Which of the following will most likely occur as the result of an unanticipated increase in aggregate demand?
a. an increase in output and a move to a higher price level
b. an increase in prices and a long-run increase in output
c. an increase in long-run aggregate supply (LRAS shifts to the right)
d. a decrease in the natural rate of unemployment
A
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Which of the following is true regarding demand?
i. Demand is the relationship between quantity demanded and the price of a good when all other influences on buying plans remain the same. ii. Demand refers to one quantity at one time. iii. "Demand" and "quantity demanded" are the same thing. A) i only B) both i and ii C) iii only D) ii only E) both ii and iii
Compared to their percentage shares in 1968, over the next 40 years, the percentage shares of each of the lowest four quintiles
A. rose substantially. B. rose somewhat. C. stayed about the same. D. declined.
The most likely impact of an unanticipated increase in the money supply is a(n): a. increase in the real interest rate, which in turn stimulates investment and GDP
b. decrease in the real interest rate, which in turn stimulates investment and GDP. c. decrease in real output, which causes the real interest rate to decline and in turn stimulate investment and GDP. d. increase in real output, which causes the real interest rate to decline.
Suppose the economy is initially operating at full employment. A fiscal policy action that results in an increase in the size of the budget deficit will cause which of the following in the long run?
A. a reduction in the price level. B. change the composition of real GDP. C. an increase in real GDP. D. have no effect on both the level and composition of real GDP.