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Unformatted text preview: macro/hw 7 Chapter 7 1. The labels for the axes of the aggregate demand graph should be: A. Quantity of a product on the vertical axis and the price of a product on the horizontal axis B. Price of a product on the vertical axis and quantity of a product on the horizontal axis C. Real domestic output on the vertical axis and the price level on the horizontal axis D. Real domestic output on the horizontal axis and the price level on the vertical axis 2. A decline in the quantity of real output demanded along the aggregate demand curve is a result of a(n): A. Decrease in the level of income B. Increase in the price level C. Increase in the level of income D. Decrease in the price level 3. An expected rise in the rate of inflation for consumer goods will: A. decrease aggregate demand. B. increase aggregate supply. C. increase aggregate demand. D. decrease aggregate supply. 4. An increase in aggregate demand is most likely to be caused by a decrease in: A. The wealth of consumers B. Consumer confidence C. Interest rates for home mortgages D. The tax rates on household income 5. An increase in the real value of stock prices, which is independent of a change in the price level, would affect aggregate 5....
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This note was uploaded on 08/02/2011 for the course ECON 2305 taught by Professor Wunder during the Spring '08 term at UT Arlington.
- Spring '08