Exam 2 second half

Exam 2 second half - Valencia Community College East Campus...

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Valencia Community College – East Campus ECO2013: Principles of Macroeconomics Exam #2 Second Half (Chapters 8 – 9) - (7.5%) Last Name, First Name: Mojocoa, Gabriel Date: 04/03/11 Multiple Choice Questions: Circle the single best answer. 1. The short-run aggregate supply curve specifies how shifts in aggregate demand affect: c. inflation and real output in the short run. 2. Keynesian economists believe: b. government can implement policy proposals that can positively impact the economy. 4. A fall in the price level: c. increases the value of money in peoples' pockets so the amount of goods people buy falls. 5. Laissez-faire economists believe: c. most government policies would probably make things worse. Feedback: See the definition of a recessionary gap in the text. 10. Refer to the graph above. In the graph, a recessionary gap exists if the price level is: c. P 1 and the aggregate demand curve is AD 0 . Dr. Tharp
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11. Refer to the graph above. In the graph, if the price level is P 0 and the aggregate demand curve is AD 0, then the economy is in: c. a long-run equilibrium. 12. Refer to the graph above. In the graph, if the price level is P 1 and the aggregate demand curve is AD 0 then the economy is: a. in a recessionary gap. 14. If total income remains the same but profits fall and real wages rise, the aggregate demand curve will most likely: a. shift to the right. 15. Refer to the graph below. The upward sloping relationship in the diagram represents the: b. short-run aggregate supply curve. 17. In the AS/AD model, the repercussions that a change in quantity demanded has on production
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This note was uploaded on 03/27/2012 for the course ECONOMICS 2023 taught by Professor Dyer during the Spring '12 term at Valencia.

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Exam 2 second half - Valencia Community College East Campus...

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