Filters
Question type
Study Flashcards

How will a favourable supply shock shift short-run aggregate supply,and how will output change?


A) It will shift short-run aggregate supply left, making output rise.
B) It will shift short-run aggregate supply left, making output fall.
C) It will shift short-run aggregate supply right, making output rise.
D) It will shift short-run aggregate supply right, making output fall.

E) B) and D)
F) C) and D)

Correct Answer

verifed

verified

The logic behind the tradeoff between inflation and unemployment is that high aggregate demand puts upward pressure on wages and prices while raising output.

A) True
B) False

Correct Answer

verifed

verified

Figure 16-3 Figure 16-3 -Refer to the Figure 16-3.Starting from c and 3,where does an increase in aggregate demand move the economy to,in the short run and the long run? A) a and 1 in the short run, b and 2 in the long run B) b and 2 in the short run, a and 1 in the long run C) d and 4 in the short run, e and 5 in the long run D) d and 2 in the short run, a and 5 in the long run -Refer to the Figure 16-3.Starting from c and 3,where does an increase in aggregate demand move the economy to,in the short run and the long run?


A) a and 1 in the short run, b and 2 in the long run
B) b and 2 in the short run, a and 1 in the long run
C) d and 4 in the short run, e and 5 in the long run
D) d and 2 in the short run, a and 5 in the long run

E) A) and D)
F) None of the above

Correct Answer

verifed

verified

Which of the following is a long-run economic aspect on which most economists agree?


A) The natural rate of unemployment depends primarily on the level of aggregate demand.
B) Inflation depends primarily upon the money supply growth rate.
C) There is a tradeoff between the inflation rate and the natural rate of unemployment.
D) The rate of economic growth depends primarily on the growth in money supply.

E) All of the above
F) C) and D)

Correct Answer

verifed

verified

In the nineteenth century,some countries were on gold standards so that on average the money supply growth rate was close to zero and expected inflation was more or less constant.For these countries during this time period,we find that increases in inflation were generally associated with falling unemployment.Are these findings consistent with Friedman and Phelps's theories,and why?


A) Yes, because they argued that when inflation was higher than expected, unemployment would fall.
B) Yes, because they argued that when prices rose unemployment would fall, whether actual inflation was higher than expected or not.
C) No, because they argued that higher inflation would increase unemployment.
D) No, because they argued that inflation and unemployment were unrelated.

E) A) and C)
F) A) and D)

Correct Answer

verifed

verified

How does an increase in the aggregate demand translate in the Phillips curve model?


A) as an upward movement along the short-run Phillips curve
B) as a shift to the right of the short-run Phillips curve
C) as a downward movement along the short-run Phillips curve
D) as a shift to the left of the short-run Phillips curve

E) A) and B)
F) B) and D)

Correct Answer

verifed

verified

How does the short-run Phillips curve reflect a financial crisis as the one in 2008-2009?


A) as a leftward shift in the short-run Phillips curve
B) as a rightward shift in the short-run Phillips curve
C) as a downward movement along the short-run Phillips curve
D) as an upward movement along the short-run Phillips curve

E) C) and D)
F) A) and B)

Correct Answer

verifed

verified

Suppose that reducing inflation 3 percentage points would cost a country 12 percent of annual output.What is this country's sacrifice ratio?


A) 3
B) 3.5
C) 4
D) 12

E) None of the above
F) All of the above

Correct Answer

verifed

verified

A decrease in expected inflation shifts which of the following curves,and in what direction?


A) It shifts the short-run Phillips curve right.
B) It shifts the short-run Phillips curve left.
C) It shifts the long-run Phillips curve right.
D) It shifts the long-run Phillips curve left.

E) B) and D)
F) None of the above

Correct Answer

verifed

verified

The position of the long-run Phillips curve depends on what?


A) the natural rate of unemployment
B) the actual rate of unemployment
C) the actual inflation rate
D) the expected inflation rate

E) None of the above
F) B) and C)

Correct Answer

verifed

verified

Which of the following data supported A.W.Phillips' findings?


A) data from 1861-1957 for the United Kingdom
B) data from 1861-1957 for the United States
C) data mostly from the post-World War II period in the United Kingdom
D) data mostly from the post-World War II period in the United States

E) A) and C)
F) C) and D)

Correct Answer

verifed

verified

Figure 16-1 Figure 16-1 -Refer to the Figure 16-1.If the economy starts at c and 1,then in the short run,where does an increase in government expenditures move the economy? A) b and 2 B) e and 3 C) d and 3 D) c and 2 -Refer to the Figure 16-1.If the economy starts at c and 1,then in the short run,where does an increase in government expenditures move the economy?


A) b and 2
B) e and 3
C) d and 3
D) c and 2

E) All of the above
F) A) and B)

Correct Answer

verifed

verified

What did Friedman and Phelps argue about inflation and unemployment?


