a rises increases b rises decreases c falls increases d falls decreases Answer

A rises increases b rises decreases c falls increases

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a. rises; increases b. rises; decreases c. falls; increases d. falls; decreases Answer: d If the price level rises but the money wage rate does not, then firms will hire ____ labor. a. more b. the same amount of c. less d. None of the above answers is correct. Answer: a
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If there is a rise in the price level, there is a(n) ____ in the quantity of real GDP supplied and a move-ment ____ along the AS curve. a. decrease; downward b. increase; upward c. increase; downward d. decrease; upward Answer: b Which of the following statements is true? a. An increase in potential GDP increases aggregate supply and shifts the AS curve leftward. b. A decrease in potential GDP decreases aggregate supply and shifts the AS curve leftward. c. An increase in the money wage rate shifts the AS curve rightward. d. A decrease in the price level shifts the AS curve leftward. Answer: b A rise in the price level ____ the buying power of money and ____ the quantity of real GDP demanded. a. does not affect; increases b. lowers; increases c. raises; decreases d. lowers; decreases Answer: d When the U.S. price level rises relative to other nations’ price levels, then a. U.S. firms’ profits increase and the aggregate demand curve shifts rightward. b. U.S. exports increase and the aggregate demand curve shifts rightward. c. U.S. exports decrease, U.S. imports increase, and the aggregate demand curve shifts leftward. d. U.S. exports decrease, U.S. imports increase, and there is a movement upward along the aggregate demand curve. Answer: d Sherri lives in Canada and is considering buying a new sofa. If the price level in Canada falls, other things the same, Canadian manufactured sofas are relatively a. more expensive, so Sherri will likely purchase a foreign manufactured sofa. b. more expensive, so Sherri will likely purchase a Canadian manufactured sofa. c. less expensive, so Sherri will likely purchase a foreign manufactured sofa. d. less expensive, so Sherri will likely purchase a Canadian manufactured sofa. Answer: d
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Aggregate demand a. decreases if expected future income rises. b. increases if the exchange rate rises. c. increases if government purchases decrease. d. increases if the expected inflation rate increases. Answer: d Which of the following decreases aggregate demand and shifts the AD curve leftward? a. a tax cut b. an interest rate hike c. an increase in quantity of money d. an increase in government purchases Answer: b Other things the same, if the foreign exchange rate between the United States and Great Britain goes from 1 dollar exchanges for 0.67 pounds to 1 dollar exchanges for 0.75 pounds, there is a a. leftward shift of the aggregate demand curve. b. rightward shift of the aggregate demand curve. c. movement upward along the aggregate demand curve. d. movement downward along the aggregate demand curve.
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