Quiz - Chapter 29 (Practice 1)

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

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
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 A) the unemployment rate and inflation. B) the level of money wage rates and GDP. C) unemployment and GDP. D) inflation and GDP.
Background image of page 1

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

View Full DocumentRight Arrow Icon
Points Earned: 3.3/3.3 Correct Answer(s): A 3. When aggregate demand persistently grows at a rate that exceeds the growth rate of potential GDP, the economy will experience ________. A) a slowdown in the economic growth rate B) rising wage rates C) persistent full-employment D) persistent inflation 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 A) A, that is, the economy does not change. B) B. C) C. D) D. Points Earned: 3.3/3.3 Correct Answer(s): D
Background image of page 2
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 ________. A) the pace of technological change B) climate fluctuations C) the growth rate of money D) natural disasters Points Earned: 3.3/3.3 Correct Answer(s): C
Background image of page 3

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

View Full DocumentRight Arrow Icon
7. Demand-pull inflation results from continually increasing the quantity of money, which leads to a continually A) decreasing long-run aggregate supply. B) increasing aggregate supply. C) decreasing aggregate demand. D) increasing aggregate demand. 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 A) consumer spending. B) investment spending. C) the growth rate of the quantity of money. D) net exports. 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.
Background image of page 4
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 10. A rise in the price level because of an increase in the price of oil A) definitely triggers a cost-push inflation. B) definitely triggers a demand-pull inflation.
Background image of page 5

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

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 71

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

This preview shows document pages 1 - 6. Sign up to view the full document.

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