A) an increase in the money supply.
B) an increase in taxes.
C) a decrease in the expected price level.
D) a decrease in the natural rate of unemployment.
F) A) and C)
Correct Answer
verified
Correct Answer
verified
A) increases by less than expected so that firms believe the relative price of their output has increased.
B) increases by less than expected so that firms believe the relative price of their output has decreased.
C) increases by more than expected so that firms believe the relative price of their output has increased.
D) increases by more than expected so that firms believe the relative price of their output has decreased.
F) B) and C)
Correct Answer
verified
Correct Answer
verified
A) a decline in the money supply
B) a decrease in stock prices
C) the collapse of the banking system
D) All of the above are correct.
F) B) and D)
Correct Answer
verified
Correct Answer
verified
A) decrease consumption, shown as a movement to the left along a given aggregate-demand curve.
B) increase consumption, shown as a movement to the right along a given aggregate-demand curve.
C) decrease consumption, shown by shifting the aggregate-demand curve to the left.
D) increase consumption, shown by shifting the aggregate-demand curve to the right.
F) B) and C)
Correct Answer
verified
Correct Answer
verified
A) households want to lend less.
B) the interest rate rises.
C) firms want to spend less on investment goods.
D) None of the above are correct.
F) B) and D)
Correct Answer
verified
Correct Answer
verified
A) affect nominal but not real variables. This view that money is ultimately neutral is consistent with classical theory.
B) affect nominal but not real variables. This view that money is ultimately neutral is inconsistent with classical theory.
C) affect real but not nominal variables. This view that money is ultimately neutral is consistent with classical theory.
D) affect real but not nominal variables. This view that money is ultimately neutral is inconsistent with classical theory.
F) A) and D)
Correct Answer
verified
Correct Answer
verified
A) Congress reduces purchases of new weapons systems.
B) The Fed buys bonds in the open market.
C) The price level falls.
D) Net exports fall.
F) A) and D)
Correct Answer
verified
Correct Answer
verified
A) repeal of an investment tax credit, an increase in the money supply
B) repeal of an investment tax credit, a decrease in the money supply
C) passing of an investment tax credit, an increase in the money supply
D) passing of an investment tax credit, a decrease in the money supply
F) A) and C)
Correct Answer
verified
Correct Answer
verified
A) both output and prices are higher.
B) output is higher and prices are lower.
C) output is lower and prices are higher.
D) both output and prices are lower.
F) B) and C)
Correct Answer
verified
Correct Answer
verified
A) Both the price level and real GDP rise.
B) Both the price level and real GDP fall.
C) The price level rises and real GDP falls.
D) The price level falls and real GDP rises.
F) C) and D)
Correct Answer
verified
Correct Answer
verified
A) rise, so domestic residents will want to hold more foreign bonds.
B) rise, so domestic residents will want to hold fewer foreign bonds.
C) fall, so domestic residents will want to hold more foreign bonds.
D) fall, so domestic residents will want to hold fewer foreign bonds.
F) C) and D)
Correct Answer
verified
Correct Answer
verified
A) rising prices only.
B) rising real GDP only.
C) rising prices and rising real GDP.
D) neither rising prices nor rising real GDP.
F) A) and B)
Correct Answer
verified
Correct Answer
verified
A) the exchange-rate effect
B) the wealth effect
C) the interest-rate effect
D) All of the above are correct.
F) A) and B)
Correct Answer
verified
Correct Answer
verified
A) both a decrease in the price level and the implementation of an investment tax credit
B) a decrease in the price level but not the implementation of an investment tax credit
C) the implementation of an investment tax credit but not a decrease in the price level
D) neither a decrease in the price level nor the implementation of an investment tax credit
F) None of the above
Correct Answer
verified
Correct Answer
verified
B) False
Correct Answer
verified
Correct Answer
verified
A) A to B.
B) C to D.
C) B to A.
D) D to C.
F) B) and D)
Correct Answer
verified
Correct Answer
verified
A) increases, so aggregate demand shifts right.
B) increases, so aggregate supply shifts right.
C) decreases, so aggregate demand shifts left.
D) decreases, so aggregate supply shifts left.
F) All of the above
Correct Answer
verified
Correct Answer
verified
A) rises, shifting aggregate demand right.
B) rises, shifting aggregate demand left.
C) falls, shifting aggregate supply right.
D) falls, shifting aggregate supply left.
F) None of the above
Correct Answer
verified
Correct Answer
verified
A) raises the real costs of production, so the short-run aggregate supply curve shifts left.
B) raises the real costs of production, so the aggregate quantity of goods and services declines.
C) reduces the real costs of production, so the short-run aggregate supply curve shifts right.
D) reduces the real costs of production, so the aggregate quantity of good and services rises.
F) None of the above
Correct Answer
verified
Correct Answer
verified
A) the relationship between output and unemployment is erratic and difficult to characterize.
B) when one macroeconomic variable that measures income or spending is falling, other macroeconomic variables that measure income or spending are likely to be rising.
C) recessions do not occur at regular intervals.
D) All of the above are correct.
F) All of the above
Correct Answer
verified
Correct Answer
verified
Showing 261 - 280 of 471
Related Exams