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final exam review economics - 1 StudentResponse Value...

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1.   The aggregate demand curve is:    Student Response Value Correct Answer A.  vertical if full employment  exists.    B.  horizontal when there is  considerable  unemployment in the  economy.    C.  downsloping because  of the interest-rate,  real-balances, and  foreign purchases  effects. 100%     D.  downsloping because  production costs  decrease as real output  rises.    Score: 1/1  Comments:   2.
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  The aggregate supply curve (short-run) slopes upward and to the right because:    Student Response Value Correct Answer A.  changes in wages and other resource prices  completely offset changes in the price level.    B. the price level is flexible upward but inflexible  downward. 0%     C.  supply creates its own demand.    D.  wages and other resource prices adjust only  slowly to changes in the price level.      3.   Answer the next question(s) on the basis of the following information:  An economy is employing 2 units of capital, 5 units of raw materials, and 8  units of labor to produce its total output of 640 units. Each unit of capital costs  $10, each unit of raw materials, $4, and each unit of labor, $3.   Refer to the above information. If the per unit price of raw materials rises from  $4 to $8 and all else remains constant, the aggregate:    Student Response Value Correct Answer Feedback A.  supply curve would shift to the left.      B.  supply curve would shift to the right.      C.  demand curve would shift to the left.      D. demand curve would shift to the right. 0%       Score: 0/1  Comments:
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4.         Refer to the above diagram. Other things equal, a shift of the aggregate supply curve  from AS 0  to AS 1  might be caused by a(n):    Student Response Value Correct  Answer Feedback A.  increase in government regulation.      B. increase in aggregate demand. 0%       C.  increase in productivity.      D.  decline in nominal wages.      Score: 0/1  Comments:   5.
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  Answer the next question(s) on the basis of the following table for a particular  country in which  C  is consumption expenditures,  I g  is gross investment  expenditures,  G  is government expenditures,  X  is exports, and  M  is imports.  All figures are in billions of dollars.  Each question is independent of the other questions.       Refer to the above table. The real-balances effect of changes in the price level is:    Student Response Value Correct Answer Feedback A.  shown by columns (1) and (2) of the table.      B.  shown by columns (1) and (5) of the table.      C. shown by columns (1) and (4) of the table. 0%       D.  not shown by the data in the table.        6.
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