Which of the following would shift the aggregate demand curve to the left?
a. increases in government purchases, investment spending, autonomous consumption,
taxes or the money supply
b. decreases in government purchases, investment spending, autonomous consumption,
or the money supply
c. increases in government purchases, investment spending, autonomous consumption
or the money supply
d. decreases in government purchases, investment spending, autonomous consumption,
taxes or an increase in the money supply
e. only increases in government purchases
The labor supply curve
a. slopes upward to illustrate that more people will want to work as the real wage
increases
b. slopes upward to illustrate that changes in the real wage are directly proportional to
changes in the nominal wage
c. may slope either upward or downward, depending upon the real wage
d. slopes downward to illustrate that a decrease in the real wage decreases the number
of individuals willing to work
e. slopes downward to illustrate that the availability of workers is directly proportional
to the real wage
When real consumption expenditure is plotted against real disposable income the
resulting relationship is
a. very weak.
b. positive and very curvi-linear.
c. positive and very close to linear.
d. negative and very close to linear.
e. virtually flat.
Which of the following is a period of decreasing output that is severe and long lasting?
a. business cycle
b. expansion
c. peak
d. recession
e. depression
The supply of loanable funds curve is downward sloping.
In Figure 4-2, if the government imposes a price ceiling of $2, the result will be
A buyer’s consumer surplus on a unit of a good is its value to that buyer minus what the
buyer actually pays for it.
By making involuntary exchanges illegal,
To be considered employed, a person must have worked at least __________ hour(s)
during the previous week
a. 40
b. 20
c. 10
d. 12
e. 1
Tax collections in the United States are an example of
The Fed can determine how the money demand curve has shifted by
a. studying interest rate changes
b. looking at the number of new loans
c. studying unemployment compensation claims
d. experimenting with changes in credit conditions
e. checking the size of the federal budget deficit
If net exports decrease by $10 billion and the MPC is 0.9, what is the ultimate change in
GDP?
a. $100 billion
b. -$10 billion
c. $10 billion
d. -$100 billion
e. -$9 billion
The only requirement for short-run equilibrium is that the economy must be on the
aggregate supply curve.
Suppose Bob and Tom are writing jokes for a their new TV show. Suppose there are
two types of jokes, political jokes and jokes about celebrities. The number of jokes that
can be produced by each person in each category are listed in Figure 2-12. From this
table they should
Figure 2-12
Which of the following would shift the production function downward?
a. An improvement in technology
b. A decrease in the interest rate
c. An increase in number of workers
d. An increase in the stock of human capital
e. A decrease in the stock of physical capital