Quiz - Chapters 27 and 28

Quiz - Chapters 27 and 28 - Points Awarded 120.00 Points...

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Points Awarded 120.00 Points Missed 0.00 Percentage 100% 1. Which of the following shift the LAS curve rightward? A) a increase in the education level of the labor force B) a decrease in the labor force C) a decrease in the money wage D) an increase in the price level Points Earned: 1.0/1.0 Correct Answer(s): A 2. Suppose that the money wage in the economy increases by 8 percent. As a result the A) long-run aggregate supply will decrease. B) long-run and the short-run aggregate supply both decrease. C) short-run aggregate supply will decrease. D) long-run aggregate supply will increase and the short-run aggregate supply will decrease. Points Earned: 1.0/1.0 Correct Answer(s): C
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3. In the above figure, the short-run aggregate supply curve is SAS1. If the money wage rate increases, there is A) an upward movement along SAS1. B) a downward movement along SAS1. C) a shift to SAS0. D) a shift to SAS2. Points Earned: 1.0/1.0 Correct Answer(s): C 4. The AD curve shows the sum of A) the price level, employment, and real GDP. B) consumption expenditure, investment, and real GDP. C) consumption expenditure, investment, government expenditures on goods and services, and net exports. D) consumption expenditure, investment, the price level, and real GDP. Points Earned: 1.0/1.0 Correct Answer(s): C
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5. A reason the aggregate demand curve slopes downward when the price level rises is because A) real wealth increases. B) real wealth decreases. C) interest rates fall. D) None of the above answers is correct. Points Earned: 1.0/1.0 Correct Answer(s): B 6. One reason that the aggregate demand curve has a negative slope is that when the domestic price level rises, A) firms produce more goods and services. B) firms produce fewer goods and services. C) people substitute toward more imported goods and services. D) peoples' wealth increases. Points Earned: 1.0/1.0 Correct Answer(s): C 7. An increase in aggregate demand is shown by a A) rightward shift the AD curve.
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C) movement downward along the AD curve. D) leftward shift the AD curve. Points Earned: 1.0/1.0 Correct Answer(s): A 8. Which of the following statements is incorrect? A) Fiscal policy is the attempt to influence the economy using taxes, transfer payments, and government expenditures. B) Government expenditures affect aggregate demand directly because government expenditures are a component of aggregate demand. C) Taxes and transfer payments affect aggregate demand by changing disposable income. D) An increase in disposable income leads to a decrease in aggregate demand. Points Earned: 1.0/1.0 Correct Answer(s): D 9. The U.S. exchange rate rises. As a result, there is a A) movement along the U.S. aggregate demand curve but the curve does not shift. B) rightward shift in the U.S. aggregate demand curve.
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Quiz - Chapters 27 and 28 - Points Awarded 120.00 Points...

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