This preview shows page 1. Sign up to view the full content.
Unformatted text preview: on aggregate demand.
c. decreases the multiplier, so that changes in government expenditures have a larger effect on aggregate demand.
d. decreases the multiplier, so that changes in government expenditures have a smaller effect on aggregate demand. 4. The quantity of money has no real impact on things people really care about like whether or not they have a job. Most economists would agree that this statement is appropriate concerning a. both the short run and the long run.
b. the short run, but not the long run.
c. the long run, but not the short run.
d. neither the long run nor the short run. 5. Which of the following shifts aggregate demand to the left?
a. The price level rises.
b. The price level falls.
c. The dollar depreciates for some reason other than a change in the price level.
d. Stock prices fall for some reason other than a change in the price level. 1 Name: ________________________ ID: A Figure 34‐4. On the figure, MS represents money s...
View Full Document
This test prep was uploaded on 02/19/2014 for the course ECON 252 taught by Professor Robertholand during the Fall '08 term at Purdue.
- Fall '08