Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
56. Other things equal, appreciation of the dollar:
57. Other things equal, a reduction in personal and business taxes can be expected to:
58. Other things equal, an improvement in productivity will:
Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
Answer the question on the basis of the following information about the relationship between
input quantities and real domestic output in a hypothetical economy:
59. Refer to the above table. The level of productivity in the above economy is:
60. Refer to the above table. If the price of each input is $5, the per-unit cost of production in
the above economy is:
Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
61. Refer to the above table. Suppose that the price of each input increased from $5 to $8. The
per-unit cost of production in the above economy would:
62. The short-run aggregate supply curve represents circumstances where:
63. The economy’s long-run aggregate supply curve:
Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
64. The economy’s long-run AS curve assumes that wages and other resource prices:
65. In the above diagram, the economy’s long-run aggregate supply curve is shown by line:
Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
66. In the above diagram, the economy’s relevant aggregate demand and long-run aggregate
supply curves, respectively, are lines:
67. In the above diagram, the economy’s short-run AS curve is line ___ and its long-run AS
curve is line __.
68. The equilibrium price level and level of real output occur where:
Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
Answer the question on the basis of the following aggregate demand and supply schedules
for a hypothetical economy:
69. Refer to the above data. The equilibrium price level will be:
70. Refer to the above data. If the price level is 250 and producers supply $450 of real output:
Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
71. Refer to the above data. If the amount of real output demanded at each price level falls by
$200, the equilibrium price level and equilibrium level of real domestic output will fall to:
72. Refer to the above data. If the amount of real output demanded at each price level falls by
$200, this might have been caused by:
73. Graphically, demand-pull inflation is shown as a:
Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
74. Graphically, cost-push inflation is shown as a:
75. Graphically, the full-employment, low-inflation, rapid-growth economy of the last half of
the 1990s is depicted by a:
Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
76. Refer to the above diagrams, in which AD1 and AS1 are the “before” curves and AD2 and
AS2 are the “after” curves. A recession is depicted by:
77. Refer to the above diagrams, in which AD1 and AS1 are the “before” curves and AD2 and
AS2 are the “after” curves. Cost-push inflation is depicted by:
78. Refer to the above diagrams, in which AD1 and AS1 are the “before” curves and AD2 and
AS2 are the “after” curves. Growth, full-employment and price stability is depicted by:
Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
79. Refer to the above diagrams, in which AD1 and AS1 are the “before” curves and AD2 and
AS2 are the “after” curves. Other things equal, an increase in investment spending is depicted
by:
80. Refer to the above diagrams, in which AD1 and AS1 are the “before” curves and AD2 and
AS2 are the “after” curves. Other things equal, a decline in productivity is depicted by:
81. Refer to the above 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:
Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
82. Refer to the above 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 above 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:
84. Refer to the above 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:
Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
85. Refer to the above 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:
87. A rightward shift of the AD curve in the very steep upper part of the short-run AS curve
will:
Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
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:
90. A decrease in aggregate demand will cause a greater decline in real output the:
Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
91. In the above 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 change in
aggregate supply from AS1 to AS2 could be caused by:
Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
92. In the above 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 above diagram produce:
Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
93. Refer to the above 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:
94. Refer to the above diagram. If the aggregate supply curve shifted from AS0 to AS1, and
the aggregate demand curve remains at AD0 we could say that:
95. Refer to the above diagram. If aggregate supply is AS1 and aggregate demand is AD0,
then:
Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
96. Refer to the above diagram. A shift of the aggregate demand curve from AD1 to AD0
might be caused by a(n):
97. Refer to the above 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:
Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
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:
Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
102. In which of the following sets of circumstances can we confidently expect inflation?
Chapter 12 – Aggregate Demand and Aggregate Supply (+ Appendix)
103. Which of the above diagrams best portrays the effects of an increase in resource
productivity?
104. Which of the above diagrams best portrays the effects of a decrease in the availability of
key natural resources?
105. Which of the above diagrams best portrays the effects of an increase in foreign spending
on U.S. products?