Which of the following will NOT shift the ADTT curve? O a. A rise in consumer confidence O b. A rise in interest rates O C. A rise in government spending
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- QUESTION 2 Other things the same, when the price level rises, interest rates O a. fall, which means consumers will want to spend less on homebuilding. Ob.fall, which means consumers will want to spend more on homebuilding. O C. rise, which means consumers will want to spend more on homebuilding. Od.rise, which means consumers will want to spend less on homebuilding. QUESTION 3 Other things the same, if the price level rises by 2% and people were expecting it to rise by 5%, then some firms have O a. lower than desired prices, which depresses their sales. O b. lower than desired prices, which increases their sales. O. higher than desired prices, which increases their sales. d.higher than desired prices, which depresses their sales.Which of the following will NOT shift the ADT curve? O a. A rise in government spending O b. A rise in exports Ос. A rise in interest rates O d. A rise in consumer confidenceThe difference between planned and unplanned spending is Select one: O a. always negative O b. unplanned changes in inventories O c inventories O d. always positive
- When there's an increase in the cost of electricity for operating firms machines: O a. The investment demand curve will shift to the right O b. The consumption schedule will shift downward O c. The saving schedule will shift downward O d. The investment demand curve will shift to the leftPurchases of which of the following goods would be dramatically reduced during a recession? Select one: O a. ink pens Ob. refrigerators O c gasoline O d. tomatoes6. Over time, increases in Potential GDP are the result of O A. inflation O B. increased government spending O C. lower taxes O D. increases in technology
- Consider the following graph. Suppose the economy is currently at point A. Suppose there is a temporary decrease in the prices of raw materials. (Raw materials are used for production.) The economy will go to point, in short run, and then point in long run. Price level O C; B OB;A OB; C O CA ODA Question 2 LRAS - O vertical straight; increase by 10 percent O upward sloping: decrease by 10 percent O vertical straight; remain unchanged O downward sloping: increase by 10 percent Odownward sloping: decrease by 10 percent SRAS₁ SRAS AD Real GDP (Y) 4 LRAS is a(n) line. If the price level drops by 10 percent, then all else being equal, the long- run quantity of aggregate supply willciples of Macroeconomics || Fall20 1 What does the PPI measure? ed Select one: d out of O a the average change in the prices paid for all goods produced in the economy over a given year O b. the level of production of goods and services generated in the economy in a given year question O c. the difference between the prices consumers pay for goods and services and the prices producers pay for O d. the average of the prices received by producers of goods and services at all stages of the production pro Ti navigation Type here to searchWhat is your prediction for the economy when you observe that inventories are taking an unplanned dive? You predict that there will be OA. an expansion O B. a trough O C. a business cycle O D. a recession
- 1Why low rate inflation is considered necessary for economic grwoth? Oa It does not affect the purchasing power of wages Ob. It indicates that the currency is in continuous demand by the people Oc taffects only the rich and not the poor Od itact as an incentive to boost in supply in the economy 2When the economy is in Keynesian macroeconomic equilibrium, planned investment is greater than actual investment. O a False O b. True 3Government fixes the floor and ceiling price which will not allow the producers to increase the price on their wish, this is a type of. O a Physical control called price pegging O b. Monetary policy control measures O. Physical control called price tagging Od. Fiscal policy control measures O e None 4Rising output coupled with falling prices is called stagflation O a. False O b. True 5The Value of marginal propensity to consume lies O a. O to 1 O b. Less than zero Oc -1 to 1 Od. Between O to 1 6The Central Bank way to control inflation is Oa Monetary policy…If output is less than planned aggregate expenditure, there will be Lütfen birini seçin: O A. an unplanned increase in inventories O B. a planned decrease in inventories. O C. no change in inventories O D. a planned increase in inventories O E. an unplanned decrease in inventoriesWhen do net exports of goods and services increase? ... Net exports of goods and services increase when O A. investment increases B. government expenditure on goods and services increases C. exports of goods and services increase and imports of goods and services increase O D. exports of goods and services decrease but imports of goods and services decrease by more than exports dec