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EC140 Midterm 2 Practice Questions

U b ownwardtotherightreducingthepricelevel d c

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Unformatted text preview: entage of C high-school graduates are illiterate, resulting in a decrease in average labour productivity. This change will A) hift the AS curve to the left. s B) ause a movement to the right along the AS curve. c C) hift the AD curve to the right. s D) hift the AD curve to the left. s E) hift the AS curve to the right. s 6) _______ 7) _______ 8) _______ 9) _______ 10) ______ 3 11) onsider the basic AD/AS model. If major labour unions succeed in C increasing wages across the economy, the AS curve will shift A) pward (to the left), increasing the price level. u B) ownward (to the right), reducing the price level. d C) ownward (to the right) and then return immediately to its d original position. D) pward (to the left) and then return immediately to its original u position. E) one of the above -- there will no effect on the AS curve. n 12) movement along the economyʹs AS curve could be caused by a A change in A) abour productivity. l B) echnology. t C) he price level, caused in turn by an AD shock. t D) he wage rate. t E) he cost of capital. t 13) ver the horizontal range of the economyʹs AS curve (if such a range O exists), a rightward shift of the AD curve will result in A) n increase in real GDP and no change in prices. a B) n increase in both real GDP and prices. a C) decrease in real GDP but no change in prices. a D) decrease in both real GDP and prices. a E) n increase in prices and no change in real GDP. a 11) ______ 12) ______ 13) ______ FIGURE 23-1 14) efer to Figure 23-1. Which of the following events could cause the R upward (leftward) shift of the AS curve? A) n increase in the price of raw materials a B) decrease in the world supply of oil as a result of a major a hurricane C) apid technological advances in mass production r D) mproved quali...
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