Because we have full employment at the level of potential output,
A) aggregate demand is downward sloping.
B) aggregate demand is upward sloping.
C) the long-run aggregate supply curve is upward sloping at potential output.
D) the long-run aggregate supply curve is vertical at potential output .
72) Suppose a country has no trade with other countries and people can borrow as much money as they want at the current interest rate. A decrease in the price level will generate
A) an increase in quantity demanded because of the real-balance effect.
B) an increase in quantity demanded because of the open-economy effect and the indirect effect.
C) an increase in quantity demanded because the real-balance effect will be stronger than the indirect effect and the open-economy effect.
D) an increase in quantity demanded because the indirect effect will be stronger than the real-balance effect.
73) A reduction in the quantity demanded of interest-rate-sensitive goods as a result of an increase in the price level, if other factors are held constant, is known as
A) the interest rate effect.
B) the real-balance effect.
C) the open-economy effect.an outward shift of the aggregate demand curve.
D) the open-money balance effect.
74) The horizontal axis for an aggregate demand curve measures
A) real GDP per year.
B) nominal GDP per year.
C) the price level.
D) real income.
75) An individual holds $10 000 in an interest-earning checking account, and the overall price level rises significantly. Other things constant, we would expect
A) the individual's real wealth to decrease and consumption to diminish.
B) the individual's stock of real wealth to decrease but real national income to increase.
C) no change in the individual's real wealth but a decline in real national product.
D) we cannot be sure since we do not know the magnitude of the interest earned relative to the increase in price level.
76) When the Harper government decreases the level of taxes in the economy, this has the effect of
A) increasing AD.
B) decreasing AD.
C) increasing AS in the long run.
D) decreasing AS in the long run.
77) Lower interest rates
A) increase the quantity of goods and services demanded because they decrease the cost of borrowing money.
B) increase the quantity of goods and services demanded because they increase the income of bankers and other creditors.
C) decrease the quantity of goods and services demanded because they decrease the incomes of all people in the economy.
D) decrease the quantity of goods and services demanded because they raise the costs of building new plants and equipment.
78) When the real interest rate rises,
A) AD shifts left..
B) the long-run aggregate supply curve shifts to the right.
C) the multiplier stays the same.
D) AD shifts right.
79) Which of the following statements is FALSE?
A) The aggregate demand curve is downward sloping.
B) The long run aggregate demand curve is upward sloping.
C) The short-run aggregate supply curve is upward sloping.
D) The long-run aggregate supply curve is vertical.
80) Which of the following statements best categorizes the LRAS curve.
A) Vertical at the current level of real output.
B) Depends on the position of the AD curve.
C) The full-employment and full adjustment level of real output of goods and services in the economy.
D) Depends on the aggregate price level in the economy.
You operate a store that’s heated by an oil furnace supplying 30 kWh of heat from each gallon of oil. You’re considering switching to a heat-pump system. Oil costs $1.75/...Jul 08 2020
Question 5 (2 points) Find the slope of the tangent line to the curve f(x) = 6 + 3/x at x=9. Note that we are not asking for the equation, just the slope. Round to two de...May 13 2021
19.65 is the final optionWhat is the IRR of the following set of cash flows? Year Cash Flow -$10,414 3,500 6,800 5,000 Multiple Choice 21.09% 21.71% 20.27% 20.68%Aug 11 2020
Choose the correct answer.Everyone thought the new manager would be (he, himJun 18 2021
DEFINITION OF CAM AND TYPES OF CAM.(IN ATTACHED FILES FOR SOLUTIONS). >Jun 22 2020
It is late May and you need to purchase professional clothing for an internship. Although expensive, you know that Lord & Taylor or Bloomindales will carry the appropriat...Aug 22 2020
If j is a transient state prove that for all iAug 05 2020
What is the chemical formula of mercury (II) nitride?May 19 2021
Khloe Company imports gift items from overseas and sells them to gift shops and department stores throughout the United States. Khloe Company provided the following infor...Apr 01 2020
Linden Company manufactures and sells a single product. Cost data for the product follow: Variable costs per unit: Direct materials. . . . . . . . . . . . . . . . . . . ....Apr 25 2020