A) that in the long run, monetary growth did not influence those factors that determine the unemployment rate
B) that the Phillips curve could be exploited in the long run by using monetary, but not fiscal policy
C) that the short-run Phillips curve was very steep
D) that there was neither a short-run nor long-run tradeoff between inflation and unemployment

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

Suppose the minimum wage decreased.At any given rate of inflation,what would happen to output and employment?


A) Both output and employment would be higher.
B) Both output and employment would be lower.
C) Output would be higher and unemployment would be lower.
D) Unemployment would be lower and output would be higher.

E) None of the above
F) A) and B)

Correct Answer

verifed

verified

Figure 16-4 Figure 16-4 -Refer to the Figure 16-4.At point b,how do actual and expected inflation rates and unemployment rates compare? A) The actual inflation rate is less than the expected inflation rate, and the actual rate of unemployment exceeds the natural rate of unemployment. B) The actual inflation rate is greater than the expected inflation rate, and the actual rate of unemployment exceeds the natural rate of unemployment. C) The actual inflation rate is less than the expected inflation rate, and the actual rate of unemployment is less than the natural rate of unemployment. D) The actual inflation rate is greater than the expected inflation rate, and the actual rate of unemployment is less than the natural rate of unemployment. -Refer to the Figure 16-4.At point b,how do actual and expected inflation rates and unemployment rates compare?


A) The actual inflation rate is less than the expected inflation rate, and the actual rate of unemployment exceeds the natural rate of unemployment.
B) The actual inflation rate is greater than the expected inflation rate, and the actual rate of unemployment exceeds the natural rate of unemployment.
C) The actual inflation rate is less than the expected inflation rate, and the actual rate of unemployment is less than the natural rate of unemployment.
D) The actual inflation rate is greater than the expected inflation rate, and the actual rate of unemployment is less than the natural rate of unemployment.

E) A) and B)
F) B) and D)

Correct Answer

verifed

verified

Figure 16-3 Figure 16-3 -Refer to the Figure 16-3.Starting from c and 3,in the short run,where does an unexpected decrease in money supply growth move the economy to? A) a and 1 B) b and 2 C) e and 5 D) d and 4 -Refer to the Figure 16-3.Starting from c and 3,in the short run,where does an unexpected decrease in money supply growth move the economy to?


A) a and 1
B) b and 2
C) e and 5
D) d and 4

E) A) and C)
F) All of the above

Correct Answer

verifed

verified

Figure 16-3 Figure 16-3 -Refer to the Figure 16-3.Starting from c and 3,in the long run,where does an increase in money supply growth move the economy to? A) a and 1 B) e and 4 C) d and 4 D) e and 5 -Refer to the Figure 16-3.Starting from c and 3,in the long run,where does an increase in money supply growth move the economy to?


A) a and 1
B) e and 4
C) d and 4
D) e and 5

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

Which of the following would shift aggregate supply to the right?


A) increasing commodity prices
B) an increase in money supply
C) an increase in wages
D) the discovery of a new, cheaper form of energy

E) All of the above
F) A) and B)

Correct Answer

verifed

verified

Figure 16-1 Figure 16-1 -Refer to the Figure 16-1.If the economy starts at c and 1,then in the short run,where does a decrease in the money supply growth rate move the economy? A) e and 1 B) d and 2 C) d and 3 D) a and 3 -Refer to the Figure 16-1.If the economy starts at c and 1,then in the short run,where does a decrease in the money supply growth rate move the economy?


A) e and 1
B) d and 2
C) d and 3
D) a and 3

E) All of the above
F) B) and C)

Correct Answer

verifed

verified

Which of the following best describes how the natural rate of unemployment changes?


A) It cannot change; it is constant over time.
B) It does not change by any actions of the government.
C) It changes by changing the maximum legal number of work hours a week.
D) It changes by changing the rate at which the Bank of Canada increases the money supply.

E) B) and D)
F) A) and C)

Correct Answer

verifed

verified

Showing 181 - 200 of 207

Related Exams

Exam 1

Ten Principles of Economics

210 Questions

Exam 2

Thinking Like an Economist

235 Questions

Exam 3

Interdependence and the Gains from Trade

205 Questions

Exam 4

The Market Forces of Supply and Demand (PART 1)

246 Questions

Exam 4

The Market Forces of Supply and Demand (PART 2)

64 Questions

Exam 5

Measuring a Nation's Income

169 Questions

Exam 6

Measuring the Cost of Living

181 Questions

Exam 7

Production and Growth

191 Questions

Exam 8

Saving,Investment,and the Financial System

213 Questions

Exam 9

Unemployment and Its Natural Rate

191 Questions

Exam 10

The Monetary System

201 Questions

Exam 11

Money Growth and Inflation

198 Questions

Exam 12

Open-Economy Macroeconomics: Basic Concepts

220 Questions

Exam 13

A Macroeconomic Theory of the Small Open Economy

189 Questions

Exam 14

Aggregate Demand and Aggregate Supply

246 Questions

Exam 15

The Influence of Monetary and Fiscal Policy on Aggregate Demand

224 Questions

Exam 17

Five Debates over Macroeconomic Policy

120 Questions

Show Answer