nigg

Which of the following will cause a rightward shift of the short-run aggregate supply curve?

(A) An increase in consumption spending (B) An increase in nominal wages (C) An increase in income taxes (D) A decrease in the price level (E) A decrease in the costs of production

If the government increases expenditures on goods and services and increases taxation by the same amount, which of the following will occur?

(A) Aggregate demand will be unchanged. (B) Aggregate demand will increase. (C) Interest rates will decrease. (D) The money supply will decrease. (E) The money supply will increase.

20. Which of the following changes will have the smallest expansionary effect on aggregate demand in the short run?

(A) An increase in exports of $100 (B) An increase in government spending of $100 (C) A decrease in taxes of $100 (D) A decrease in imports of $100 (E) A decrease in savings of $100

Which of the following will result in a rightward shift of the aggregate demand curve?

(A) An increase in the income tax rate (B) An increase in exports (C) A decrease in the price level (D) A decrease in household income (E) A decrease in government spending

Recession can be caused by

(A) an increase in the price level (B) an increase in exports (C) a decrease in interest rates (D) a decrease in aggregate demand (E) a decrease in wages

A rightward shift in the short-run aggregate supply curve will occur when

(A) exports exceed imports (B) the money supply increases (C) the prices of imported raw materials increase (D) the stock of physical capital increases (E) unions have negotiated a wage increase for their members

An aggregate supply curve may be horizontal over some range because within that range

(A)a higher price level leads to higher interest rates, which reduce the money supply and consumer spending (B) changes in the aggregate price level do not induce substitution (C) output cannot be increased unless prices and interest rates increase (D) rigid prices prevent employment from fluctuating (E) resources are underemployed and an increase in demand will be satisfied without any pressure on the price level

A contractionary supply shock would most likely result in

A) an increase in aggregate demand (B) an increase in national income (C) an increase in gross domestic product (D) a decrease in the general price level (E) a decrease in employment

The intersection of the aggregate supply curve and the aggregate demand curve occurs at the economy's equilibrium level of

A) real investment and the interest rate (B) real disposable income and unemployment (C) real national output and the price level (D) government expenditures and taxes (E) imports and exports