If consumers are more optimistic about the future

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Module 3 Test, AP Macro.docx

12 .   If consumers are more optimistic about the future economy , then there is
 a movement down the AD curve as price level decreases .
 AD shifts right and price level would decrease .
 AD shifts right and price level would increase .
 AD shifts left and price level would decrease .
 AD shifts left and the price level would increase .
13 .   If consumers are more optimistic about the future economy , then there is no change in the
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16 .   Assume Angela 's disposable income is $ 800 and her boss gives her a $ 100 raise . Her consumption increased from $ 600 to $ 650 . Which of the following is true ?
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17 .   When economists discuss the " multiplier effect , " they mean that
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18 .   Disposable IncomeConsumption $0
 $ 300 $ 2,000 $ 1,800
19 .   If consumers expect a shortage of consumer goods in the future , what will happen to output and price level ?
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22 .   If Congress cuts personal income taxes and business taxes at the same time , then aggregate demand , short - run aggregate supply , and price level will change in which of the following ways :
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23 .   A change in aggregate demand from AD 2 to AD 4 can be caused by
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12.If consumers are more optimistic about the future economy, thenthere is a movement down the AD curve as price level decreases.AD shifts right and price level would decrease.AD shifts right and price level would increase.AD shifts left and price level would decrease.AD shifts left and the price level would increase.
13.If consumers are more optimistic about the future economy, thenthere is no change in the AD curve as SRAS has decreased.
14.If Congress passes a plan to cut the national debt in half, thenthere is no change in the AD curve as SRAS has decreased.
15.Disposable IncomeConsumer Spending$10,000$7,500$12,000$8,500Given the information in the table above, calculate the MPS for this economy..5.75.8.2.116.Assume Angela's disposable income is $800 and her boss gives her a $100 raise. Her consumption increased from $600 to $650. Which of the following is true?
17.When economists discuss the "multiplier effect," they mean that
when taxes increase, output increases by a greater amount.when government spending increases, output increases by the same amount.when consumption increases, output increases by the same amount.when investment increases by a little, output increases by a greater amount.when investment increases, output increases by the same amount.
18.Disposable IncomeConsumption$0
What is the MPC according to the table above?.5.6
19.If consumers expect a shortage of consumer goods in the future, what will happen to output and price level?
If the economy was operating at P1Y1, thenthe economy is at full employment of resources.employment is less than full employment.inflation is greater than 5%.the economy is above full employment of resources.the economy is in equilibrium.
21.
Cost-push inflation would occur when the economy movesfrom P3Yfto P1Y2.from P2Yfto P1Y1.from P3Yfto P1Y1.from P1Y1to P1Y2.from P1Y1to P2Yf.

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