Which of the following could increase unemployment and inflation simultaneously?
A) an increase in oil prices
B) expansionary monetary policy
C) contractionary monetary policy
D) a decrease in the real wage
In the dynamic aggregated demand and aggregate supply model, inflation occurs if
A) AD shifts faster than SRAS.
B) AD shifts slower than SRAS.
C) SRAS shifts faster than AD.
D) LRAS shifts faster than AD.
Because the value of the euro is determined by factors that affect the entire euro zone,
during the recession of 2007-2009, individual countries using the euro
A) were unable to have their exchange rates depreciate.
B) were more insulated from unemployment increases than most countries.
C) experienced a greater increase in exports than did most countries.
D) were able to use expansionary monetary policy to lessen the impact of the recession.
Following a tax cut by government, domestic investment will ________ and net exports
will ________.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
Although the pegged exchange rate between the yuan and the dollar has undervalued
the yuan, China has been reluctant to abandon the peg for fear that abandoning the peg
would
A) increase exports and increase the current account deficit.
B) reduce capital inflows.
C) reduce exports and reduce economic growth.
D) increase Chinese holdings of dollars.
Table 9-9
Refer to Table 9-9. Suppose that the data in the table above reflect the price levels in
the economy. Given that data, we can say that the cost of living rose by ________
between 2012 and 2013?
A) 2%
B) 5%
C) 8%
D) 11%
E) 13%
Suppose that nominal GDP in 2013 was less than real GDP in 2013. Given this
information, we know for certain that
A) the price level in 2013 was greater than the price level in the base year.
B) the price level in 2013 was less than the price level in the base year.
C) real GDP in 2013 was less than real GDP in the base year.
D) real GDP in 2013 was greater than real GDP in the base year.
Assume weak growth in aggregate demand keeps the economy below potential GDP, so
unemployment rises but inflation falls. This explains the ________ slope of the
short-run Phillips curve.
A) positive
B) negative
C) zero
D) infinite
A tax imposed by a government on imports of a good into a country is called a
A) tariff.
B) quota.
C) value added tax.
D) sales tax.
Which of the following would increase disposable personal income?
A) a decrease in transfer payments received
B) a decrease in taxes paid
C) a decrease in personal income
D) All of the above would increase disposable income.
On the long-run aggregate supply curve,
A) an increase in the price level increases the aggregate quantity of GDP supplied.
B) an increase in the price level reduces the aggregate quantity of GDP supplied.
C) an increase in the price level has no effect on the aggregate quantity of GDP
supplied.
D) an increase in the price level increases the level of potential GDP.
________ tended to increase spending on health care in the United States.
A) The aging of the U.S. population, rather than advances in medical technology, has
B) Advances in medical technology, rather than the aging of the U.S. population, has
C) The aging of the U.S. population, as well as advances in medical technology, have
D) Neither the aging of the U.S. population, nor advances in medical technology, have