# Figure the multiplier if this economy is currently at

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HWK assignment #5 M-C and excell questions, chapters 11 and 12

Figure The Multiplier If this economy is currently at Y 1 and the price level from ECON 201 at Minnesota State University, Mankato

26 . Â  According to the wealth effect , when prices decrease , the purchasing power of assets :
A )Â decreases and consumer spending decreases .
B )Â increases and consumer spending decreases .
C )Â decreases and consumer spending increases .
D )Â
Answer: Â D ) Â  increases and consumer spending increases .
27 . Â  The interest rate effect of an aggregate price level change causes :
28 . Â  Figure : The Multiplier If this economy is currently at Y 1 and the price level decreases , then :
29 . Â  ( Figure : The Multiplier ) If this economy is currently at Y 1 and investment spending increases , then :
30 . Â  Changes in aggregate demand can be caused by changes in :
A )Â the stock of physical capital .
C )Â raw materials costs .
D )Â the expenses of complying with government regulations .
Answer: Â A ) Â  the stock of physical capital .
31 . Â  An increase in government spending on health care is likely to shift the :
32 . Â  If the Fed increases the quantity of money in circulation :
33 . Â  A decrease in energy prices will :
34 . Â  A simultaneous rise in productivity and nominal wages would shift the short - run aggregate supply curve to the :
A )Â right if the rise in nominal wages is larger than the rise in productivity .
B )Â right if the cost per unit of output rises .
C )Â left if the cost per unit of output falls .
D )Â
Answer: Â D ) Â  left if the rise in nominal wages is larger than the rise in productivity .
35 . Â  The long - run aggregate supply curve is :
36 . Â  Potential output :
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Chapter 22 / Exercise 9
Exploring Economics
Sexton
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28.(Figure: The Multiplier) If this economy is currently at Y1and the price level decreases, then:A)AD1 will shift to the left, reflecting a multiplieddecrease in the real GDP at every price level.
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##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
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Chapter 22 / Exercise 9
Exploring Economics
Sexton
Expert Verified
B)AD1will shift to the right, reflecting a multiplied increase in the real GDP at every price level.C)an upward movement along the AD1will take place, reflecting an increase in the price level.D)a downward movement along the AD1will takeplace, reflecting a decrease in the price level.
29.(Figure: The Multiplier) If this economy is currently at Y1and investment spending increases, then:
30.Changes in aggregate demand can be caused by changes in:
31.An increase in government spending on health care is likely to shift the:
32.If the Fed increases the quantity of money in circulation:A)interest rates decrease, investment increases, and the aggregate demand curve shifts to the right.B)interest rates increase, investment increases, and the aggregate demand curve shifts to the right.C)interest rates decrease, investment increases, and the aggregate demand curve shifts to the left.D)interest rates increase, investment decreases, and the aggregate demand curve shifts to the left.
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33.A decrease in energy prices will:
34.A simultaneous rise in productivity and nominal wages would shift the short-run aggregate supply curve to the: