?????? Question 1 2.5 ??/ 2.5 points The __________ is the amoun

??????
Question 1

2.5 ??/ 2.5 points
The __________ is the amount by which a change in autonomous expenditures is multiplied in order to determine the change in equilibrium expenditure that it generates.
Question options:
??

marginal tax rate
?

marginal multiplier
?

expenditure reducer
?

expenditure ??multiplier
?
Question 2

2.5 ??/ 2.5 points
???????
When the Federal Reserve changes the quantity of money and the interest rate, it influences aggregate demand by using __________.
Question options:
??

the world economy
?

consumer expectations
?

monetary policy
?

fiscal policy
?
Question 3

2.5 ??/ 2.5 points
???????
The change in equilibrium expenditure also equals the change in __________.
Question options:
??

the potential GDP
?

the real GDP
?

income taxes
?

interest rates
?
Question 4

0 ??/ 2.5 points
???????
What represents the relationship between the quantity of real GDP supplied and the price level when all other influences on production plans remain the same?
Question options:
??

aggregate demand
?

aggregate supply
?

the money wage rate
?

the money price index
?
Question 5

2.5 ??/ 2.5 points
???????
When the real GDP increases, disposable income and consumption expenditure __________.
Question options:
??

do not change
?

become inverted
?

decrease
?

increase
?
Question 6

2.5 ??/ 2.5 points
???????
All other things remaining the same, the lower the price level, the __________ the quantity of real GDP demanded.
Question options:
??

smaller
?

greater
?

more constant
?

less constant
?
Question 7

2.5 ??/ 2.5 points
???????
When the price level increases, the real interest rate __________.
Question options:
??

is not affected
?

falls
?

rises
?

will rise or fall depending on demand
?
Question 8

2.5 ??/ 2.5 points
???????
If the price level from the GDP price index falls, what happens to the quantity of real GDP supplied?
Question options:
??

it remains constant
?

it increases
?

it decreases
?

it barely changes
?
Question 9

2.5 ??/ 2.5 points
???????
What represents the relationship between the quantity of real GDP demanded and the price level when all other influences on expenditure plans remain the same?
Question options:
??

aggregate demand
?

aggregate supply
?

the money wage rate
?

the money price index
?
Question 10

2.5 ??/ 2.5 points
???????
All other things remaining the same, the higher the price level, the __________ the quantity of real GDP supplied.
Question options:
??

smaller
?

greater
?

more constant
?

less constant
?
Question 11

2.5 ??/ 2.5 points
???????
What are the two main influences that the world economy has on aggregate demand?
Question options:
??

foreign exchange ??rate and foreign income
?

foreign investments and foreign profit
?

revenues from overseas and foreign exchange rate
?

foreign expenditures and international trade
?
Question 12

2.5 ??/ 2.5 points
???????
Which of the following would cause an increase in aggregate demand in the short run?
Question options:
??

an increase in the ??supply of money
?

a decrease in the price level
?

an increase in taxes
?

a crop failure
?
Question 13

2.5 ??/ 2.5 points
???????
The marginal __________ is the fraction of a change in real GDP that is paid in income tax.
Question options:
??

tax rate
?

income
?

GDP
?

tax revenue
?
Question 14

2.5 ??/ 2.5 points
???????
__________ occurs when aggregate planned expenditure equals real GDP.
Question options:
??

Price-fixing
?

Stable economic leveling
?

Unplanned inventory change
?

Equilibrium ??expenditure
?
Question 15

2.5 ??/ 2.5 points
???????
Which of the following does NOT decrease aggregate demand in the United States?
Question options:
??

a decrease in the ??price of oil
?

a decrease in GDP in Germany
?

a decrease in government spending
?

a decrease in the supply of money
?
Question 16

2.5 ??/ 2.5 points
???????
How does an increase in potential GDP affect aggregate supply?
Question options:
??

It decreases aggregate supply.
?

It increases ??aggregate supply.
?

It barely has any effect.
?

Since it applies to an ??imaginary?? market, it does not ??affect aggregate supply.
?
Question 17

2.5 ??/ 2.5 points
???????
To determine the equilibrium price level and equilibrium level of real GDP, the aggregate demand and aggregate supply must __________.
Question options:
??

be considered separately
?

intersect
?

be disregarded
?

be considered as a multiplier
?
Question 18

2.5 ??/ 2.5 points
???????
The __________ curve summarizes the relationship between aggregate planned expenditure and the real GDP.
Question options:
??

AES
?

AE
?

AD
?

APE
?
Question 19

2.5 ??/ 2.5 points
???????
A rise in the price level __________ the buying power of money.
Question options:
??

does not affect
?

increases
?

decreases
?

inverts
?
Question 20

2.5 ??/ 2.5 points
???????
What is the total amount of final goods and service produced in a country that people, businesses, governments, and foreigners plan to buy?
Question options:
??

the supply-demand model
?

the quantity of real GDP supplied
?

the quantity of potential GDP
?

the quantity of real ??GDP demanded
?
Lesson ??7
???
Question 21

0 ??/ 2.5 points
Since the long-run Phillips curve is vertical at the natural unemployment rate, what type of trade-off is there between employment and inflation?
Question options:
??

There is no ??trade-off between employment and inflation.
?

There ??is a constant trade-off between employment and inflation.
?

There ??is a linear trade-off between employment and inflation.
?

