Macroeconomics Quiz CH 7 Part 2 M

Macroeconomics Quiz CH 7 Part 2 M - Chapter 7 Part II 1....

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1. Suppose the price of an important natural resource such as oil falls. What will be the effect on the short-run aggregate supply curve? A) The aggregate supply curve will shift to the left. B) There will be movement to the left, along the aggregate supply curve. C) There will be movement to the right, along the aggregate supply curve. D) The aggregate supply curve will shift to the right. Correct Answer(s): D 2. To eliminate an inflationary gap, policy-makers may pursue A) an expansionary policy that reduces the price level. B) a contractionary policy that decreases aggregate demand. C) a non-intervention policy that leaves aggregate demand unaffected and increases aggregate supply. D) an intervention policy that increases aggregate supply and decreases aggregate demand. Correct Answer(s): B 3. The short-run aggregate supply shows the amount of real GDP that will be A) purchased at various national income levels. B) purchased at various price levels.
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Macroeconomics Quiz CH 7 Part 2 M - Chapter 7 Part II 1....

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