(2)practice

A xcessdemandriseright e b xcesssupplyriseright e c

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: utput. e C) ifference between actual and potential output. d D) hanging slope of the AS curve. c E) ifferent speeds at which the economy adjusts to positive and d negative output gaps. 19) ______ 20) ______ 21) hich of the following statements describes a possible self-fulfilling W prophesy in the short run involving householdsʹ behaviour? A) belief of an impending recession leads households to decrease A their desired saving. B) belief of an impending recession leads households to increase A their desired saving. C) belief of an impending recession leads households to increase A their registration in post-secondary institutions to reduce their risk of being unemployed. D) belief of an impending recession leads households to increase A their desired consumption. E) one of the above. n 22) low factor-utilization rate describes ________ in factor markets, A which causes factor prices to ________ and shifts the aggregate supply curve to the ________. A) xcess demand; rise; right e B) xcess supply; rise; right e C) xcess supply; fall; right e D) xcess demand; fall; right e E) xcess supply; fall; left e 23) f per capita GDP in a richer country grows at a faster annual rate than I in a poorer country, A) he gap between their standards of living will widen over time. t B) hether the gap in living standards widens or closes over time w depends on the absolute size of the relative growth rates. C) he gap between their standards of living will close over time as t long as the rate of population growth is higher in the poorer country. D) he gap between their standards of living will close over time. t E) he difference in their living standards will not change over time. t 24) onsider the aggregate production function Y = F(K, L). If the inputs K C and L are increased by 5 percent each, and the production function displays constant returns to scale, then total output will increase by ________ percent. A) ess than 5 l B) ore than 5 m C) 5 D) 0 E) ot enough information to determine. N 25) f the Consumer Price Index changes from 120 in year one to 150 in year I two, the rate of inflation in the intervening year is A) 0 percent. 1 B) 2.5 percent. 1 C) 0 percent. 2 D) 5 percent. 2 E) 0 percent. 3 26) uring the 1970s, Canada experienced an unusual pattern of interest D 21) ______ 22) _____...
View Full Document

This note was uploaded on 04/01/2013 for the course ECON 411 taught by Professor Chris during the Spring '13 term at Windsor.

Ask a homework question - tutors are online