Question 1

According to the foreign trade effect,if the U.S.price level rises then U.S.exports are more expensive for foreigners to buy so the level of real GDP decreases.

Accepted Answer

A) True 
 B)False

Question 2

The Classical approach dominated economic policy during:

Accepted Answer

A)   The 1980s.
B)   The Vietnam War.
C)   World War II.
D)   The period before the Great Depression.E) B) and D)
F) A) and C)

Question 3

Table 11.1-Aggregate supply and demand 
-In Table 11.1,at what price level does macro equilibrium occur?

Accepted Answer

A)   100
B)   110
C)   120
D)   130E) A) and B)
F) A) and C)

Question 4

Which of the following suggests that lower average prices stimulate more borrowing?

Accepted Answer

A)   The cost effect
B)   The interest rate effect
C)   The real balances effect
D)   The profit effectE) A) and B)
F) A) and C)

Question 5

Keynesian policy levers include:

Accepted Answer

A)   Deregulation.
B)   Fiscal policy.
C)   Supply-side policy.
D)   Laissez-faire policy.E) B) and D)
F) A) and B)

Question 6

According to the text,which of the following is a determinant of macroeconomic performance?

Accepted Answer

A)   Prices
B)   Policy levers
C)   The unemployment rate
D)   The international value of the dollarE) B) and C)
F) A) and C)

Question 7

The cornerstone of Classical theory is constant wages and prices.

Accepted Answer

A) True 
 B)False

Question 8

According to the real balances effect,if the price level rises then the real value of savings increases and individuals will buy more output.

Accepted Answer

A) True 
 B)False

Question 9

According to supply-side theories,an increase in supply incentives shifts the aggregate:

Accepted Answer

A)   Supply curve to the left.
B)   Supply curve to the right.
C)   Demand curve to the left.
D)   Demand curve to the right.E) A) and D)
F) C) and D)

Exam 11: Aggregate Supply and Demand

According to the text,which of the following is a determinant of macroeconomic performance?

Correct Answer
verified

According to supply-side theories,an increase in supply incentives shifts the aggregate:

Correct Answer
verified

Table 11.1-Aggregate supply and demand -In Table 11.1,at what price level does macro equilibrium occur?

Correct Answer
verified

Keynesian policy levers include:

Correct Answer
verified

According to the foreign trade effect,if the U.S.price level rises then U.S.exports are more expensive for foreigners to buy so the level of real GDP decreases.

Correct Answer
verified

According to the real balances effect,if the price level rises then the real value of savings increases and individuals will buy more output.

Correct Answer
verified

Which of the following suggests that lower average prices stimulate more borrowing?

Correct Answer
verified

The Classical approach dominated economic policy during:

Correct Answer
verified

The cornerstone of Classical theory is constant wages and prices.

Correct Answer
verified

Exam 11: Aggregate Supply and Demand

According to the text,which of the following is a determinant of macroeconomic performance?

Correct AnswerverifiedShow Answer

According to supply-side theories,an increase in supply incentives shifts the aggregate:

Correct AnswerverifiedShow Answer

Table 11.1-Aggregate supply and demand -In Table 11.1,at what price level does macro equilibrium occur?

Correct AnswerverifiedShow Answer

Keynesian policy levers include:

Correct AnswerverifiedShow Answer

According to the foreign trade effect,if the U.S.price level rises then U.S.exports are more expensive for foreigners to buy so the level of real GDP decreases.

Correct AnswerverifiedShow Answer

According to the real balances effect,if the price level rises then the real value of savings increases and individuals will buy more output.

Correct AnswerverifiedShow Answer

Which of the following suggests that lower average prices stimulate more borrowing?

Correct AnswerverifiedShow Answer

The Classical approach dominated economic policy during:

Correct AnswerverifiedShow Answer

The cornerstone of Classical theory is constant wages and prices.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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