2

which of the following would NOT cause a shift in the aggregate demand curve?

A change in the price leve

The current consumer price index is?

A cost-of-goods basis

what would cause the price level to rise and unemployment to increase?

A shift to the right of the aggregate demand curve

if the market power of firms increases, what happens in the AD/AS model?

Aggregate supply shifts left

the collapse of home values that began in 2008 led to ____ in Americans savings rates, shifting aggregate demand to the ____?

An increase; left

which of the following does not increase productivity ?

An increased money supply

Increases in _____ often lead to economic growth?

Capital

the 1973 oil shock created?

Cost-Push inflation

_____ occurs when a negative supply shock hits the economy, shifting the short-run aggregate supply curve leftward?

Cost-push inflation

Which of the following is not a source of productivity growth?

Decreasing the capital-to-labor ratio

the GDP deflator shows that since the mid- 1980's, the US economy has ha?

Disinflation

The government decides to subsidize the development of new communications network. it is acting in its role to promote economic growth by?

Enhancing physical and human capital

in the Keynesian Model, the price level is ________; in the aggregate demand and supply model, the price level is ______?

Fixed; Flexible

Which of the following statements regarding the types of unemployment is true?

Fricitional unemployment is generally short term, whereas structural unemployment is often long term

Suppose a booming stock market encourages consumption spending to rise dramatically. what would be the most likely long-run impact?

GDP first rises, and then falls back to long-run equilibrium

The higher the productivity of a nation, the?

Higher is its standard of living

which of the following factors is NOT a component of aggregate demand?

Income

in Productovia, aggregate demand increases and aggregate supply decreases. Based on the shifts in these two curves, what is a likely outcome?

Inflation

Which statement about long-run economic growth is true?

It is likely to occur when the capacity to produce goods and services increases

Generally nations with the _______ economic freedom also have the _____ per capita GDP

Least; Lowest

The non accelerating inflation rate of employment is the unemployment rate associated with ___ inflation and ____ unemployment

Low; High

what is generally NOT considered a problem with using the consumer price index to measure consumer prices?

Many federal benefits and income tax rates are indexed to the consumer price index

the proportion of additional income that consumers spend is known as the?

Marginal propensity to consume

Which of the following is NOT a factor in the production function?

Money

When Main Street Bank buys new automatic teller machines, the quantity of ___ in the economy decreases

Physical Capital

The relationship between economic freedom and per capita GDP is?

Positive

if oil prices decrease, the short run aggregate supply curve shifts ____ and output supplied will be ___?

Right; increased

If there is a decrease in input prices, the short run aggregate supply curve will shift from SRAS0 to _______ and the price level will become?

SRAS1; P1

In the US our principle measure of inflation is?

The Consumer Price Index

The Potbelly Pothole Company is undertaking some investment in its plant. suppose interest rates fall and new technologies increase the return on its investment. what is likely to happen?

The company's demand for investment will rise

the idea that new spending creates more new spending is known as the?

The multiplier effect

Which of the following might be a cause of the change in short-run aggregate supply?

Unions successfully negotiate higher wages

One reason the amount of real output demanded declines when the aggregate price level rises is the resulting reduction in household wealth, called the?

Wealth Effect

the collapse of home values that began in 2008 led to ____ in Americans consumption, and _____ in their savings rates?

a decrease; an increase

what would cause the price level to decrease and employment to increase?

a shift to the right of the SRAS curve

According to Keynes, what determines the level of employment and income?

aggregate expenditures

Which of the following will shift the short-run aggregate supply curve to the right?

an increase in immigration from other countries

which of the following would NOT affect (shift) the short run aggregate supply curve?

an increase in the price level

The drop in aggregate demand that occurred during the great depression caused a drop in real GDP:

and deflation

the more time a free market economy has to adjust to price changes, the?

closer GDP gets to the natural rate of output

Decreasing the accessibility to college in order to funnel workers into the workforce faster will?

decrease productivity of the economy

Which is NOT consistent with the level of output in the long run?

high inflation

Inflation has significant long-run effects on the economy because?

it distorts the price signal and produces incentives for speculation

The Cost of cyclical unemployment can be minimized by?

keeping the economy on a steady, low inflationary growth path

Cost-Push inflation occurs because a shift to the?

left of the short-run aggregate supply curve

Developed nations tend to have?

limited labor supplies but lots of capital

if a country has a low capital-to-labor ratio, then it tends to have

low labor productivity and low wages

the aggregate demand curve displays?

real GDP demanded at various price levels

other tings equal, then the US aggregate price level falls, US exports ______ and US imports ______?

rise; fall

Cost-Push inflation occurs when?

rising resource costs reduce short-run aggregate supply

The aggregate demand curve:

shows the amount of real GDP that will be demanded at each possible price level

A production function?

shows the output that is produced using different combinations of inputs combined with existing technology

increases in ____ often lead to economic growth

technology

in the US, the census bureau computes the unemployment rates from?

the current population survey

A change in _____ will cause a change in the quantity demanded of real GDP

the price level

on-the-job training can lead to an increase in?

the quality of the labor force