Economics Mcqs — Test 82
Page 1 of 3
Question 1
According to the interest rate effect aggregate demand slopes downward (negatively) because ?
Question 2
Which of the following is not a reason why the aggregate demand curve slopes downward ?
Question 3
Suppose the economy is initially in long run equilibrium Then suppose there is a drought that destroys much of the wheat crop if policymakers allow the economy to adjust to long-run equilibrium on its own, according to the model to aggregate demand and aggregate supply what happens to prices and output in the long run ?
Question 4
Which of the following events shifts the short run aggregate supply curve to the right ?
Question 5
Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers allow the economy to adjust to the long run natural rate on its own, ?
Question 6
Policy makers are said to “accommodate” an adverse supply shock if they ?
Question 7
Which of the following statements is true regarding the long-run aggregate supply curve? The long-run aggregate supply cruve ?
Question 8
The natural rate of output is the amount of real GDP produced ?
Question 9
Suppose the price level falls but suppliers only notice that the price of their particular product has fallen Thinking there has been a fall in the relative price of their product they cut back on production, This is a demonstration of the ?
Question 10
Suppose the economy is initially in long-run equilibrium Then suppose there is an increase in military spending due to rising international tensions According to the model of aggregate demand and aggregate supply what happens to prices and output in the long run ?