It\'s extremely imperative I get the correct answer on these questions, which wi

Question

It's extremely imperative I get the correct answer on these questions, which will help me learn the material for an upcoming exam. Please try to answer these questions correctly!

1. In the AD-AS model, fiscal or monetary policy cannot affect the level of output in
a. The medium run and the long run
b. The medium run and the short run
c. The short run only
d. The medium run only
e. The long run only

2. Which of the following is NOT a source of long-term output growth?
a. Growth in consumption expenditures
b. Growth in labor inputs
c. Growth in capital inputs
d. Improved technological efficiency
e. Growth in the stock of knowledge

3. In the AS-AD model, a decrease in nominal money supply will be reflected in
a. A shift of the AD-curve to the right
b. A shift of the AD-curve to the left
c. Movement along the AD-curve from right to left
d. Movement along the AD-curve from left to right
e. A shift of the AS-curve to the left

4. Monetary policy becomes less effective as
a. The marginal propensity to consume increases
b. The interest sensitivity of money demand decreases
c. The interest sensitivity of investment decreases
d. The LM-curve becomes steeper
e. The IS-curve becomes flatter

5. High-powered money
a. Earns more interest than other forms of money
b. Consists of currency and bank reserves
c. Consists of currency and demand deposits at banks
d. Includes time and demand deposits held at banks

Explanation / Answer

Please rate as lifesaver

1. A
2. B (it become more of service, not production adn labor)
3. B
4. C
5. D

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