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chapter 13
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Questions in this quiz (30)
1The basic aggregate demand and aggregate supply curve model helps explain
- AA) short term flux in real GDP and the price level
- BB) long term growth
- CC) price flux in the individual market
- DD)output flux in the individual market
2the _______ shows the relationship between the price level and quantity of real GDP demanded
- AA) consumer price index
- BB) aggregate expenditure line
- CC) 45- degree line
- DD) aggregate demand curve
3All of the following would be considered a positive addition to household wealth expect
- AA) the equity in ones home
- BB) 500 shares of google stock
- CC) the balance of your savings account
- DD) a credit card balance
4Which of the following would best describe the wealth effect
- AA) When price level falls the real household wealth falls
- BB) When price level falls the nominal value of household wealth falls
- CC) When price level falls the nominal value of household wealth rises
- DD) When price level falls the real value of household wealth rises
5An increase in the price level results in an increase ______ in the quantity go real GDP demanded because _____
- AA) decrease, a higher price level reduces consumption, investments, and net exports
- BB) a increase,a higher price level reduces consumption, investments, and net exports
- CC) decrease, higher price level increases counsumption investment and net exports
- DD) increase , higher price level increases counsumption investment and net exports
6When the price level in the U.S falls relative to the price level of other countries _____ will fall_____ will rise and ____ will rise
- AA) imports exports net imports
- BB) exports imports net exports
- CC)net exports exports imports
- DD) net exports imports exports
7the international trade effects states
- AA) an increase on the price level will raise net exports
- BB) an increase in the price level will lower net exports
- CC) an increase in the price level will raise exports
- DD) an increase in the price level will lower imports
8Deflation will
- AA) increase aggregate demand
- BB) increase the quantity of real GDP demanded
- CC) decrease aggregate demanded
- DD) decrease the quantity of real GDP demanded
9Spending on the war in Afghanistan is essentially catagorized government purchases. How do increases in spending on the war affect the aggregate demand curve
- AA) they will move the economy up along a stationary aggregate demand curve
- BB) they will move the economy down along a stationary aggregate demand curve
- CC) they will shift the aggregate demand curve left
- DD) they will shift the aggregate demand curve right
10Which of the following model relies on emphasizing the importance pf sticky wages and prices?
- AA) the monestarist model
- BB) the new classical model
- CC)the real business cycle model
- DD) the new Keynesian model
11The recession of 2007-2009 made many countries pessimistic about their future income. How does this increased pessimism affect the aggregate demand curve?
- AA) this will move the economy up along a stationary aggregate demand curve
- BB)this will move the economy down along a stationary aggregate demand curve
- CC) This will shift the curve to the left
- DD) this will shift the curve to the left
12The new classical model has a central idea that
- AA) wage and price stickiness explains flux in GDP
- BB) workers and firms have rational expectations
- CC) The federal reserve should adopt monetary growth rate
- DD) shifts in arregate demand have no impact on real GDP
13which of the following models advocates that the quantity of money should increased at a constant rate?
- AA) monetarist model
- BB) the new classical model
- CC)the real business cycle model
- DD) the new Keynesian model
14The real business cycle model focouses on how
- AA) wage and price stickiness explains flux in in real GDP
- BB) the labor theory of value is the best measure of value of a good or service
- CC) The federal resereve should adapt a monetary growth rate
- DD) productivity shocks explain flux in GDP
15Proponets of the real buisness cycle model argue that the short-run arrgreagte supply curve is
- AA) flat
- BB) postiviley sloped
- CC) veritical
- DD) negativiley sloped
16According to the real business cycle model ____ in the aggregate demand ______ GDP
- AA) increase, decrease
- BB) increase, increase
- CC) increase, do not affect
- DD) decrease, increase
17If workers and firms have rational expectations, they form their expectations using
- AA) all in the information available to them
- BB) only information from the past
- CC) only information provided by the government
- DD) only information gathered from random sources
18The proponets of ____ and _____ think that the Federal Reserve should adopt a constant monetary growth rule
- AA) new Keynesiansim, the new classical model
- BB) the real business cycle model, marxism
- CC)rational expectations, monetarism
- DD) the monterist model, the Keynesian model
19According to Marx, which of the following factors of production did not contribute anything of value to production?
- AA)labor
- BB) capital
- CC)natural resources
- DD) entrenuership
20Monetarism is a school of though put forth by _____ who argued that the economy would most likley be at potential GDP
- AA) Karl Marx
- BB) Milton Friedman
- CC) Finn Kydland and Edward Prescott
- DD) Robert Lucas and Thomas Sargent
21The new Keynesians emphasize the importance of
- AA) rational expectations
- BB) the monetary growth rule
- CC) real causes of the business cycle
- DD) sticky wages and prices
22Which of the following models has as its central idea that workers and firms have rational expectations
- AA) the monetarist model
- BB) the new classical model
- CC) the real buiness cycle model
- DD) the new Keynesian model
23The main result of the monetarist model is that
- AA) works and firms have rational expectations
- BB) the quantity of money should be increased at a constant rate
- CC)productivity shocks explain flux in real GDP
- DD) the economy is slow to adjust to sticky wages and prices
24Which of the following models focuses on how productivity shocks explain flux in real GDP
- AA) the monterist model
- BB) the new classical model
- CC) the real business cycle model
- DD) the new keynesian model
25Proponents of the _____ model argue that the short run supply curve is vertical
- AA) monetarist model
- BB)the new classical model
- CC) the real business cycle model
- DD) the new Keynesian model
26According to the real business cycle model
- AA) increase in aggragte demand raise GDP
- BB)increase in aggragte demand lower GDP
- CC) increases in aggragte demand do not affect GDP
- DD) increases in aggregate demand lower the price level
27The monetary growth rule is a plan for increasing the quantity of money
- AA) at a fixed rate that does not respond to changes in the economic condition
- BB) at a rate which increases as economy grows
- CC) at rate which decreases as economy declines
- DD) at a rate which increases during recissions and decrease during expansions
28The proponents of rational expectations and monetarism think that the Federal Reserve should adopt
- AA) an inflation target
- BB) a monetary aggregate traget
- CC)a constant monetary growth rule
- DD) a intrest rate target
29According to ____ entrenership does not contribute anything of value to the production
- AA) Robert Lucus and Thomas Sargent
- BB) Milton Friendman
- CC) John Maynered Keynes
- DD) Karl Marx
30Monetraism is a school of thought put forth by milton Freidman. He argued that the economy would most likely
- AA) be below potential GDP
- BB) Be at potential GDP
- CC) be unstable
- DD) be above potential GDP
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- Quiz on chapter 13, created by sobe711 on 06/12/2014.
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- sobe711
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