Macro_Chapter_10_study_guide_questions_13e

Macro_Chapter_10_study_guide_questions_13e - Macro Chapter...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Macro Chapter 10 study guide questions Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which of the following will reduce aggregate demand? a. an increase in real wealth b. lower real incomes of the country’s foreign trade partners c. increased consumer and business optimism about the future d. an increase in the expected rate of inflation ____ 2. An increase in the long-run aggregate supply curve shifts a. both LRAS and AD to the right. b. both LRAS and SRAS to the right. c. both LRAS and AD to the left. d. only LRAS to the right. ____ 3. During recessions, interest rates tend to fall because a. consumers attempt to borrow money to make up for their falling income. b. business borrowing for investment purposes tends to fall during recessions. c. lower real resource prices create profit opportunities for banks. d. recessions shift the economy's long-run aggregate supply curve to the left. ____ 4. In the short run, equilibrium output in the goods and services market may be either above or below the full- employment level, but in the long run, it a. must be less than full-employment output. b. must be greater than full-employment output. c. will move to full-employment output. d. depends on aggregate demand, not just long-run aggregate supply. ____ 5. Which of the following is most likely to result from an unanticipated increase in short-run aggregate supply due to favorable weather conditions in agricultural areas? a. an increase in the inflation rate b. an increase in the unemployment rate c. a decrease in the price level d. a decrease in the natural rate of unemployment ____ 6. Which of the following is most likely to accompany an unanticipated reduction in aggregate demand? a. an increase in the price level b. a decrease in unemployment c. an increase in real GDP d. an increase in the unemployment rate ____ 7. Which of the following is most likely to accompany an unanticipated increase in short-run aggregate supply? a. an increase in real GDP b. a decrease in real GDP c. an increase in the price level d. an increase in the unemployment rate
Background image of page 1

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

View Full DocumentRight Arrow Icon
____ ____ ____ ____ _ 8. In the will e a. fa to b. ri em c. in d. a For th deman impac Figur _ 9. Refer a. T b. T c. T d. T _ 10. Refer a. T b. T c. T d. A _ 11. Refer previo a. T b. T c. T d. T e aggregate de experience alling real wa oward full em ising interest mployment. nflation that w
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

Macro_Chapter_10_study_guide_questions_13e - Macro Chapter...

This preview shows document pages 1 - 3. Sign up to view the full document.

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