Which of the following would cause the short-run aggregate supply curve to shift to the
right?
A) an increase in the price level
B) a decrease in inflation expectations
C) a technological advance
D) an increase in interest rates
Figure 13-1
Refer to Figure 13-1. Ceteris paribus, a decrease in households’ expectations of their
future income would be represented by a movement from
A) AD1 to AD2.
B) AD2 to AD1.
C) point A to point B.
D) point B to point A.
A quota
A) makes domestic consumers worse off.
B) makes both domestic producers and consumers better off.
C) makes everyone worse off.
D) makes domestic producers worse off.
During 1970-1997, the U.S. federal government was
A) in surplus every year.
B) balanced every year.
C) in deficit every year.
D) in deficit most of those years.
High-income countries are also referred to as
A) developing countries.
B) industrial countries.
C) growing countries.
D) agrarian countries.
The Bureau of Labor Statistics would categorize a retiree who is not working as
A) employed.
B) unemployed.
C) a discouraged worker.
D) out of the labor force.
Figure 13-3
Refer to Figure 13-3. Which of the points in the above graph are possible long-run
equilibria?
A) A and B
B) A and C
C) A and D
D) B and D
As predicted by the economic growth model, countries that start with lower levels of
GDP per capita always grow faster than countries that start with higher levels of GDP
per capita.
Article Summary
Unlike in many nations, when the financial crisis hit in 2008 the Polish economy
continued to grow, but due to a current slowdown in exports and domestic demand,
Poland is expecting a large outflow of workers. Unemployment was expected to grow
to 14 percent in Poland in 2013, and according to Krystyna Iglicka, a demographer at
Lazarski University in Warsaw, “€¦Poles have always treated emigration as a way of
improving their lot.” Despite earning relatively low salaries in Western European
countries, on average just over ¬2,000 (about $2,660) a month according to the
National Bank of Poland, this is still four times more than workers would earn on
average by staying in Poland. Iglicka predicts that between 500,000 and 800,000 Poles
will emigrate from Poland over the next five years.
Source: Jan Cienski, “Poland braces for fresh exodus of workers,” Washington Post,
January 22, 2013.
Refer to the Article Summary. If, after the outflow of workers in Poland, it now takes
more capital per hour worked to get the same amount of GDP per hour worked, this
indicates ________ the per-worker production function in Poland.
A) a movement up
B) a movement down
C) an upward shift of
D) a downward shift of
A permanent tax cut would likely ________ consumption spending ________ than
would a tax rebate like the one issued in 2008.
A) increase; more
B) increase; less
C) decrease; more
D) decrease; less
Which of the following will increase investment spending in the economy, holding
everything else constant?
A) an increase in the federal government surplus
B) an increase in the budget deficit
C) an increase in consumer dissavings
D) an increase in transfer payments
If a decrease in income leads to an increase in the demand for macaroni, then macaroni
is
A) an inferior good.
B) a neutral good.
C) a necessity.
D) a normal good.
If the price level in the United States is 110, the price level is 135 in Mexico, and the
nominal exchange rate is 12.5 pesos per dollar, what is the real exchange rate from the
U.S. perspective?
A) 8.8
B) 10.2
C) 10.8
D) 11.4
Table 8-5
Consider the table above showing three stages of production of an automobile.
Refer to Table 8-5. The value added by the automobile dealer equals
A) $7,000.
B) $15,000.
C) $18,000.
D) $25,000.
Stagflation is often a result of
A) a negative supply shock.
B) a decrease in aggregate demand.
C) an increase in aggregate demand.
D) an increase in aggregate supply.