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following?
186.
In the Great Recession of 2007–2009, stock market values shrank, causing a reverse
187.
Which of the following events would most likely reduce aggregate demand?
188.
The expenditure multiplier concept of the aggregate expenditures model
189.
When the excess capacity of business expands unintentionally, aggregate
190.
A decrease in government spending will cause a(n)
32-103
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written consent of McGraw-Hill Education.
Topi c: Changes in Aggregate Demand
191.
If the dollar appreciates in value relative to foreign currencies,
192.
If the national incomes of our trading partners increase, then our
193.
Changes in the national incomes of our trading partners would directly impact our
32-104
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Test Bank: II
Topi c: Changes in Aggregate Demand
194.
If the dollar depreciates in value relative to foreign currencies, then aggregate
195.
When the dollar appreciates relative to foreign currencies, it means that
196.
If the dollar appreciates relative to foreign currencies, then
32-105
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Learning Objective: 32-02 Explain the factors that cause changes shifts in AD.
Test Bank: II
Topi c: Changes in Aggregate Demand
197.
Which of the following will not tend to happen if the U.S. dollar depreciates against the
euro?
198.
When national income in other nations decreases, aggregate demand in our economy
199.
Changes in which of the following would not shift the aggregate demand curve?
32-106
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Blooms: Understand
Di ffic ulty: 02 Medium
Learning Objective: 32-02 Explain the factors that cause changes shifts in AD.
Test Bank: II
Topi c: Changes in Aggregate Demand
200.
Which combination of factors would most likely increase aggregate demand?
201.
Refer to the graph. Which of the following factors will shift AD1 to AD2?
32-107
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
B.
an increase in real interest rates
C.
an increase in national incomes abroad
D. a decrease in the value of financial assets
202.
Refer to the graph. Which of the following factors will shift AD1 to AD3?
32-108
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Topi c: Changes in Aggregate Demand
Type: Graph
203.
Refer to the graph. Which of the following changes will shift AD1 to AD2?
204.
A sharp rise in the real value of stock prices, which is independent of a change in the
price level, would best be an example of
32-109
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written consent of McGraw-Hill Education.
D.
a change in the real value of consumer wealth.
205.
The real-balance effect pertains to the effect of
206. 1.
Real-Balances Effect
2.
Household Expectations
3.
Interest-Rate Effect
4.
Personal Income Tax Rates
5.
Profit Expectations
6.
National Incomes Abroad
7.
Government Spending
8.
Foreign Purchases Effect
9.
Exchange Rates
10.
Degree of Excess Capacity
Answer the question based on the accompanying list of factors that are related to the
aggregate demand curve. Which of the factors best explain the downward slope of aggregate
demand curve?
207.
1.
Real-Balances Effect
2.
Household Expectations
3.
Interest-Rate Effect
4.
Personal Income Tax Rates
5.
Profit Expectations
6.
National Incomes Abroad
7.
Government Spending
8.
Foreign Purchases Effect
9.
Exchange Rates
10.
Degree of Excess Capacity
Answer the question based on the accompanying list of factors that are related to the
aggregate demand curve. Changes in which two of the factors would most likely cause a
shift
in aggregate demand due to a change in consumer spending?
32-111
208.
1.
Real-Balances Effect
2.
Household Expectations
3.
Interest-Rate Effect
4.
Personal Income Tax Rates
5.
Profit Expectations
6.
National Incomes Abroad
7.
Government Spending
8.
Foreign Purchases Effect
9.
Exchange Rates
10.
Degree of Excess Capacity
Answer the question based on the accompanying list of factors that are related to the
aggregate demand curve. Investment spending would most likely be influenced by changes
in
209.
1.
Real-Balances Effect
2.
Household Expectations
3.
Interest-Rate Effect
4.
Personal Income Tax Rates
5.
Profit Expectations
6.
National Incomes Abroad
7.
Government Spending
8.
Foreign Purchases Effect
9.
Exchange Rates
10.
Degree of Excess Capacity
Answer the question based on the accompanying list of factors that are related to the
aggregate demand curve. A change in net export spending would most likely be caused by
changes in
210.
An aggregate supply curve represents the relationship between the
211.
The labels for the axes of an aggregate supply curve should be
32-113
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written consent of McGraw-Hill Education.
Dif f i c ulty : 01 Easy
Learning Objective: 32-03 Define aggregate supply AS and explain how it differs in the
immediate short run, the short run, and the long run.
Test Bank: II
Topi c: Aggregate Supply
212.
The slope of the immediate-short-run aggregate supply curve is based on the
assumption that
213.
The immediate-short-run aggregate supply curve is
214.
The upward slope of the short-run aggregate supply curve is based on the assumption
that
32-114
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written consent of McGraw-Hill Education.
C.
prices of outputs do not respond to price level changes.
D.
prices of inputs are flexible, while prices of outputs are fixed.
215.
The short-run aggregate supply curve shows the
216.
The short-run aggregate supply curve
217.
The long-run aggregate supply curve is
218.
The long-run aggregate supply analysis assumes that
219.
The version of aggregate supply that allows for changes in both product prices and
resource prices is the
32-116
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Learning Objective: 32-03 Define aggregate supply AS and explain how it differs in the
immediate short run, the short run, and the long run.
Test Bank: II
Topi c: Aggregate Supply
220.
The short-run version of aggregate supply assumes that
221.
In the accompanying graph, the long-run aggregate supply curve would be represented by
which line?
222.
In the accompanying graph, which line might represent an immediate-short-run aggregate
supply curve?
32-118
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
AACSB: Knowledge Application
Blooms: Remember
Dif f i c ulty : 01 Easy
Learning Objective: 32-03 Define aggregate supply AS and explain how it differs in the
immediate short run, the short run, and the long run.
Test Bank: II
Topi c: Aggregate Supply
Type: Graph
223.
In the accompanying graph, which line might represent an aggregate demand curve?
32-119
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Type: Graph
224.
A fall in the prices of inputs will shift the aggregate
225.
Which would most likely shift the aggregate supply curve? A change in the prices of
226.
A fall in labor costs will cause aggregate
32-120
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Test Bank: II
Topi c: Changes in Aggregate Supply
227.
An increase in productivity will
228.
Which would most likely increase aggregate supply?
229.
If the price of crude oil decreased, then this would most likely
