Homework 6
A
A fall in labor costs will cause aggregate: A. Supply to increase B. Demand to increase C. Supply to decrease D. Demand to decrease
C
In the diagram, a shift from AS1 to AS2 might be caused by: A. Stricter government regulations B. An incrase in the prices of imported resources C. A decreased in the prices of domestic resources. D. An increase in business taxes
True
True/False? A change in business taxes and regulation can affect production costs and aggregate supply.
C
Which of the diagrams best portrays the effects of an increase in foreign spending on US products?
B
An increase in productivity will: A. Increase aggregate demand B. Increase aggregate supply C. Increase aggregate supply and aggregate demand D. Decrease aggregate supply and aggregate demand
C
Graphically, cost-push inflation is shown as a: A. Leftward shift of the AD curve B. Rightward shift of the AS curve C. Leftward shift of the AS curve D. Rightward shift of the AD curve
A
Graphically, demand-pull inflation is shown as a: A. Rightward shift of the AD curve along an upsloping AS curve. B. Leftward shift of the AS curve along a downsloping AD curve. C. Leftward shift of the AS curve along an upsloping AD curve D. Rightward shift of the AD curve along a downsloping AS curve
B
Refer to the data. If the amount of real output demanded at each price level falls by $200, this might have been caused by: A. An increase in net exports B. A worsening of business expectations C. An increase in consumer wealth D. A decrease in the personal income tax
C
Refer to the diagram. A shift of the aggregate demand curve from AD1 to AD0 might be caused by a(n): A. Decrease in aggregate supply B. Decrease in the amount of output supplied C. Increase in investment spending D. Decrease in net export spending
D
Refer to the diagram. If equilibrium real output is Q2, then: A. Aggregate demand is AD1 B. The equilibrium price level is P1 C. Producers will supply output level Q1 D. The equilibrium price level is P2
A
Refer to the diagram. Other things equal, a shift of the aggregate supply curve from AS0 to AS1 might be caused by a(n): A. Increase in government regulation B. Increase in aggregate demand C. Increase in productivity D. Decline in nominal wages
B
The economy experiences an increase in the price level and a decrease in real domestic output. Which of the following is a likely explanation? A. Productivity has increased B. Input prices have increased C. There has been an increase in government spending D. Government regulations have been reduced
D
The economy experiences an increase in the price level and an increase in real domestic output. Which is a likely explanation? A. Interest rates have increased B. Business taxes have increased C. Wage rates have fallen D. Net exports have increased
A
The foreign purchases, interest rate, and real-balances effects explain why the: A. Aggregate demand curve is downward-sloping B. Aggregate demand curve may shift to the left or right C. Economy will adjust towards equilibrium D. Aggregate expenditures schedule may shift up or down
D
In the diagram, a shift from AS3 to AS2 might be caused by an increase in: A. Business taxes and government regulation B. The prices of imported resources C. The prices of domestic resources D. Productivity
D
A decrease in expected returns on investment will most likely shift the AD curve to the: A. Right because C will increase B. Left because C will decrease C. Right because Ig will increase D. Left because Ig will decrease
C
With cost-push inflation in the short run, there will be: A. An increase in real GDP B. A leftward shift in the aggregate demand curve C. A decrease in real GDP D. A decrease in unemployment
A
If Congress passed new laws significantly increasing the regulation of business, this action would tend to: A. Increase per-unit production costs and shift the aggregate supply curve to the left B. Increase per-unit production costs and shift the aggregate supply curve to the right C. Increase per-unit production costs and shift the aggregate demand curve to the left D. Decrease per-unit production costs and shift the aggregate supply curve to the left
B
In the figure, AD1 and AS1 represent the original aggregate supply and demand curves and AD2 show the new aggregate demand and supply curves. The change in aggregate supply from AS1 to AS2 could be caused by: A. A reduction in the price level B. The increase in productivity C. An increase in business taxes D. The real-balances, interest-rate, and foreign purchases effects.
False
True/False? Minimum wage laws tend to make the price level more flexible rather than less flexible.
