In the figure below, what is the value of the multiplier? a) 1 b) 2 c) 3 d) 4 Th
ID: 1161400 • Letter: I
Question
In the figure below, what is the value of the multiplier?
a) 1
b) 2
c) 3
d) 4
The effect of higher interest rates on the economy can be shown as:
a) a movement to the right along the same aggregate demand curve.
b) a movement to the left along the same aggregate demand curve.
c) a shift to the left of the entire aggregate demand curve.
d) a shift to the right of the entire aggregate demand curve.
The short-run aggregate supply curve is upward sloping due to the:
a) wealth effect.
b) input costs not changing as fast as product prices.
c) flexibility of input costs in the short-run.
d) income effect.
What happens to output in the short-run when government spending falls and aggregate supply is upward sloping
a) It increases.
b) It decreases.
c) It stays the same.
d) It varies depending on long-run aggregate supply.
"Cloud" technology means that firms are now able to store their data "in the cloud" instead of on servers that they would have to own and maintain. The effect of this on the economy would be illustrated by a:
a) movement up along the same short-run aggregate supply curve.
b) movement down along the same short-run aggregate supply curve.
c) shift to the left of the entire short-run aggregate supply curve.
d) shift to the right of the entire short-run aggregate supply curve.
Suppose increased levels of immigration were to decrease costs of labor. How would this affect short-run aggregate supply?
a) It would cause a movement up along the short-run aggregate supply curve.
b) It would cause a movement down along the short-run aggregate supply curve.
c) It would cause the short-run aggregate supply curve to shift to the right.
d) It would cause the short-run aggregate supply curve to shift to the left.
What would likely happen to short-run aggregate supply if industries become more concentrated?
a) It would cause a movement up along the short-run aggregate supply curve.
b) It would cause a movement down along the short-run aggregate supply curve.
c) It would cause the short-run aggregate supply curve to shift to the right.
d) It would cause the short-run aggregate supply curve to shift to the left.
n the following diagram, point c represents:
a) short-run equilibrium below full employment.
b) long-run macroeconomic equilibrium at full employment.
c) short-run equilibrium above full employment.
d) short-run equilibrium at less than full employment.
Which of the following shifts would represent an increase in government spending in order to move an economy out of a recession?
a) Point b to point c
b) Point b to point e
c) Point e to point a
d) Point c to point a
The following diagram shows the economy:
a) at macroeconomic equilibrium below full employment.
b) at macroeconomic equilibrium above full employment.
c) at long-run macroeconomic equilibrium.
d) above macroeconomic equilibrium.
For demand-pull inflation to occur, aggregate demand must expand so much that:
a) full employment output exceeds equilibrium output.
b) equilibrium output exceeds full employment output.
c) equilibrium is at the full employment output.
d) long-run aggregate supply exceeds short-run aggregate supply.
Suppose the economy is in long-run macroeconomic equilibrium at point e in the following diagram. Which of the following scenarios would cause the economy to shift to point a in the short run?
a) Long-run macroeconomic equilibrium at full employment.
b) Cost-push inflation.
c) Demand-pull inflation.
d) Short-run equilibrium at less than full employment.
Panel A 5,500 AE Co 5,000 4 4 3 3,000 45° 3,000 3,500 4,000 4,500 5,000 5,500 Income (y) Panel B 3,000 3,500 4,000 4,500 5,000 5,500 Income (Y)Explanation / Answer
1)
Increase in investment $ 100
Increase in income = 4400 – 400
= 4 00
Multiplier value = 400/ 100
= 4
Right answer is (D)
2)
Right answer is ( c)
Aggregate demand shall shift to left since now it would be costly to get fund at cheaper rate.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.