Quiz 3 - budget deficits will cause the equilibrium price...

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1. If the economy were initially equilibrium and the aggregate in equilibrium and the aggregate demand curve shifted to the left, a. employment would fall b. the price level would rise c. the aggregate supply curve would shift rightward d. the aggregate supply curve would shift leftward e. the economy would experience an expansion period Answer : A
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2. In terms of the aggregate demand nd supply framework and supply framework, the Great Depression can be viewed terms of a a. rightward shift of the aggregate demand curve in terms of a b. rightward shift of the aggregate supply curve c. movement downward along the aggregate demand curve d .a leftward shift of the aggregate demand curve leftward shift of the aggregate supply curve e. a leftward shift of the aggregate supply curve Answer : D
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3. According to Keynes, the policy of incurring
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Unformatted text preview: budget deficits will cause the equilibrium price level to __________ and equilibrium output to __________. a. rise; rise se; fall b. rise; fall c. fall; rise nswer d. fall; fall main the same; remain the same Answer : A e. remain the same; remain the same simultaneous reduction in output and the price 4. Stagflation refers to a. a simultaneous reduction in output and the price level b. a simultaneous increase in output and the price level c. a decline in the price level accompanied by increases in real output and employment d. an increase in the price level accompanied by ecreases in real output and employment decreases in real output and employment e. a simultaneous increase in both the trade deficit d the budget deficit and the budget deficit Answer : D...
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This note was uploaded on 08/30/2011 for the course ART 3514 taught by Professor Dhbannan during the Summer '03 term at Virginia Tech.

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Quiz 3 - budget deficits will cause the equilibrium price...

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