Which of the following is upward sloping

Assignment Help Microeconomics
Reference no: EM13930307

1. A favorable supply shock will cause:
a. unemployment to rise and the short-run Phillips curve to shift right.
b. unemployment to rise and the short-run Phillips curve to shift left.
c. unemployment to fall and the short-run Phillips curve to shift right.
d. unemployment to fall and the short-run Phillips curve to shift left.

2. The wealth effect, interest-rate effect, and exchange-rate effect are all explanations for:
a. the slope of short-run aggregate supply.
b. the slope of long-run aggregate supply.
c. the slope of the aggregate-demand curve.
d. everything that makes the aggregate-demand curve shift.

3. Other things the same, an increase in the amount of capital firms wish to purchase would initially shift:
a. aggregate demand right.
b. aggregate demand left.
c. aggregate supply right.
d. aggregate supply left.

4. Which of the following would cause stagflation?
a. Rising government expenditures
b. Rising oil prices
c. A falling money supply
d. Technical progress

5. Depending on the size of the multiplier and crowding-out effects, the rightward shift in aggregate demand from a tax cut could be larger or smaller than the tax cut.
a. True
b. False

6. Which of the following is upward sloping?
a. Both the long-run Phillips curve and the long-run aggregate supply curve
b. Neither the long-run Phillips curve nor the long-run aggregate supply curve
c. The long-run Phillips curve, but not the long-run aggregate supply curve
d. The short-run Phillips curve, but not the long-run aggregate supply curve

7. Most economists believe that classical theory describes the world in the short run but not in the long run.
a. True
b. False

8. The multiplier for this economy is:
a. 2.86
b. 2.98
c. 4.00
d. 5.00

9. A shift of the money-demand curve from MD2 to MD1 is consistent with which of the following sets of events?
a. The government reduces government spending, resulting in a decrease in people's incomes.
b. The Federal Reserve increases the supply of money, which decreases the interest rate.
c. All of the choices apply.

10. In the short run, an increase in the money supply causes interest rates to:
a. increase and aggregate demand to shift right.
b. increase and aggregate demand to shift left.
c. decrease and aggregate demand to shift right.
d. decrease and aggregate demand to shift left.

11. The theory of liquidity preference was developed by Irving Fisher.
a. True
b. False

12. If the marginal propensity to consume is 6/7, then the multiplier is 7.
a. True
b. False

13. Aggregate demand includes:
a. only the quantity of goods and services households want to buy.
b. only the quantity of goods and services households and firms want to buy.
c. only the quantity of goods and services households, firms, and the government want to buy.
d. the quantity of goods and services households, firms, the government, and customer abroad want to buy.

14. If speculators bid up the value of the U.S. dollar in the market for foreign exchange, then:
a. U.S. goods become more expensive relative to foreign goods, so aggregate demand shifts right.
b. U.S. goods become less expensive relative to foreign goods, so aggregate demand shifts right.
c. U.S. goods become more expensive relative to foreign goods, so aggregate demand shifts left.
d. U.S. goods become less expensive relative to foreign goods, so aggregate demand shifts left.

15. The sticky-wage theory of the short-run aggregate supply curve states that when the price level rises more than expected:
a. production is more profitable and employment rises.
b. production is more profitable and employment falls.
c. production is less profitable and employment rises.
d. production is less profitable and employment falls.

16. An adverse supply shock shifts the short-run Phillips curve right and the short-run aggregate-supply curve left.
a. True
b. False

17. According to the Phillips curve, unemployment and inflation are inversely related in:
a. the short run and the long run.
b. the short run, but not the long run.
c. the long run, but not the short run.
d. neither the long run nor the short run.

18. If the Fed announced a policy to reduce inflation and people found it credible, the short-run Phillips curve would shift:
a. right and the sacrifice ratio would fall.
b. right and the sacrifice ratio would rise.
c. left and the sacrifice ratio would fall.
d. left and the sacrifice ratio would rise.

