978-1259723223 Test Bank TBChap032 Part 3

32–41

81.

Refer to the diagrams, in which AD1 and AS1 are the “before” curves and AD2 and AS2 are

the “after” curves. Other things equal, a decline in net exports caused by a change in

incomes abroad is depicted by

82.

Refer to the diagrams, in which AD1 and AS1 are the “before” curves and AD2 and AS2 are

the “after” curves. Other things equal, a decline in net exports caused by the foreign

purchases effect of a price-level increase is depicted by the

83.

Refer to the diagrams, in which AD1 and AS1 are the “before” curves and AD2 and AS2 are

the “after” curves. Other things equal, a decline in investment spending caused by the

interest-rate effect of a price-level increase is depicted by the

32–43

written consent of McGraw-Hill Education.

Blooms: Understand

Diffic ult y: 02 Medium

Learning Objective: 32-06 Describe how the AD-AS model explains periods of demand-

pull inflation, cost-push inflation, and recession.

Test Bank: I

Topic: Changes in Equilibrium

Type: Graph

84.

Refer to the diagrams, in which AD1 and AS1 are the “before” curves and AD2 and AS2 are

the “after” curves. Other things equal, a decrease in resource prices is depicted by

85.

Refer to the diagrams, in which AD1 and AS1 are the “before” curves and AD2 and AS2 are

the “after” curves. Other things equal, inflation is absent in

86.

If aggregate demand decreases, and, as a result, real output and employment decline but

the price level remains unchanged, it is most likely that

32–45

written consent of McGraw-Hill Education.

pull inflation, cost-push inflation, and recession.

Test Bank: I

Topic: Changes in Equilibrium

87.

A rightward shift of the AD curve in the very steep upper part of the short–run AS curve

will

88.

A rightward shift of the AD curve in the very flat part of the short–run AS curve will

89.

Given a fixed upsloping AS curve, a rightward shift of the AD curve will

32–46

written consent of McGraw-Hill Education.

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

Blooms: Understand

Diffic ult y: 02 Medium

Learning Objective: 32-06 Describe how the AD-AS model explains periods of demand-

pull inflation, cost-push inflation, and recession.

Test Bank: I

Topic: Changes in Equilibrium

90.

A decrease in aggregate demand will cause a greater decline in real output the

91.

In the figure, AD1 and AS1 represent the original aggregate supply and demand curves, and

32–47

AD2 and AS2 show the new aggregate demand and supply curves. The change in

aggregate

supply from AS1 to AS2 could be caused by

92.

In the figure, AD1 and AS1 represent the original aggregate supply and demand curves, and

AD2 and AS2 show the new aggregate demand and supply curves. The changes in

aggregate demand and supply in the diagram produce

32–48

written consent of McGraw-Hill Education.

A. a higher price level.

B.

an expansion of real output and a stable price level.

C.

an expansion of real output and a higher price level.

D.

a decline in real output and a stable price level.

93.

Refer to the diagram. If the initial aggregate demand and supply curves are AD0 and AS0,

the equilibrium price level and level of real domestic output will be

32–49

written consent of McGraw-Hill Education.

Diffic ult y: 02 Medium

Learning Objective: 32-05 Discuss how AD and AS determine an economys equilibrium

price level and level of real GDP.

Test Bank: I

Topic: Equilibrium in the AD–AS Model

Type: Graph

94.

Refer to the diagram. If the aggregate supply curve shifted from AS0 to AS1 and the

aggregate demand curve remains at AD0, we could say that

32–50

written consent of McGraw-Hill Education.

Type: Graph

95.

Refer to the diagram. If aggregate supply is AS1 and aggregate demand is AD0, then

96.

Refer to the diagram. A shift of the aggregate demand curve from AD1 to AD0 might be

caused by a(n)

97.

Refer to the diagram. Other things equal, a shift of the aggregate supply curve from AS0 to

AS1 might be caused by a(n)

98.

If aggregate demand increases and aggregate supply decreases, the price level

32–53

written consent of McGraw-Hill Education.

AACSB: Knowledge Application

Accessibility: Keyboard Navigation

Blooms: Understand

Diffic ult y: 02 Medium

Learning Objective: 32-06 Describe how the AD-AS model explains periods of demand-

pull inflation, cost-push inflation, and recession.

Test Bank: I

Topic: Changes in Equilibrium

99.

If the dollar price of foreign currencies falls (that is, the dollar appreciates), we would

expect

100.

An increase in input productivity will

101.

If personal taxes were decreased and resource productivity increased simultaneously,

the equilibrium

102.

In which of the following sets of circumstances can we confidently expect inflation?

103.

Which of the diagrams for the U.S. economy best portrays the effects of an increase in

resource productivity?

104.

Which of the diagrams for the U.S. economy best portrays the effects of a decrease in the

availability of key natural resources?

105.

Which of the diagrams for the U.S. economy best portrays the effects of an increase in

foreign spending on U.S. products?

106.

Which of the diagrams for the U.S. economy best portrays an improvement in expected rates

of return on investment?

107.

Which of the diagrams for the U.S. economy best portrays the effects of declines in the

incomes of U.S. trading partners?

108.

Which of the diagrams for the U.S. economy best portrays the effects of declines in the

prices of imported resources?