Quiz #6- Marcoeconomics Spring 2016

Other things the same, an increase in the price level induces people to hold

B. more money, they they can lend less, and the interest rate rises

Most economisit use the aggregate demand and aggregate supply model primarily to analyze

B. the long-run effect of international trade policies

Which of the following is not a determinant of the long-run level of the real GDP?

B. the price level

Which of the following would shift the aggregate supply curve to the right?

B. a decrease in the expected price level

Which of the following will reduce the price level and real output in the short run.

A. a decrease in the money supply

Which of the following is included in the aggregate demand for goods and services?

A. consumption B. investment C. net exports D. all of the above are correct<--

Refer to the Figure 33.1 An increase in the money supply would move the economy from C to

B in the short run and A in the long run

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

B. a decrease in the capital stock

Suppose the economy is initially in the long-run equilibrium and aggregate demand rises.In the long run prices

C. are higher and input is the same as the original long-run equilibrium

A decrease in the price level, causes the interest rate to

C. decrease, the dollar to depreciate, and net exports increase

An increase in the expected price level shifts short-run aggregate supply to the

D. left, and an increase in the actual price level does not shift short-run aggregate supply

The sticky-wage theory of the short-run aggregate supply curve says that when the price level rises more than expected,

D. production is more profitable and employment rises