19. During World War II, government expenditures increased almost five-fold and output almost doubled.
a. True
b. False

20. Suppose the multiplier is 5 and the government increases its purchases by $10 billion. Also, suppose the AD curve would shift from AD1 to AD2 if there were no crowding out; the AD curve actually shifts from AD1 to AD3 with crowding out. Additionally, suppose the horizontal distance between the curves AD1 and AD3 is $20 billion. The extent of crowding out, for any particular level of the price level, is:
a. the horizontal distance between the curves MD1 and MD2.
b. $40 billion.
c. $30 billion.
d. $20 billion.

Reference no: EM13930307

Questions Cloud

Makeup assignment specification : This makeup assignment is a follow up from Major Report 1 and 2 that relates to the Indian Railways case study.
Calculate the effective rates of protection : Calculate the effective rates of protection in Pacifica for the production of  (i) canned baked beans and  (ii) canned tuna.
What types of expenditures are usually made : What types of expenditures are usually made from a petty cash fund?
Calculate the force p required to rotate the body : Calculate the force P required to rotate the body counterclockwise - The semicircular 5-kg plate rotates about a fixed bearing at O that can exert a maximum frictional moment.
Which of the following is upward sloping : Which of the following is upward sloping? Depending on the size of the multiplier and crowding-out effects, the rightward shift in aggregate demand from a tax cut could be larger or smaller than the tax cut
Investing in billabong international limited : You are an accountant at RSM GroupAccountants&Investment Advisers. You have been approached by a group of investorsfor your professional advice on investing in Billabong International Limited.
How fast the purchasing power of your bank account rises : The real interest rate tells you how fast the purchasing power of your bank account rises over time
Products and socially responsible investing : Your client is a strong believer in supporting Australian made products and Socially Responsible Investing. The latter would mean adopting an investment strategy which seeks to consider both financial return and social good. Your client is also a ..
Do we know which dna has predispositions : What do you think are some of the causal factors for autism that might explain its increase in diagnosis?. Do you feel the causal factor is both physiological and psychological? Why?

Reviews

Write a Review

 

Microeconomics Questions & Answers

  What strategy do you expect the players to adopt

Samsung and Apple are two major producers of smart phones. Are these firms guaranteed to make high profits since they are the two largest firms in terms of market share in the industry? Explain.

  Federal tax and expenditure programs

Federal tax and expenditure programs:

  Exactly how often do you have to catch illegal parkers

Catching illegal parkers is expensive. Exactly how often do you have to catch illegal parkers, before they will buy the $63 parking permit instead? (Hint: Set EU legal = EU illegal and solve for p, the probability).

  Write out a regression with quarter dummies

Write out a regression with quarter dummies (use summation notation to be compact). How is this same as a time fixed effects regression? Write out a regression equation with a variable “time,” which takes on the value 1 at the beginning of the sample..

  Factors affect the supply and demand of gasoline

The prices of petroleum products in the world market are constantly in the news and associated with them is the falling gasoline prices in the United States. In an essay, discuss the factors that are affecting the market for gasoline.

  Depreciation on the income statement of andrews

Last year Attic charged $3,917,680 Depreciation on the Income Statement of Andrews. If early this year Attic sold all its depreciable assets for their book value, the effect on Andrews's financial statements would be (all other items remaining equal)..

  Impose a protectionist policy such as a tariff

Impose a protectionist policy such as a tariff - domestic market following the removal of an import quota?

  Comparison between information entered directly

How would scanning records contribute to the accuracy and completeness of the EHR?

  Identification problem in development of demand function

Identification Problem in the development of a demand function is a result - The method which can give some information in estimating demand of a product that hasn't yet come to market - One commonly used test in checking for the presence of autocorr..

  Suppose that rather than the declining demand assumed

Suppose that rather than the declining demand assumed in Example 2.7, a decrease in the cost of copper production causes the supply curve to shift to the right by 40 percent. How will the price of copper change?

  Compute the marginal and average tax rates at the given

a calculate the marginal and average tax rates at the following income

  Predict the type of long-term care

Predict the type of long-term care needed as the 21st Century America advances in age. Defend or critique the type of care patients obtain in private nursing homes as compared to public institutions or in-home care.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd