Figure 13 3 2 refer to figure 13 3 suppose the

Figure 13-3
2) 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)
A
B)
B
C)
C
D)
D

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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)
_______
A and 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 9-14
Year
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 16-1
7) 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
AS
7)
_______
E) A to E .

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8) Refer to Figure 16-1. Suppose the economy is in a recession and expansionary fiscal policy is
pursued. Using the static AD - AS model in the figure above, this would be depicted as a
movement from
8)
_______
E) B to 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 - AS
model in the figure above.
9)
_______
C E) C to B
10) Refer to Figure 16-1. An increase in taxes would be depicted as a movement from ________,
using the static AD - AS model in the figure above.
10)
______
A) C to D B) B to A C) A to B D) E to B E) B to C
Figure 15-1
11) Refer to Figure 15-1. In the figure, the money demand curve would move from Money demand
to Money demand
2
if
11)
______
1

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