Filters
Question type
Study Flashcards

According to classical macroeconomic theory,changes in the money supply change nominal but not real variables.

A) True
B) False

Correct Answer

verifed

verified

The primary purpose of the aggregate demand and aggregate supply model is to demonstrate the classical dichotomy.

A) True
B) False

Correct Answer

verifed

verified

If the central bank increased the money supply in response to a decrease in short-run aggregate supply,unemployment would return towards its natural rate,but prices would rise even more.

A) True
B) False

Correct Answer

verifed

verified

Increased output and prices in the United States in the early 1940s were mostly the result of increased government expenditures.

A) True
B) False

Correct Answer

verifed

verified

Aggregate demand shifts to the left if the money supply increases.

A) True
B) False

Correct Answer

verifed

verified

Recessions occur at irregular intervals and are almost impossible to predict with much accuracy.

A) True
B) False

Correct Answer

verifed

verified

A decrease in the money supply causes the interest rate to rise so that investment falls.

A) True
B) False

Correct Answer

verifed

verified

The effect of a change in the value of the dollar in the foreign exchange market due to a change in the price level helps explain the slope of aggregate demand,but does not shift it.The effects of a change in the value of the dollar in the foreign exchange market due to speculation is shown by shifting the aggregate demand curve.

A) True
B) False

Correct Answer

verifed

verified

Increased uncertainty and pessimism about the future of the economy lead firms to desire less investment spending which shifts the aggregate-demand curve to the left.

A) True
B) False

Correct Answer

verifed

verified

The only way to rationalize an upward slope for the short-run aggregate-supply curve is to argue that wages are sticky in the short run.

A) True
B) False

Correct Answer

verifed

verified

If not all prices adjust instantly to changing economic circumstances,an unexpected fall in the price level leaves some firms with higher-than-desired prices,and these higher-than-desired prices depress sales and induce firms to reduce the quantity of goods and services they produce.

A) True
B) False

Correct Answer

verifed

verified

True

A decrease in the price level makes consumers feel wealthier,so they purchase more.This logic helps explain why the aggregate demand curve slopes downward.

A) True
B) False

Correct Answer

verifed

verified

Because economists understand what things change GDP,they can predict recessions with a fair amount of accuracy.

A) True
B) False

Correct Answer

verifed

verified

Most economist agree that money changes real GDP in both the short and long run.

A) True
B) False

Correct Answer

verifed

verified

In response to a decrease in output,the economy would revert to its original level of prices and output whether the decrease in output was caused by a decrease in aggregate demand or a decrease in short-run aggregate supply.

A) True
B) False

Correct Answer

verifed

verified

The recessions associated with the business cycle come at regular intervals.

A) True
B) False

Correct Answer

verifed

verified

False

A change in the supply of labor,all else remaining the same,will shift the short-run aggregate-supply curve.

A) True
B) False

Correct Answer

verifed

verified

All explanations for the upward slope of the short-run aggregate supply curve suppose that the quantity of output supplied increases when the actual price level exceeds the expected price level.

A) True
B) False

Correct Answer

verifed

verified

True

Other things the same,as the price level falls,the exchange rate rises.A rise in the exchange rate leads to a decrease in net exports.

A) True
B) False

Correct Answer

verifed

verified

Fluctuations in real GDP are caused only by changes in aggregate demand and not by changes in aggregate supply.

