{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ECON252 FINAL EXAM 04-30-2013 - BLUE (KEY)

b pointcintheshortrunandbacktothepointainthelongrun c

Info icon This 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: and in the short run and decrease prices of aggregate goods and services in the short run. *** B. increase the consumption demand in the short run and decrease prices of aggregate goods and services in the short run. C. increase the aggregate supply in the long run and decrease the price level in the long run. D. decrease the aggregate supply in the long run and increase the price level in the long run. 27. Which of the following events will increase the real output and the price level in the short run? A. Anopen market purchase of government securities by the Fed. *** B. An open market sale of treasury bonds by the Fed. C. An increase in the discount rates. D. An increase in the reserves ratio. [Use the following figure to answer questions 28–30.] LRAS P SRAS SRAS A C D B AD AD Y 28. Suppose the long run equilibrium is at point A. The Fed increases the discount rate. Assuming no government intervention, the economy will move to A. point C in the short run, and back to point A in the long run. B. point C in the short run, and to point B in the long run. *** C. point D in the short run, and back to point A in the long run. D. point D in the short run, and to point B in the long run. 29. Suppose the long run equilibrium is at point B. There is an adverse shock to the short run aggregate supply. Assuming no government intervention, the economy will move to A. point C in the short run and back to point B in the long run. *** B. point C in the short run and back to the point A in the long run. C. point D in the short run and back to point B in the long run. D. point D in the short run and to point A in the long run. 30. Suppose the long run equilibrium is at point B. There is an adverse shock to the short run aggregate supply. To stabilize the economy’s output and unemployment, the Fed can A. increase the money supply, so the economy moves to po...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern