Economics CC 2 Sec ON 1 Week 7 Quiz

Economics CC 2 Sec ON 1 Week 7 Quiz | chatbot las positas  community college

Question 1

Increases in the burdens of government regulations can make production more costly for producers, shifting the short run aggregate supply curve left; it can also reduce potential output, shifting the long-run aggregate supply curve left.    

·         True  

·         False

 

Question 2

The short-run equilibrium level of real output and the price level are determined by the intersection of the aggregate demand curve and the short-run aggregate supply curve.    

·         True  

·         False

 

Question 3

A short run equilibrium:    

·         Will be at a greater output level than the natural level of real output.    

·         Will be at the natural level of real output.    

·         Will be at a smaller output level than the natural level of real output.    

·         Short-run equilibrium could be at any of the above levels of output.

 

Question 4

Which of the following decreases U.S. aggregate demand?    

·         a lower price level, increasing citizen's real wealth    

·         a lower price level, reducing interest rates    

·         a lower price level, increasing exports and decreasing imports    

·         None of the above decrease U.S. aggregate demand.

 

Question 5

A recession is most commonly caused by:    

·         an increase in aggregate demand.    

·         a decrease in aggregate demand.

·         an increase in aggregate supply.    

·         a decrease in aggregate supply.

 

Question 6

Short-run aggregate supply:    

·         is a fixed volume of output.    

·         reflects how much RGDP suppliers are willing and able to produce at different price levels.    

·         shifts only when the LRAS shifts.    

·         is not affected at all by the price level.

 

Question 7

The short-run aggregate supply curve shows the relationship between ____ and ____, holding all other factors constant.    

·         a price level, the quantity of real GDP supplied    

·         price level, the supply of real GDP    

·         nominal GDP, the price level of real GDP    

·         the quantity of nominal GDP supplied, the price level

 

Question 8

Which of the following is true of the long-run aggregate supply curve?    

·         It is vertical.    

·         The level of RGDP supplied does not change as the price level changes.    

·         The level of RGDP supplied changes with the levels of capital, land, labor, and technology available to the economy.    

·         all of the above

 

Question 9

Faster growth rates by a major trading partner, combined with an increase in stock market wealth, would have what effect on aggregate demand?    

·         AD would increase.    

·         AD would decrease.    

·         AD would stay the same.    

·         AD could either increase or decrease, depending on which change was of a greater magnitude.

 

Question 10

If exports and imports both rose, but exports rose less than imports,    

·         AD would decrease.    

·         AD would increase.    

·         AD would be unaffected.    

·         AD could either increase or decrease.