PQ 3 (Ch9)-1

PQ 3 (Ch9)-1 - Name: _ Date: _ 1. Short-run fluctuations in...

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Date: _____________ 1. Short-run fluctuations in output and employment are called: A) sectoral shifts. B) the classical dichotomy. C) business cycles. D) productivity slowdowns. 2. A 5-percent reduction in the money supply will, according to most economists, reduce prices 5 percent: A) in both the short and long runs. B) in neither the short nor long run. C) in the short run but lead to unemployment in the long run. D) in the long run but lead to unemployment in the short run. 3. The aggregate demand curve is the ______ relationship between the quantity of output demanded and the ______. A) positive; money supply B) negative; money supply C) positive; price level D) negative; price level 4. If an aggregate demand curve is drawn with real GDP ( Y ) along the horizontal axis and the price level ( P ) along the vertical axis, using the quantity theory of money as a theory of aggregate demand, this curve slopes ______ to the right and gets ______ as it moves further to the right. A) downward; steeper B) downward; flatter C) upward; steeper D) upward; flatter 5. Along an aggregate demand curve, which of the following are held constant? A) real output and prices
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PQ 3 (Ch9)-1 - Name: _ Date: _ 1. Short-run fluctuations in...

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