The long-run aggregate supply curve occurs at the level of real GDP consistent with A) no inflation. B) the natural rate of unemployment. C) individuals’ tastes and preferences. D) low levels of inflation. ANSWER B
Date: September 2nd, 2020
The curve in the above figure will shift to the right when A) the price level falls. B) the proportion of the population that is elderly increases. C) population falls. D) technology increases. ANSWER D
Date: September 2nd, 2020
According to the classical model, the income generated by production is A) always insufficient to purchase all the goods and services produced. B) enough to purchase all the goods and services produced. C) fully spent on savings. D) enough to meet the needs of everyone in society. ANSWER B
Date: September 2nd, 2020
A constant rate of U.S. economic growth over a given period of years would involve A) adding the same amount of real dollars to real GDP per capita each year. B) compounding the percentage increase in real GDP per capita over the years. C) adding the same amount of nominal dollars to real GDP per […]
Date: September 2nd, 2020
Which of the following does NOT affect the long-run aggregate supply curve? A) technology B) endowments of resources C) price level D) production possibilities curve ANSWER C
Date: September 2nd, 2020
In the classical model, an increase in the unemployment rate A) will result in an increase in the price level if the reduction in output is caused by a change in aggregate demand. B) will likely be temporary. C) is a signal of demand-pull inflation. D) will persist when the reduction in output is caused […]
Date: September 2nd, 2020
Assume a country produces two types of goods: manufactured goods and agricultural goods. When this country experiences economic growth, we know that A) the production possibilities curve will shift inward. B) there will be movement along the curve toward more agricultural goods. C) there will be a movement along the curve toward more manufactured goods. […]
Date: September 2nd, 2020
In the classical model, aggregate demand and aggregate supply will A) not exist. B) intersect at the point of full employment. C) intersect at less than full employment. D) not intersect. ANSWER B
Date: September 2nd, 2020
When looking at economic growth in a country, the distribution of output and income A) is shared equally. B) is skewed toward the lowest quintile of the population. C) generally follows predictable patterns. D) is not taken into consideration. ANSWER D
Date: September 2nd, 2020
The implication of Say’s law is that A) a barter economy is the most efficient economy. B) increased consumption today leads to increased production tomorrow. C) overproduction in a market economy is not possible. D) Gross Domestic Product is the same whether we use the expenditure approach or the income approach. ANSWER C
Date: September 2nd, 2020
