A decrease in the price level, holding the nominal money supply constant, will shift the LM curve a. upward and to the right. b. downward and to the left. c. downward and to the right. d. upward and to the left. ANSWER A
Date: September 10th, 2020
If rational expectations hold, aggregate demand policy actions only affect output if a. they are predictable. b. they are unpredictable. c. they are systematic. d. they are permanent. e. both b and d. ANSWER B
Date: September 10th, 2020
In determining the benefit of additional investment to the representative firm, we consider the marginal product of A) current capital. B) future capital C) current labor. D) future labor. ANSWER B
Date: September 10th, 2020
Inventory is the a. net change in inventories of final goods awaiting sale. b. net change in inventories of materials used in the production process. c. included in investment when calculating GDP. d. Both a and b. e. All of the above. ANSWER E
Date: September 10th, 2020
Total spending by all levels of government in the United States in 2012 amounted to roughly ________ per person. A) $20,000 B) $2,000 C) $200,000 D) $200 ANSWER A
Date: September 10th, 2020
Which of the following is not a category of state and local government outlays? A) purchases of goods and services B) grants in aid C) transfer payments D) interest payments ANSWER B
Date: September 10th, 2020
National income is defined as gross national product minus a. depreciation and net taxes. b. national income. c. depreciation. d. personal disposable income. ANSWER A
Date: September 10th, 2020
As the quantity of labor increases, the marginal product of labor A) is constant. B) increases. C) decreases. D) may either increase or decrease. ANSWER C
Date: September 10th, 2020
With respect to Figure 3.1, the classicists argued that a. the relevant aggregate supply curve is labeled B. b. the curves labeled B and G are both relevant during recessions. c. only the supply curve labeled M is important. d. None of the above ANSWER A
Date: September 10th, 2020
Technological advances lead to ________. A) a shift of the short run AS curve up B) a shift of the long run AS curve to the left C) an upward movement along the long run AS curve D) all of the above E) none of the above ANSWER E
Date: September 10th, 2020
