Exam_II_A_Key - Part A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 If the inflation rate rises the price level is A growing more

Exam_II_A_Key - Part A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15...

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Part A 1.If the inflation rate rises, the price level is A. growing more slowly B. growing at the same rate C. growing more quickly * 2.Consider these three variables: income, spending, and production. For how many of them is Y used as a symbol? 3.In what way was the Great Recession most unlike other downturns since the Great Depression? 4.Can an economy's real GDP be greater than potential GDP? 5.If the price level rises, which of the following happens with AD? A. you move up the AD curve * B. you move down the AD curve C. the AD curve shifts right D. the AD curve shifts left 6.From July to August, the U.S. added 142,000 jobs. Does this mean that everyone who had a job in July had one thenext month and another 142,000 gained a job? 7.Which of the following has grown the most since 1970? 8.As long as real GDP is growing, the unemployment rate will fall. 9.In general, predictable inflation A. harms workers by cutting real wages B. aids workers by adding to real wages C. has little impact on real wages of workers * 10.The Great Recession was the most severe post-war recession 11.If firms have more capital, ___ shifts ___. 12.Say that an economy is growing at 7% a year. In about how many years will the economy double in size?

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