ECON252_Practice_Exam_3A_-_Chapters_15-16_with_KEY_

D fallsshiftingaggregatesupplyleft figure343 16

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Unformatted text preview: e of the above is correct. 3 Name: ________________________ ID: A 14. If the MPC is 2/3 then the multiplier is a. 3/2, so a $100 increase in government spending increases aggregate demand by $150. b. 3/2, so a $100 increase in government spending increases aggregate supply by $150. c. 3, so a $100 increase in government spending increases aggregate demand by $300. d. 3, so a $100 increase in government spending increases aggregate supply by $300. 15. An economic contraction caused by a shift in aggregate demand remedies itself over time as the expected price level a. rises, shifting aggregate demand right. b. rises, shifting aggregate demand left. c. falls, shifting aggregate supply right. d. falls, shifting aggregate supply left. Figure 34‐3. 16. Refer to Figure 34‐3. For an economy such as the United States, what component of the demand for goods and services is most responsible for the decr...
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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 University-West Lafayette.

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