The ad sras and lras curves each show a relationship

This preview shows page 10 - 13 out of 14 pages.

45. The AD , SRAS , and LRAS curves each show a relationship between which two economic variables? (a) The aggregate price level and output (b) The aggregate price level and the interest rate (c) Output and unemployment (d) Output and the interest rate Answer: A Level of difficulty: 1 Section: 8.4 46. When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, which of the following curves slopes downward? 47. When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, which of the following curves is vertical? 48. When plotted with the aggregate price level on the vertical axis and output on the horizontal axis, the long-run aggregate supply curve
Image of page 10

Subscribe to view the full document.

128 Abel/Bernanke • Macroeconomics, Fifth Edition 49. A decrease in government spending on the park system would cause (a) the aggregate demand curve to shift to the right. (b) the aggregate demand curve to shift to the left. (c) a movement down and to the right along the aggregate demand curve. (d) a movement up and to the left along the aggregate demand curve. Answer: B Level of difficulty: 1 Section: 8.4 50. A decline in the stock market, which makes consumers poorer, would cause 51. In the short run, an increase in export sales would cause output to _____ and the price level to _____. 52. In the long run, an increase in consumer spending would cause output to _____ and the price level to _____. 53. In the long run, an increase in government purchases of military equipment would cause output to _____ and the aggregate price level to _____. (a) stay constant; fall (b) fall; fall (c) fall; stay constant (d) stay constant; rise Answer: D Level of difficulty: 2 Section: 8.4
Image of page 11
Chapter 8 Business Cycles 129
Image of page 12

Subscribe to view the full document.

Image of page 13
You've reached the end of this preview.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern