Question 1

Suppose the Midwest experiences a major drought, decreasing yields of corn, a major input in gasoline, and an influx of processed foods. How would this be represented in the AD/AS model?

Accepted Answer

A)   The long-run aggregate supply curve would shift to the left.
B)   The long-run aggregate supply curve would shift to the right.
C)   The short-run aggregate supply curve would shift to the left.
D)   The short-run aggregate supply curve would shift to the right.E) B) and C)
F) All of the above

Question 2

A supply curve that slopes upward reflects:

Accepted Answer

A)   aggregate supply in the short run.
B)   aggregate supply in the long run.
C)   an individual firm's supply curve.
D)   an individual industry's supply curve.E) A) and B)
F) A) and C)

Question 3

Stagflation refers to a situation in which an economy is experiencing _______ economic growth and _______ inflation.

Accepted Answer

A)   high; high
B)   low; low
C)   high; low
D)   low; highE) C) and D)
F) B) and C)

Question 4

Which of the following is a component of aggregate demand?

Accepted Answer

A)   Consumption
B)   Income
C)   Taxes
D)   Transfer paymentsE) A) and B)
F) A) and C)

Question 5

Which of the following would likely cause the aggregate demand curve to shift to the right?

Accepted Answer

A)   Increased income taxes
B)   Increased firm confidence
C)   Decreased government spending
D)   Increase in the aggregate price levelE) None of the above
F) A) and B)

Question 6

A decrease in consumer confidence will cause:

Accepted Answer

A)   a downward movement along the aggregate demand curve.
B)   the aggregate demand curve to shift to the right.
C)   the aggregate demand curve to shift to the left.
D)   an upward movement along the aggregate demand curve.E) All of the above
F) A) and D)

Exam 12: Aggregatedemand and Aggregate Supply

Which of the following is a component of aggregate demand?

Correct Answer
verified

Suppose the Midwest experiences a major drought, decreasing yields of corn, a major input in gasoline, and an influx of processed foods. How would this be represented in the AD/AS model?

Correct Answer
verified

A supply curve that slopes upward reflects:

Correct Answer
verified

Stagflation refers to a situation in which an economy is experiencing _ economic growth and _ inflation.

Correct Answer
verified

Which of the following would likely cause the aggregate demand curve to shift to the right?

Correct Answer
verified

A decrease in consumer confidence will cause:

Correct Answer
verified

Exam 12: Aggregatedemand and Aggregate Supply

Which of the following is a component of aggregate demand?

Correct AnswerverifiedShow Answer

Suppose the Midwest experiences a major drought, decreasing yields of corn, a major input in gasoline, and an influx of processed foods. How would this be represented in the AD/AS model?

Correct AnswerverifiedShow Answer

A supply curve that slopes upward reflects:

Correct AnswerverifiedShow Answer

Stagflation refers to a situation in which an economy is experiencing _______ economic growth and _______ inflation.

Correct AnswerverifiedShow Answer

Which of the following would likely cause the aggregate demand curve to shift to the right?

Correct AnswerverifiedShow Answer

A decrease in consumer confidence will cause:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Stagflation refers to a situation in which an economy is experiencing _ economic growth and _ inflation.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified