An increase in the price of a nonlabor input such as oil will cause
a. a movement down the SRAS curve.
b. a movement up the SRAS curve.
c. a leftward shift in the SRAS curve.
d. a rightward shift in the SRAS curve.
e. no change regarding the SRAS curve.
Exhibit 9-1
If the economy is self-regulating, the price level is
a. lower in short-run equilibrium than in long-run equilibrium.
b. lower in long-run equilibrium than in short-run equilibrium.
c. higher in long-run equilibrium than in short-run equilibrium.
d. lower when the economy is in a recessionary gap than when it is in long-run
equilibrium.
e. a and c
If Americans demand goods produced in Mexico, it leads to a demand for Mexican
pesos and a supply of U.S. dollars on the foreign exchange market.
a. True
b. False
In all cases, macroeconomics deals with
a. what is.
b. what should be.
c. relatively small units in the economy.
d. the entire economy.
A person who opposes the deliberate use of fiscal and monetary policies is called a(n)
a. Keynesian.
b. fiscalist.
c. nonactivist.
d. activist.
Exhibit 10-2
Which of the following is correct about point M?
a. TE is $4,500 billion and TP is only $1,500 billion.
b. TP is $4,500 billion and TE is only $1,500 billion.
c. TE is $7,500 and TP is only $5,500 billion.
d. TP is only $7,500 billion and TE is only $5,500 billion.
e. TE is $3,000 billion and TP is only $1,500 billion.
The sale of goods abroad at a price below their cost and below the price charged in the
domestic market is called
a. priming.
b. coping.
c. invading.
d. dumping.
Which of the following questions is most likely to bring forth the same answer from
each of 100 economists:
a. What role should government play in the economy?
b. How does the Fed go about changing the money supply?
c. Is it better to use monetary or fiscal policy to stabilize the economy at the current
time?
d. What are the effects on the economy of expansionary fiscal policy?
e. b and d
In a simple majority vote on a public project,
a. the project will never be undertaken if the costs exceed the benefits.
b. the project may be undertaken even though the total costs exceed the total benefits.
c. the intensity of individual preferences is taken into account.
d. the project will always be undertaken if the total benefits exceed the total costs.
Exhibit 37-1
where the higher the number, the better the position for the person to whom the number
is connected.Jaden and Karen have entered into an agreement and are currently in box
1.There is no enforcer to their agreement.Jaden and Karen are likely to
a. remain in box 1.
b. move to box 2, because this box is better for Jaden.
c. move to box 3, because this box is better for Karen.
d. move to box 4.
e. There is not enough information to answer the question.
Exhibit 1-3
According to the data provided in this table, what is the slope of the line between points
C and D (if these data were graphed with X on the horizontal axis and Y on the vertical
axis)?
a. -0.40
b. -2.50
c. 0.40
d. 2.50
e. none of the above
The monetary policy most likely to be favored by monetarists is
a. a constant (nongrowing) money supply.
b. frequent discretionary changes in the money growth rate.
c. a constant and slow rate of monetary growth.
d. vigorous monetary expansion during recessions.
e. a steadily increasing rate of monetary growth.
The minimum wage is a good example of a price floor.
a. True
b. False