According to the lecture on the cyclical properties of the aggregate supply

According to the lecture on the cyclical properties

This preview shows page 16 - 19 out of 20 pages.

46.According to the lecture on the cyclical properties of the aggregate supply curve, I argued that aggregate demand side policy works better, in terms of influencing output, when the economy is operating at near full employment output relative to when the economy is operating at levels of output well below full employment.A) TrueB) FalseTable for Individual Question FeedbackPoints Earned:1.0/1.0Correct Answer(s):False47.If labor markets become “loose” and wages fall, all else constant, the short run aggregate supply curve will shift to the left.Table for Individual Question FeedbackPoints Earned:1.0/1.0Correct Answer(s):False48.The more 'sticky' nominal wages and other input costs are, the steeper the slope of the aggregate supply curve and therefore, the less effective demand side policies in terms of effecting real output.
Background image
Table for Individual Question FeedbackPoints Earned:1.0/1.0Correct Answer(s):False49.If the US economy is growing faster that the rest of the world, then we would expect a surge in US exports.Table for Individual Question FeedbackPoints Earned:1.0/1.0Correct Answer(s):False50.Suppose that expected inflation is 5% and thus, nominal wages rise, along with all other input prices by 5%. Suppose also, that actual inflation over this period was only 2%. In terms of the behavior of the short-run aggregate supply curve, it would shift up given the expectations of higher inflation and then shift downward to adjust for the actual rate of inflation.A) TrueB) FalseTable for Individual Question FeedbackPoints Earned:1.0/1.0Correct Answer(s):True51.The more sensitive consumption is to real wealth, the steeper the aggregate demand curve.Table for Individual Question FeedbackPoints Earned:1.0/1.0Correct Answer(s):False
Background image
52.During the Great Recession, we argued that the aggregate expenditure curve shifted downward and the short-run aggregate supply curve and the aggregate demand both shifted to the left.Table for Individual Question FeedbackPoints Earned:1.0/1.0Correct Answer(s):True53.Anything that shifts the investment demand curve to the right will also shift the aggregate demand curve to the right.Table for Individual Question FeedbackPoints Earned:1.0/1.0Correct Answer(s):True
Background image
Image of page 19

You've reached the end of your free preview.

Want to read all 20 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes