If a shift in aggregate demand only affects real Gross Domestic Product (GDP), then the short-run aggregate supply (SRAS) curve must be A) upward sloping. B) downward sloping. C) horizontal. D) vertical. ANSWER C
Date: September 2nd, 2020
What is measured on the horizontal axis on the aggregate demand graph? A) nominal income B) real GDP per year C) unemployment D) the price level ANSWER B
Date: September 2nd, 2020
According to the above table, the value of MPS is A) 0.9. B) 0.1. C) 0.2. D) increasing as real disposable income rises. ANSWER B
Date: September 2nd, 2020
How does a government budget deficit occur? A) A government’s tax revenues exceed its spending. B) If a nation carries a public debt, it must be running a deficit every year. C) A government’s spending exceeds its tax revenues. D) A nation earns more on exports than it spends on imports. ANSWER C
Date: September 2nd, 2020
What does research tell us about the impact of Ricardian equivalence effects on the economy? A) Ricardian equivalence effects may exist, but their magnitudes are unclear. B) There is no evidence of any impact of Ricardian equivalence effects. C) Ricardian equivalence effects have a huge impact on aggregate demand. D) There is a very small […]
Date: September 2nd, 2020
It is conceivable that the APC, APS, MPC, and MPS could simultaneously be A) APC = 1.0; APS = 0; MPC = 1.0; MPS = 0.15. B) APC = 1.0; APS = 0.1; MPC = 0.8; MPS = 0.25. C) APC = 1.3; APS = -0.3; MPC = 0.9; MPS = 0.1. D) APC = […]
Date: September 2nd, 2020
The value of all the equipment and structures of an economy is referred to as: A) wealth. B) national income. C) asset value. D) capital stock. ANSWER D
Date: September 2nd, 2020
Stocks change ________ whereas flows relate to ________. A) and that causes flows to change; changes that have no impact on stocks B) between points in time; changes within a given time period C) within a given period of time; changes between points in time D) only at the end of each year; amounts at […]
Date: September 2nd, 2020
According to new growth theory, economic growth is driven by A) new ideas. B) the division of labor. C) positive externalities. D) higher birth rates. ANSWER A
Date: September 2nd, 2020
The process by which the stock of equipment and structures available to an economy is increased by investment is referred to as: A) output expansion. B) autonomous growth. C) capital accumulation. D) investment growth. ANSWER C
Date: September 2nd, 2020
