Economics Kahoot
Y2
The natural level of output occurs at
the U.S. import and an Irish export
When Jamie, a U.S. citizen, purchases a wool sweater made in Ireland, the purchase is
True
When NCO<0, there is capital inflow
True
When output rises, unemployment falls
increases; decreases
When the interest rate increases, the opportunity cost of holding money _____ so the quantity of money demanded ________.
misconception theory
When the price level rises, firms think that the price of their product is increasing. This describes the
Government purchase effect
Which of the following does not explain why AD is downward sloping
A U.S. company opens an auto parts factory in Canada
Which of the following is an example of U.S. foreign direct investment?
Short Run Aggregate Supply (SRAS) shifts left
Which of the following would cause stagflation?
True
With a trade surplus, S>I and NCO>0
more domestic goods and fewer foreign goods.
A depreciation of the U.S. real exchange rate induces U.S. consumers to buy
True
A from might offer efficiency wages to reduce worker turnover and thereby reduce production costs.
Vertical
According to liquidity preference theory, the money-supply curve is
True
Aggregate Demand equals the equation Y=C + I + G + NX
fall; decrease
An increase in household saving causes consumption to _____ and aggregate demand to _______.
reduce; increasing
An increase in the money supply will ____ interest rates, _____ investment and aggregate demand.
False
Because economists understand what factors change GDP, they can predict recessions with a fair amount of accuracy.
True
Both monetary and fiscal policy affect aggregate demand
True
Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate.
government spending and taxes
Fiscal policy refers to the idea that aggregate demand is affected by changes in
True
Frictional unemployment is often thought to explain relatively short spells of unemployment.
employed and in the labor force
Gwen is an unpaid worker in her family's restaurant. The Bureau of Labor Statistics counts Gwen as
True. 80*150=12,000
If the exchange rate is 80 yen per dollar, then a hotel room in Tokyo that costs 12,000 yen costs $150.
structural; surplus of labor
Minimum wages create _____ unemployment in markets where they create a ______.
False
Policymakers can step in and shift SRAS by increasing or decreasing spending.
shifts in both aggregate demand (AD) and short run aggregate supply (SRAS)
Recessions can be caused by
True
Technological progress shifts the long-run aggregate supply curve to the right.
False
The Fed uses fiscal policy to shift aggregate demand
a vertical Long Range Aggregate Supply (LRAS)
The classical dichotomy and monetary neutrality are represented graphically by
