1. Other things the same, the aggregate quantity of output supplied will decrease if the price level:
a. is lower than expected so that firms believe the relative price of their output has increased
b. is lower than expected so that firms believe the relative price of their output has decreased
c. is higher than expected so that firms believe the relative price of their output has increased.
d. is higher than expected so that firms believe the relative price of their output has decreased.
2. Over the long run the Volcker disinflation:
a. shifted the short-run and long-run Phillips curves left.
b. shifted the short-run, but not the long-run Phillips curve left
c. shifted the long-run, but not the short-run Phillips curve left
d. none of the above is correct
3.If the Fed conducts open-market sales, which of the following three increase: interest rates, prices, investment spending?
a.interest rates, prices, investment spending
b. interest rates and prices, not investment spending
c. interest rates and investment, not prices
d. interest rates, not investment or prices
4. Which of the following tends to make aggregate demand shift right farther than the amount government expenditures increase?
a. the crowding-out effect
b. the multiplier effect
c. the wealth effect
d. the interest-rate effect
5. Imagine that the economy is in long-run equilibrium. Then, perhaps because of improved international relations and increased confidence in policy makers, people become more optimistic about the future and stay this way for some time. Which curve shifts and in which direction?
a. aggregate demand shifts right
b. aggregate demand shifts left
c. aggregate supply shifts right.
d. aggregate supply shifts left.
a. is lower than expected so that firms believe the relative price of their output has increased
b. is lower than expected so that firms believe the relative price of their output has decreased
c. is higher than expected so that firms believe the relative price of their output has increased.
d. is higher than expected so that firms believe the relative price of their output has decreased.
2. Over the long run the Volcker disinflation:
a. shifted the short-run and long-run Phillips curves left.
b. shifted the short-run, but not the long-run Phillips curve left
c. shifted the long-run, but not the short-run Phillips curve left
d. none of the above is correct
3.If the Fed conducts open-market sales, which of the following three increase: interest rates, prices, investment spending?
a.interest rates, prices, investment spending
b. interest rates and prices, not investment spending
c. interest rates and investment, not prices
d. interest rates, not investment or prices
4. Which of the following tends to make aggregate demand shift right farther than the amount government expenditures increase?
a. the crowding-out effect
b. the multiplier effect
c. the wealth effect
d. the interest-rate effect
5. Imagine that the economy is in long-run equilibrium. Then, perhaps because of improved international relations and increased confidence in policy makers, people become more optimistic about the future and stay this way for some time. Which curve shifts and in which direction?
a. aggregate demand shifts right
b. aggregate demand shifts left
c. aggregate supply shifts right.
d. aggregate supply shifts left.