What is TRUE of the aggregate supply curve in the classical model? A) The aggregate supply curve is downward sloping. B) The aggregate supply curve is vertical. C) The aggregate supply curve is horizontal. D) The aggregate supply curve is not determined by the level of employment. ANSWER B
Date: September 2nd, 2020
Without an accepted medium of exchange, people A) have to specialize in one area of production. B) have to resort to barter in order to exchange goods and services. C) have to rely on gold or silver in order to exchange goods and services. D) can efficiently obtain goods and services. ANSWER B
Date: September 2nd, 2020
An indirect effect of an increase in the price level works through A) changes in trade balances as domestic goods become more expensive, causing interest rates to move in the opposite direction from the change in the exchange rate. B) interest rates as people save more as the higher prices make their money balances less […]
Date: September 2nd, 2020
What is TRUE when the credit market is in equilibrium? A) The legal minimum wage equals the actual wage. B) Desired saving equals desired investment. C) Desired employment equals the number of jobs available. D) Desired consumption spending equals the total of saving plus investment. ANSWER B
Date: September 2nd, 2020
In the above figure, when real disposable income is less than 600, then A) consumption is less than disposable income. B) consumption is the same as disposable income. C) consumption is more than disposable income. D) the MPC will fall. ANSWER C
Date: September 2nd, 2020
The wealth effect is another term for the A) the interest rate effect. B) the real-balance effect. C) substitution effect. D) the indirect effect. ANSWER B
Date: September 2nd, 2020
Which of the following will tend to cause an increase in technology? A) increases in human capital B) an increase in research and development expenditures C) the development of new ideas D) all of the above ANSWER D
Date: September 2nd, 2020
An increase in the demand for a good is represented by: A) a leftward movement along the demand curve. B) a rightward movement along the demand curve. C) a left shift to a new demand curve. D) a right shift to a new demand curve. ANSWER D
Date: September 2nd, 2020
Suppose there currently is an inflationary ga A) Reduce government spending. B) Increase government spending. C) Reduce the nation’s aggregate supply. D) nothing ANSWER A
Date: September 2nd, 2020
As a result of money in an economy, A) transaction costs are higher than would be the case in a barter economy. B) people are greedier than in a barter economy. C) real Gross Domestic Product (GDP) and economic growth are greater than they would be in a barter economy. D) stealing exists and people […]
Date: September 2nd, 2020
