Economics Chapter 14 Answers

994 Words4 Pages
Question 1 1 out of 1 points According to the aggregate demand and aggregate supply model, in the long run what is the impact of an increase in the money supply? Answer Selected Answer: It leads to increased price level, but there is no change in real GDP. Correct Answer: It leads to increased price level, but there is no change in real GDP. Question 2 1 out of 1 points Which of the following would make the price level decrease and real GDP increase? Answer Selected Answer: Long-run aggregate supply shifts right. Correct Answer: Long-run aggregate supply shifts right. Question 3 0 out of 1 points According to the sticky wage theory, which of the following…show more content…
What are the effects of this decrease in wealth? Answer Selected Answer: a decrease in consumption, shown as a movement to the left along a given aggregate demand curve Correct Answer: a decrease in consumption, which shifts the aggregate demand curve to the left Question 3 1 out of 1 points Assuming that a is positive, how are theories of short-run aggregate supply expressed mathematically? Answer Selected Answer: quantity of output supplied = natural rate of output + a(actual price level – expected price level) Correct Answer: quantity of output supplied = natural rate of output + a(actual price level – expected price level) Question 4 0 out of 1 points Why does a decrease in the price level induce an increase in the aggregate quantity of goods and services demanded? Answer Selected Answer: because as wealth rises, interest rates rise, and the dollar appreciates Correct Answer: because as wealth rises, interest rates fall, and the dollar depreciates Question 5 0 out of 1 points Consider the exhibit below for the following questions. Figure 14-1 Refer to Figure 14-1. How would an increase in the money supply move the economy in the short and long run? Answer Selected Answer: From C to B in the short run and the long run. Correct Answer: From C to

More about Economics Chapter 14 Answers

Open Document