Econ 2301 STUDY GUIDE, Chs 8 - 10
Help!
|
|
||||
|---|---|---|---|---|---|
| show | real output (Real GDP) people are willing and able to buy at different price levels, ceteris
paribus.
🗑
|
||||
| show | this person's wealth will change as the price level changes.
🗑
|
||||
| As the price level rises, ceteris paribus, people holding some of their wealth in monetary form become | show 🗑
|
||||
| Suppose consumption increases at each price level. As a result, aggregate demand __________, and the AD curve shifts __________. | show 🗑
|
||||
| show | increases; rightward
🗑
|
||||
| If consumption changes because of a change in a factor other than the price level, then the | show 🗑
|
||||
| If consumption changes because of a change in the price level, then the | show 🗑
|
||||
| Expectation of lower future prices is a | show 🗑
|
||||
| show |
🗑
|
||||
| As the interest rate rises, businesses invest __________ and the AD curve shifts to the __________. | show 🗑
|
||||
| show | depreciated; less
🗑
|
||||
| An appreciation of the U.S. dollar tends to __________ U.S. net exports and shift the U.S. AD curve to the __________. | show 🗑
|
||||
| show | increase; rightward
🗑
|
||||
| show | real output (Real GDP) producers are willing and able to sell at different price levels,
ceteris paribus.
🗑
|
||||
| An increase in the price of nonlabor inputs | show 🗑
|
||||
| An increase in the price of oil will cause | show 🗑
|
||||
| An increase in labor productivity shifts the | show 🗑
|
||||
| show | where the AD curve intersects the short-run aggregate supply (SRAS) curve.
🗑
|
||||
| show | shifts the AD curve to the left.
🗑
|
||||
| show | AD curve to the right, causing equilibrium price level to rise and equilibrium Real GDP to
increase
🗑
|
||||
| Which of the following would cause a rightward shift in the AD curve? | show 🗑
|
||||
| Ceteris paribus, Real GDP and the unemployment rate are | show 🗑
|
||||
| show | a and c
🗑
|
||||
| show | the natural unemployment rate.
🗑
|
||||
| If Real GDP is less than Natural Real GDP, the economy is in | show 🗑
|
||||
| If Real GDP is less than Natural Real GDP, then the (actual) unemployment rate is | show 🗑
|
||||
| If the natural unemployment rate is 7 percent and the current unemployment rate is 5 percent, then the economy is | show 🗑
|
||||
| show | in long-run equilibrium.
🗑
|
||||
| show | intersect to the right of Natural Real GDP.
🗑
|
||||
| Refer to Exhibit 9-1. The economy is currently producing Q1. At this level of Real GDP, the economy is in a(n) | show 🗑
|
||||
| show | inflationary gap.
🗑
|
||||
| In a "self-regulating" economy, inflationary and recessionary gaps | show 🗑
|
||||
| show | the constraints of finite resources and the current state of technology.
🗑
|
||||
| Suppose the economy is self-regulating and the (actual) unemployment rate is less than the natural unemployment rate. This means that the economy is producing a level of output | show 🗑
|
||||
| show | a and d
🗑
|
||||
| show | vertical.
🗑
|
||||
| show | belief, noninterference
🗑
|
||||
| show | c and d
🗑
|
||||
| show | a recessionary gap producing less than Natural Real GDP.
🗑
|
||||
| show | It means the economy can remove itself from recessionary and inflationary gaps and
produce at Natural Real GDP
🗑
|
||||
| show | wages and prices will rise.
🗑
|
||||
| show | interest rates must be flexible in the credit market.
🗑
|
||||
| Which of the following is not consistent with a self-regulating economy? | show 🗑
|
||||
| show | Wages are flexible if the economy is self-regulating.
🗑
|
||||
| show | in a recessionary gap.
🗑
|
||||
| show | falling interest rate.
🗑
|
||||
| show | supply creates its own demand.
🗑
|
||||
| show | When a person produces one good, he or she plans to demand other goods.
🗑
|
||||
| If total production is greater than total expenditures, | show 🗑
|
||||
| show | total expenditures are greater than total production.
🗑
|
||||
| show | all of the above
🗑
|
||||
| show | away from; can
🗑
|
||||
| According to the efficiency wage model, firms tend to pay workers | show 🗑
|
||||
| show | Smith is likely to be a Keynesian economist and Jones is likely to be a classical economist.
🗑
|
||||
| Keynesian economics was developed during the | show 🗑
|
||||
| Autonomous consumption is | show 🗑
|
||||
| Keynes believed that saving is | show 🗑
|
||||
| show | monopolistic elements in the economy prevent immediate and sharp price declines in
response to falling demand.
🗑
|
||||
| If income rises from $1,000 to $1,400 and consumption rises from $800 to $1,175, the marginal propensity to consume is __________ percent. | show 🗑
|
||||
| According to the Keynesian consumption function, an increase in disposable income will result in | show 🗑
|
||||
| show | equal to one.
🗑
|
||||
| If autonomous consumption rises by $20 and, as a result, Real GDP rises by $200, then the multiplier is | show 🗑
|
||||
| show | a and c
🗑
|
||||
| When the MPC = 0.9, the multiplier is | show 🗑
|
||||
| When the MPC = 0.6, the multiplier is | show 🗑
|
||||
| show | $4.0 billion.
🗑
|
||||
| show | only over many months, perhaps even years.
🗑
|
||||
| The multiplier process following a drop in autonomous spending is | show 🗑
|
||||
| show | It means spending in the economy is too low to bring about full employment.
🗑
|
||||
| For Say's law to hold in a money economy, | show 🗑
|
||||
| Which of the following is good evidence against the classical view of Say's law? | show 🗑
|
||||
| show | $250 billion
🗑
|
Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
Taysia
Popular Economics sets