A) True
B) False

Correct Answer

verifed

verified

Showing 1 - 20 of 61

Related Exams

Exam 1

Ten Principles of Economics

24 Questions

Exam 1

Ten Principles of Economics: How People Make Decisions

139 Questions

Exam 1

Ten Principles of Economics: How People Interact

103 Questions

Exam 1

Ten Principles of Economics: How the Economy As a Whole Works

73 Questions

Exam 1

Ten Principles of Economics: Part A

53 Questions

Exam 1

Ten Principles of Economics: Part B

51 Questions

Exam 2

Thinking Like an Economist

2 Questions

Exam 2

Thinking Like an Economist: The Economist As Scientist

256 Questions

Exam 2

Thinking Like an Economist: The Economist As Policy Adviser

67 Questions

Exam 2

Thinking Like an Economist: Why Economists Disagree

17 Questions

Exam 2

Thinking Like an Economist: Lets Get Going

6 Questions

Exam 2

Thinking Like an Economist: Graphing a Brief Review

68 Questions

Exam 2

Thinking Like an Economist: Part A

56 Questions

Exam 2

Thinking Like an Economist: Part B

136 Questions

Exam 3

Interdependence and the Gains From Trade

2 Questions

Exam 3

Interdependence and the Gains From Trade: A Parable for the Modern Economy

60 Questions

Exam 3

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

141 Questions

Exam 3

Interdependence and the Gains From Trade: Applications of Comparative Advantage

20 Questions

Exam 3

Interdependence and the Gains From Trade: Conclusion

1 Questions

Exam 3

Interdependence and the Gains From Trade: Part A

40 Questions

Exam 3

Interdependence and the Gains From Trade: Part B

69 Questions

Exam 4

The Market Forces of Supply and Demand

3 Questions

Exam 4

The Market Forces of Supply and Demand:Markets and Competition

46 Questions

Exam 4

The Market Forces of Supply and Demand: Demand

150 Questions

Exam 4

The Market Forces of Supply and Demand: Supply

96 Questions

Exam 4

The Market Forces of Supply and Demand: Supply and Demand Together

158 Questions

Exam 4

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

5 Questions

Exam 4

The Market Forces of Supply and Demand: Part A

38 Questions

Exam 4

The Market Forces of Supply and Demand: Part B

108 Questions

Exam 5

Elasticity and Its Applications

6 Questions

Exam 5

Elasticity and Its Applications: The Elasticity of Demand

303 Questions

Exam 5

Elasticity and Its Applications: The Elasticity of Supply

86 Questions

Exam 5

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

48 Questions

Exam 5

Elasticity and Its Applications: Part A

49 Questions

Exam 5

Elasticity and Its Applications: Part B

78 Questions

Exam 6

Supply Demand and Government Policies

5 Questions

Exam 6

Supply Demand and Government Policies: Controls on Prices

215 Questions

Exam 6

Supply Demand and Government Policies: Taxes

199 Questions

Exam 6

Supply Demand and Government Policies: Part A

46 Questions

Exam 6

Supply Demand and Government Policies: Part B

166 Questions

Exam 7

Consumers Producers and the Efficiency of Markets

10 Questions

Exam 7

Consumers Producers and the Efficiency of Markets: Consumer Surplus

98 Questions

Exam 7

Consumers Producers and the Efficiency of Markets: Producer Surplus

92 Questions

Exam 7

Consumers Producers and the Efficiency of Markets: Market Efficiency

123 Questions

Exam 7

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

7 Questions

Exam 7

Consumers Producers and the Efficiency of Markets: Part A

46 Questions

Exam 7

Consumers Producers and the Efficiency of Markets: Part B

65 Questions

Exam 8

Application the Cost of Taxation

5 Questions

Exam 8

Application the Cost of Taxation: The Deadweight Loss of Taxation

247 Questions

Exam 8

Application the Cost of Taxation: The Determinants of the Deadweight Loss

61 Questions

Exam 8

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

62 Questions

Exam 8

Application the Cost of Taxation: Conclusion

2 Questions

Exam 8

Application the Cost of Taxation: Part A

58 Questions

Exam 8

Application the Cost of Taxation: Part B

59 Questions

Exam 9

Application International Trade

2 Questions

Exam 9

Application International Trade: The Determinants of Trade

41 Questions

Exam 9

Application International Trade: The Winners and Losers From Trade

302 Questions

Exam 9

Application International Trade: The Arguments for Restricting Trade

40 Questions

Exam 9

Application International Trade: Conclusion

3 Questions

Exam 9

Application International Trade: Part A

53 Questions

Exam 9

Application International Trade: Part B

68 Questions

Exam 10

Measuring a Nations Income

6 Questions

Exam 10

Measuring a Nations Income: The Economy's Income and Expenditure

27 Questions

Exam 10

Measuring a Nations Income: The Measurement of GDP

117 Questions

Exam 10

Measuring a Nations Income: The Components of GDP

106 Questions

Exam 10

Measuring a Nations Income: Real Versus Nominal GDP

52 Questions

Exam 10

Measuring a Nations Income: Is GDP a Good Measure of Economic Well-Being

22 Questions

Exam 10

Measuring a Nations Income: Part A

44 Questions

Exam 10

Measuring a Nations Income: Part B

86 Questions

Exam 11

Measuring the Cost of Living

12 Questions

Exam 11

Measuring the Cost of Living: The Consumer Price Index

195 Questions

Exam 11

Measuring the Cost of Living: Correcting Economic Variables for the Effects of Inflation

