9.1.Ch.9_Study_Guide-_AD_and_AS

9.1.Ch.9_Study_Guide-_AD_and_AS - Ch. 9 Study Guide – AD...

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Unformatted text preview: Ch. 9 Study Guide – AD AND AS 2007, BK Publishing, Inc. 243 Q 1) The goal(s)s of any national economy is (is are) to have: a) optimum output. b) low rates of employment. c) steady economic growth. d) a and c. Ch. 9 Study Guide – AD AND AS 2007, BK Publishing, Inc. 244 Q 2) In determining national income of its economy.we assume that: a) inflation is indirectly related with GDP. b) employment is directly related with GDP. c) inflation is not related to employment. Ch. 9 Study Guide – AD AND AS 2007, BK Publishing, Inc. 245 Q 3) The factor not that are considered constant for the AD is: a) expectations of consumers (households) and firms. b) interest rates. c) price of substitutes. d) tax rate. Ch. 9 Study Guide – AD AND AS 2007, BK Publishing, Inc. 246 Q 4) The factors that are considered constant for the AD are: a) government spending. b) money supply. c) net exports. d) all of them. Ch. 9 Study Guide – AD AND AS 2007, BK Publishing, Inc. 247 Q 5) On the aggregate demand curve we put a) inflation on the y axis. b) real GDP on the x axis. c) unemployment on y axis. d) None of them are correct. Ch. 9 Study Guide – AD AND AS 2007, BK Publishing, Inc. 248 Q 6) Aggregate demand is downward sloping because of: a) Foreign good substitution; b) a and c. c) Interest rate effect. d) real-income effect Ch. 9 Study Guide – AD AND AS 2007, BK Publishing, Inc. 249 Q 7) Increase in relative price level in the U.S. as compared to Brazil, will lead to a) increase in real total output in the U.S. b) decrease in employment in U.S. c) a and b. Ch. 9 Study Guide – AD AND AS 2007, BK Publishing, Inc. 250 Q 8) Wealth-effect is also called a) real-balance effect. b) foreign substitution effect. c) real income effect. d) all of them. Ch. 9 Study Guide – AD AND AS 2007, BK Publishing, Inc. 251 Q 9) Decrease in the monetary wealth of an person individual leads to: a) increase in the number of goods purchased. b)d decrease ins which lowers real total output . c) decrease in unemployment. d) a and c. Ch. 9 Study Guide – AD AND AS 2007, BK Publishing, Inc. 252 Q 10) Decrease in price level will lead to: a) increase in monetary wealth. b) increase in goods purchased. c) increase in employment. d) all of them. Ch. 9 Study Guide – AD AND AS 2007, BK Publishing, Inc. 253 Q 11) Interest rate effect shows that Iprice level and real total output are: a) directly related. b) indirectly related . c) not related to each other. Ch. 9 Study Guide – AD AND AS 2007, BK Publishing, Inc. 254 Q 12) If John takes a loan of $500 and the interest rate is 7.5%Interest rates are per year, then his interest payments would be ….. per year: a) $7.5 ....
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This note was uploaded on 03/22/2012 for the course ECON 1 taught by Professor Abdel-rahman during the Spring '08 term at Santa Monica.

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9.1.Ch.9_Study_Guide-_AD_and_AS - Ch. 9 Study Guide – AD...

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