Employment ??and inflation are indirectly proportional (the one goes up, the other goes ??down..
?
Question 22

2.5 ??/ 2.5 points
???????
In the short run, increases in the money supply increase the level of output because __________.
Question options:
??

prices and wages are ??sticky
?

prices and wages are flexible
?

interest rates are sticky
?

demand is fixed
?
Question 23

2.5 ??/ 2.5 points
???????
Say??s law from a classical economic perspective __________.
Question options:
??

states that supply creates its own demand
?

explains the classical idea that the value of GDP will ??equal the demand for goods and services
?

supports economists belief that neither surplus nor ??shortage would ever exist when production and demand are equal for goods and ??services
?

all of the above
?
Question 24

2.5 ??/ 2.5 points
???????
What policy action by the Fed describes an unexpected rise in interest rates and deceleration in money growth in order to slow inflation at the cost of recession?
Question options:
??

rational reduction
?

surprise inflation ??reduction
?

credible announced inflation reduction
?

statistical model of reduction
?
Question 25

2.5 ??/ 2.5 points
???????
Classical economics refers to a body of work initially developed by __________.
Question options:
??

Keynes
?

Malthus
?

Say
?

Smith
?
Question 26

2.5 ??/ 2.5 points
???????
To lower the expected inflation rate, the Fed must take actions that will __________ the actual inflation rate.
Question options:
??

decelerate
?

accelerate
?

increase
?

decrease
?
Question 27

2.5 ??/ 2.5 points
???????
In __________, monetary policy can change the level of output.
Question options:
??

the long run only
?

both the short run and the long run
?

neither the short run nor the long run
?

the short run only
?
Question 28

2.5 ??/ 2.5 points
???????
What is the difference between how GDP is determined in the short run and how it is determined in the long run?
Question options:
??

In the short run, ??GDP is determined by current demand for goods and services in the economy. In ??the long run, GDP is determined by supply of labor, the stock of capital and ??technological progress.
?

In the short run, GDP is determined by future demand for ??goods and services in the economy. In the long run, GDP is determined by ??supply of labor, the stock of capital and technological progress.
?

In the long run, GDP is determined by current demand for ??goods and services in the economy. In the short run, GDP is determined by ??supply of labor, the stock of capital and technological progress.
?

In the long run, GDP is determined by future demand for ??goods and services in the economy. In the short run, GDP is determined by ??supply of labor, the stock of capital and technological progress.
?
Question 29

2.5 ??/ 2.5 points
???????
If the natural unemployment rate increases, the short-term Phillips curve __________ and the long-run Phillips curve __________.
Question options:
??

shifts rightward; ??shifts rightward
?

shifts leftward; shifts leftward
?

shifts rightward; remains the same
?

shifts leftward; remains the same
?
Question 30

2.5 ??/ 2.5 points
???????
A decrease in aggregate demand that brings a movement down along the aggregate supply curve lowers the price level and __________ real GDP.
Question options:
??

does not affect
?

decreases
?

increases
?

varies with
?
Question 31

2.5 ??/ 2.5 points
???????
What policy action by the Fed describes when people believe that the Fed will lower the inflation rate, and the expected inflation rate falls in order to slow the inflation rate without any accompanying loss of output or increase in unemployment?
Question options:
??

rational reduction
?

surprise inflation reduction
?

credible announced ??inflation reduction
?

statistical model of reduction
?
Question 32

2.5 ??/ 2.5 points
???????
What is the proposition that when the inflation rate changes, the unemployment rate changes temporarily and then turns to the natural unemployment rate?
Question options:
??

the trade-off theory
?

the natural rate ??hypothesis
?

Okun??s law
?

Phillip??s monetary policy
?
Question 33

2.5 ??/ 2.5 points
???????
The doctrine that states that "supply creates its own demand" is called __________ law.
Question options:
??

Keynes’s
?

Smith’s
?

Say’s
?

Malthus’s
?
Question 34

0 ??/ 2.5 points
???????
How does change in the expected inflation rate affect the short-run tradeoff between inflation and unemployment?
Question options:
??

Immediately, because the money wage rate is sensitive to ??change in the expected inflation rate.
?

Immediately, because unemployment and job production ??respond quickly to change in the expected inflation rate.
?

Gradually, because the money wage rate responds only ??gradually to change in the expected inflation rate.
?

Gradually, because ??the natural unemployment rate rarely changes.
?
Question 35

2.5 ??/ 2.5 points
???????
Suppose that the unemployment rate is __________ the natural rate. We would expect prices to fall, money demand to fall, interest rates to fall, and total demand to __________.
Question options:
??

above; rise
?

above; fall
?

below; rise
?

below; fall
?
Question 36

2.5 ??/ 2.5 points
???????
In the long run, a decrease in the money supply __________.
Question options:
??

has no effect on ??real interest rates, investment, or output
?

increases real interest rates, decreases investment, and ??decreases output
?

increases real interest rates, increases investment, and ??decreases output
?

decreases real interest rates, decreases investment, and ??decreases output
?
Question 37

2.5 ??/ 2.5 points
???????
The Keynesian view that demand could fall short of production is more likely to hold true if __________.
Question options:
??

wages and prices are fully flexible
?

prices, but not wages, are fully flexible
?

wages and prices are ??not fully flexible
?

wages, but not prices, are fully flexible
?
Question 38

2.5 ??/ 2.5 points
???????
The trade-off between inflation and unemployment occurs when a lower unemployment rate brings a __________.
Question options:
??

lower inflation rate
?

higher inflation ??rate
?

lower aggregate supply
?

higher aggregate supply
?
Question 39

2.5 ??/ 2.5 points
???????
The short-run Phillips curve is another way at looking at the __________.
Question options:
??

equilibrium expenditure
?

AD curve
?

aggregate supply ??(AS. curve
?

potential GDP
?
Question 40

2.5 ??/ 2.5 points
???????
Keynes expressed doubts that that the economy would __________.
Question options:
??

ever return to full-employment
?

ever move away from full-employment
?

recover from a major ??recession without active policy
?

recover from the effects of higher prices

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