124 Questions

Exam 11

Measuring the Cost of Living: Part A

39 Questions

Exam 11

Measuring the Cost of Living: Part B

83 Questions

Exam 12

Production and Growth

16 Questions

Exam 12

Production and Growth: Economic Growth Around the World

54 Questions

Exam 12

Production and Growth: Productivity Its Role and Determinants

159 Questions

Exam 12

Production and Growth: Economic Growth and Public Policy

157 Questions

Exam 12

Production and Growth: Conclusion the Importance of Long-Run Growth

2 Questions

Exam 12

Production and Growth: Part A

59 Questions

Exam 12

Production and Growth: Part B

62 Questions

Exam 13

Saving Investment and the Financial System

8 Questions

Exam 13

Saving Investment and the Financial System: Financial Institutions in the US economy

177 Questions

Exam 13

Saving Investment and the Financial System: Saving and Investment in the National Income Accounts

98 Questions

Exam 13

Saving Investment and the Financial System: The Market for Loanable Funds

201 Questions

Exam 13

Saving Investment and the Financial System: Part A

57 Questions

Exam 13

Saving Investment and the Financial System: Part B

63 Questions

Exam 14

The Basic Tools of Finance

2 Questions

Exam 14

The Basic Tools of Finance: Present Value Measuring the Time Value of Money

213 Questions

Exam 14

The Basic Tools of Finance: Managing Risk

120 Questions

Exam 14

The Basic Tools of Finance: Asset Valuation

70 Questions

Exam 14

The Basic Tools of Finance: Conclusion

2 Questions

Exam 14

The Basic Tools of Finance: Part A

59 Questions

Exam 14

The Basic Tools of Finance: Part B

54 Questions

Exam 15

Unemployment

15 Questions

Exam 15

Unemployment: Identifying Unemployment

163 Questions

Exam 15

Unemployment: Job Search

40 Questions

Exam 15

Unemployment: Minimum-Wage Laws

39 Questions

Exam 15

Unemployment: Unions and Collective Bargaining

49 Questions

Exam 15

Unemployment: The Theory of Efficiency Wages

41 Questions

Exam 15

Unemployment: Part A

48 Questions

Exam 15

Unemployment: Part B

221 Questions

Exam 16

The Monetary System

17 Questions

Exam 16

The Monetary System: The Meaning of Money

100 Questions

Exam 16

The Monetary System: The Federal Reserve System

52 Questions

Exam 16

The Monetary System: Banks and the Money Supply

78 Questions

Exam 16

The Monetary System: The Feds Tools of Monetary Control

126 Questions

Exam 16

The Monetary System: Part A

64 Questions

Exam 16

The Monetary System: Part B

57 Questions

Exam 17

Money Growth and Inflation

22 Questions

Exam 17

Money Growth and Inflation: The Classical Theory of Inflation

245 Questions

Exam 17

Money Growth and Inflation: The Costs of Inflation

94 Questions

Exam 17

Money Growth and Inflation: Conclusion

3 Questions

Exam 17

Money Growth and Inflation: Part A

63 Questions

Exam 17

Money Growth and Inflation: Part B

60 Questions

Exam 18

Open Economy Macroeconomics Basic Concepts

2 Questions

Exam 18

Open Economy Macroeconomics Basic Concepts: The International Flows of Goods and Capital

227 Questions

Exam 18

Open Economy Macroeconomics Basic Concepts: The Prices for International Transactions Real and Nominal Exchange Rates

76 Questions

Exam 18

Open Economy Macroeconomics Basic Concepts: A First Theory of Exchange-Rate Determination Purchasing-Power Parity

