Review_Section_Questions_for_Midterm_2

Review_Section_Questions_for_Midterm_2 - Review Section...

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Review Section Questions for Midterm 2 Part 1 Multiple Choice 1. Which of the following would shift the Aggregate Demand Curve to the left? A. An increase in taxes B. An increase in government spending C. An increase in the price level D. An increase in investment E. Both (A) and (C) 2. The short-run run refers to a period A. less than 1 year B. greater than 1 year but less than 5 years B. in which prices are flexible C. in which prices are inflexible 3. Stagflation in the short run, a period of falling output coupled with rising prices could most easily result from a(n)
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4. An increase in government purchases will: the level of prices in the short-run. leave the level of prices unchanged in the short-run. but leave output unchanged in the long-run. prices but leave output unchanged in the long-run.
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