Figure 13 3 2 Refer to Figure 13 3 Suppose the economy is at point A If the

Figure 13 3 2 refer to figure 13 3 suppose the

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Figure 13-32) Refer to Figure 13-3. Suppose the economy is at point A. If the economy experiences a supply shock, where will the eventual short-run equilibrium be? 2) _______ A) AB) B C) CD) D
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ECON104 Final Exam TIERNEY © 2014 3 3) Refer to Figure 13-3. Suppose the economy is at point A. If investment spending increases in the economy, where will the eventual long-run equilibrium be? 3) _______ D) D 4) Refer to Figure 13-3. Which of the points in the above graph are possible long-run equilibria? 4) _______ Aand B 5) Refer to Figure 13-3. Suppose the economy is at point C. If government spending decreases in the economy, where will the eventual long-run equilibrium be? 5) _______ D) D Table 9-14Year Nominal Average Hourly Earnings CPI (1982-1984 = 100) 1965 $2.65 2010 22.59 219 The table above reports the nominal average hourly earnings in private industry and the consumer price index for 1965 and 2010. 6) Refer to Table 9-14. The real average hourly earnings for 1965 in 2010 dollars equal 32 6) _______ A) $3.87. B) $5.80. C) $12.10. D) $18.14. Figure 16-17) Refer to Figure 16-1. Suppose the economy is in short-run equilibrium above potential GDP and automatic stabilizers move the economy back to long-run equilibrium. Using the static AD-model in the figure above, this would be depicted as a movement from AS7) _______ E) A to E .
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ECON104 Final Exam TIERNEY © 2014 4 8) Refer to Figure 16-1. Suppose the economy is in a recession and expansionary fiscal policy is pursued. Using the static AD-ASmodel in the figure above, this would be depicted as a movement from 8) _______ E) Bto C. 9) Refer to Figure 16-1. Suppose the economy is in short-run equilibrium above potential GDP and wages and prices are rising. If contractionary policy is used to move the economy back to long run equilibrium, this would be depicted as a movement from ________ using the static AD-ASmodel in the figure above. 9) _______ C E) Cto B 10) Refer to Figure 16-1. An increase in taxes would be depicted as a movement from ________, using the static AD-ASmodel in the figure above. 10) ______ A) Cto D B) Bto A C) Ato B D) Eto B E) Bto C Figure 15-111) Refer to Figure 15-1. In the figure, the money demand curve would move from Money demandto Money demand2if 11) ______ 1
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ECON104 Final Exam TIERNEY © 2014 5
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