87 Questions

Exam 18

Open Economy Macroeconomics Basic Concepts: Part A

67 Questions

Exam 18

Open Economy Macroeconomics Basic Concepts: Part B

63 Questions

Exam 19

A Macroeconomic Theory of the Open Economy

3 Questions

Exam 19

A Macroeconomic Theory of the Open Economy: Supply and Demand for Loanable Funds and for Foreign-Currency Exchange

141 Questions

Exam 19

A Macroeconomic Theory of the Open Economy: Equilibrium in the Open Economy

45 Questions

Exam 19

A Macroeconomic Theory of the Open Economy: How Policies and Events Affect an Open Economy

172 Questions

Exam 19

A Macroeconomic Theory of the Open Economy: Part A

47 Questions

Exam 19

A Macroeconomic Theory of the Open Economy: Part B

56 Questions

Exam 20

Aggregate Demand and Aggregate Supply

6 Questions

Exam 20

Aggregate Demand and Aggregate Supply: Three Key Facts About Economic Fluctuations

33 Questions

Exam 20

Aggregate Demand and Aggregate Supply: Explaining Short-Run Economic Fluctuations

38 Questions

Exam 20

Aggregate Demand and Aggregate Supply: The Aggregate-Demand Curve

141 Questions

Exam 20

Aggregate Demand and Aggregate Supply: The Aggregate-Supply Curve

95 Questions

Exam 20

Aggregate Demand and Aggregate Supply: Two Causes of Economic Fluctuations

117 Questions

Exam 20

Aggregate Demand and Aggregate Supply: Part A

59 Questions

Exam 21

The Influences of Monetary and Fiscal Policy on Aggregate Demand

5 Questions

Exam 21

The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Monetary Policy Influences Aggregate Demand

198 Questions

Exam 21

The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Fiscal Policy Influences Aggregate Demand

123 Questions

Exam 21

The Influences of Monetary and Fiscal Policy on Aggregate Demand: Using Policy to Stabilize the Economy

73 Questions

Exam 21

The Influences of Monetary and Fiscal Policy on Aggregate Demand: Part A

60 Questions

Exam 21

The Influences of Monetary and Fiscal Policy on Aggregate Demand: Part B

50 Questions

Exam 22

The Short Run Trade Off Between Inflation and Unemployment

11 Questions

Exam 22

The Short Run Trade Off Between Inflation and Unemployment: The Phillips Curve

86 Questions

Exam 22

The Short Run Trade Off Between Inflation and Unemployment: Shifts in the Phillips Curve the Role of Expectations

161 Questions

Exam 22

The Short Run Trade Off Between Inflation and Unemployment: Shifts in the Phillips Curve the Role of Supply Shocks

60 Questions

Exam 22

The Short Run Trade Off Between Inflation and Unemployment: The Cost of Reducing Inflation

87 Questions

Exam 22

The Short Run Trade Off Between Inflation and Unemployment: Part A

62 Questions

Exam 22

The Short Run Trade Off Between Inflation and Unemployment: Part B

52 Questions

Exam 23

Six Debates Over Macroeconomic Policy: Should Monetary and Fiscal Policymakers Try to Stabilize the Economy

44 Questions

Exam 23

Six Debates Over Macroeconomic Policy: Should the Government Fight Recessions With Spending Hikes Rather Than Tax Cuts

15 Questions

Exam 23

Six Debates Over Macroeconomic Policy: Should Monetary Policy Be Made by Rule Rather Than by Discretion

37 Questions

Exam 23

Six Debates Over Macroeconomic Policy: Should the Central Bank Aim for Zero Inflation

49 Questions

Exam 23

Six Debates Over Macroeconomic Policy: Should the Government Balance Its Budget

38 Questions

Exam 23

Six Debates Over Macroeconomic Policy: Should the Tax Laws Be Reformed to Encourage Saving

44 Questions

Exam 23

Six Debates Over Macroeconomic Policy: Conclusion

1 Questions

Exam 23

Six Debates Over Macroeconomic Policy: Part A

68 Questions

Exam 23

Six Debates Over Macroeconomic Policy: Part B

39 Questions

Exam 24

A-Financial-Overview-Of-The-US

104 Questions

Show Answer