economy. b. the effects of macroeconomic policy on the prices of individual goods. c. the long-run effects of international trade policies. d. productivity and economic growth. 3. The quantity of money has no real impact on things people really care about like whether or not they have a job. Most economists would agree that this statement is appropriate concerning a. both the short run and the long run. b. the short run, but not the long run. c. the long run, but not the short run. d. neither the long run nor the short run. 4. When the price level changes, which of the following variables will change and thereby cause a change in the aggregate quantity of goods and services demanded? a. the real value of wealth b. the interest rate c. the net exports d. all of the above are correct. 5. As the price level rises a. people are more willing to lend/save, so interest rates rise. b.
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This note was uploaded on 08/02/2011 for the course ECON 252 taught by Professor Robertholand during the Spring '08 term at Purdue.

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Quiz5_BLUE_With_Key - Econ 252 Spring 2011 Quiz 5 BLUE...

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