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Quiz - Chapter 29 (Practice 1)

# Quiz - Chapter 29 (Practice 1) - Maximum number of choices...

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Maximum number of choices allowed is {0}. Points Awarded 76.67 Points Missed 23.33 Percentage 76.7% 1. According to which theory of the business cycle do changes in the quantity of money never play a role in helping to explaining fluctuations in real variables? A) Keynesian B) monetarist C) rational expectations D) real business cycle Points Earned: 3.3/3.3 Correct Answer(s): D 2. A Phillips curve measures the relationship between

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3. When aggregate demand persistently grows at a rate that exceeds the growth rate of potential GDP, the economy will experience ________. Points Earned: 3.3/3.3 Correct Answer(s): D 4. In the above figure, the economy is at point A. An increase in oil prices that sets off a costpush inflation will initially move the economy from point A to point Points Earned: 3.3/3.3 Correct Answer(s): D
5. The long-run Phillips curve shows the relationship between the inflation rate and the unemployment rate when the A) real interest rate equals the nominal interest rate. B) real interest rate is zero. C) actual inflation rate equals the expected inflation rate. D) inflation rate is zero. Points Earned: 3.3/3.3 Correct Answer(s): C 6. In real business cycle theory, all of the following events can be sources of fluctuations in productivity EXCEPT ________. Points Earned: 3.3/3.3 Correct Answer(s): C

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7. Demand-pull inflation results from continually increasing the quantity of money, which leads to a continually Points Earned: 3.3/3.3 Correct Answer(s): D 8. In monetarist business cycle theory, the factor leading to a business cycle is changes in Points Earned: 3.3/3.3 Correct Answer(s): C 9. The mid-1970s in the United States were characterized by A) increases in aggregate demand and decreases in short-run aggregate supply. B) decreases in both aggregate demand and long-run aggregate supply.
C) decreases in both aggregate demand and short-run aggregate supply. D) decreases in long-run aggregate supply and increases in short-run aggregate supply. Points Earned: 3.3/3.3 Correct Answer(s): A

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