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Title: Quiz Four Started: September 30, 2010 10:33 PM Submitted: September 30, 2010 11:11 PM Time spent: 00:38:06 Total score: 76/100 = 76% Total score adjusted by 0.0 Maximum possible score: 100

1.

Chapter 29 #060
Answer the next question(s) based on the following list of factors that are related to the aggregate demand curve.

Which of the above factors best explain the downward slope of aggregate demand curve? Student Value Response A. 2, 4, and 6 B. 7, 9, and 10 C. 1, 3, and 100% 8 D. 4, 6, and 7 Score: 4/4 Correct Answer Feedback

2.

Chapter 29 #034
An increase in the real value of stock prices, which is independent of a change in the price level, would best be an example of the:

Realbalances effect C. Interestrate effect D. Foreign purchases effect B. A multiplier effect B. Wealth 100% effect Score: 4/4 Correct Answer Feedback 3. Chapter 30 #007 Which group has a direct responsibility for providing analysis. A substitution effect 100% D. Chapter 29 #019 One explanation for the downward slope of the aggregate demand curve is that a change in the price level results in: Student Value Response A.S. President on economic matters? Student Response Value Correct Answer Feedback . advice and assistance to the U. An income effect C. A realbalances effect Score: 4/4 Correct Answer Feedback 4.Student Value Response A.

Chapter 29 #031 An expected rise in the rate of inflation for consumer goods will: Student Value Response A. The Joint Economic Committee D. The average Correct Answer Feedback . The Federal Reserve Board Score: 4/4 5. Decrease aggregate demand B.A. Decrease aggregate supply Score: 4/4 Correct Answer Feedback 6. Chapter 30 #038 When government spending is increased. The Council 100% of Economic Advisors C. the amount of the increase in aggregate demand primarily depends on: Student Value Response A. Increase 100% aggregate demand D. Increase aggregate supply C. The Congressional Budget Office B.

Interest rate effect Correct Answer Feedback . Income 0% taxes D. If the economy is at point B and the domestic price level declines by 50 points. which shows an aggregate demand curve for a hypothetical economy. The size of the multiplier C. Exchange rates Score: 0/4 7. then the: Student Value Response A. Chapter 29 #026 Refer to the above graph.propensity to consume B. Realbalances effect would keep the economy at point B B.

would move the economy to point A C. Leftward shift in the aggregate demand curve B. Foreign purchases effect would move the economy to point A D. Movement along an Correct Answer Feedback . Chapter 30 #023 In an aggregate demand and aggregate supply graph. a contractionary fiscal policy can be illustrated by a: Student Value Response A. Rightward 0% shift in the aggregate demand curve C. Foreign 100% purchases effect would move the economy to point C Score: 4/4 8. Rightward shift in the aggregate supply curve D.

The price level 0% C. Expansionary fiscal policy C. An appreciation in the value of the U. then this would be an example of a(n): Student Response A.existing aggregate supply curve Score: 0/4 9. The quantity of real output demanded B. An aggregate demand determinant D. Aggregate supply Score: 0/4 Correct Answer Feedback 10. Supply-side fiscal policy B. dollar E.S. Chapter 30 #010 If the Congress passes legislation to increase government spending to counter the effects of a recession. Chapter 29 #051 A shift in the aggregate demand curve would be caused by a change in: Student Value Response A. Contractionary Value Correct Answer Feedback 100% .

Increase the quantity of real Correct Answer Feedback . Decrease in the level of income B. Increase in the level of income D.fiscal policy D. Decrease 100% aggregate demand B. Chapter 29 #005 A decline in the quantity of real output demanded along the aggregate demand curve is a result of a(n): Student Value Response A. Chapter 29 #029 An expected decline in the prices of consumer goods will: Student Value Response A. Nondiscretionary fiscal policy Score: 4/4 11. Increase 100% in the price level C. Decrease in the price level Score: 4/4 Correct Answer Feedback 12.

Decrease the quantity of real domestic output demanded Score: 4/4 13. A substitution effect D. An interest 100% rate effect Score: 4/4 Correct Answer Feedback 14. Increase aggregate demand D. Chapter 30 #029 . An income effect C.domestic output demanded C. A multiplier effect B. Chapter 29 #006 Which effect best explains the downward slope of the aggregate demand curve? Student Value Response A.

Refer to the above graph. Movement along the aggregate demand curve Score: 0/4 Correct Answer Feedback . Shift in the aggregate demand curve from AD1 to AD3 D. A contractionary fiscal policy can best be represented by a: Student Value Response 0% A. Shift in the aggregate demand curve from AD3 to AD2 C. Shift in the aggregate demand curve from AD1 to AD2 B.

Decrease in aggregate demand Score: 0/4 Correct Answer Feedback 16.15. Chapter 30 #017 An expansionary fiscal policy can be illustrated by a(n): Student Value Response A. Monetary policy D. Chapter 30 #001 When the Federal government uses taxation and spending actions to stimulate the economy it is conducting: Student Value Response A. Increase in aggregate demand D. Increase 0% in aggregate supply C. Incomes policy C. Fiscal policy 100% B. Chapter 29 #040 . Employment policy Score: 4/4 Correct Answer Feedback 17. Change in the price level B.

The quantity of real domestic output demanded increases 0% D. Price level 100% and the purchasing of real domestic output C. Price level and the Correct Answer Feedback . Chapter 29 #001 The aggregate demand curve is the relationship between the: Student Value Response A. Price level and the sales of producers B. Aggregate demand decreases B. The quantity of real domestic output demanded decreases Score: 0/4 Correct Answer Feedback 18. Aggregate demand increases C.If the dollar appreciates in value relative to foreign currencies: Student Value Response A.

Real domestic output bought and the real domestic output sold Score: 4/4 19.distribution of real domestic output D. Chapter 30 #026 Refer to the above graph. Increase aggregate demand from AD2 to AD1 by decreasing taxes B. Decrease aggregate demand from AD2 to AD3 by Correct Answer Feedback . What fiscal policy would increase real GDP? Student Value Response A. The economy is at equilibrium at point B.

" This statement best describes how the progressive income tax system: Student Value Response A. Offsets the timing problem for fiscal policy Correct Answer Feedback . Chapter 30 #051 A government economist states that: "The collection of personal income tax revenues automatically falls during a recession.increasing government spending C. Decreases real interest rates in the economy C. Increases crowding out in the economy B. Decrease aggregate demand from AD2 to AD3 by decreasing government spending 100% D. Increase aggregate demand from AD2 to AD3 by decreasing taxes Score: 4/4 20.

D. The classical range of the aggregate supply curve D. Why the aggregate demand curve is downsloping B. and real-balances effects explain: Student Value Response 100% A. Chapter 29 #015 The foreign purchases. The horizontal range of the aggregate supply curve C. interest rate. Serves as 100% an automatic stabilizer for the economy Score: 4/4 21. Why the consumption schedule remains stable when the price level changes Score: 4/4 Correct Answer Feedback 22. Chapter 29 #011 The foreign purchases effect suggests that a: .

Student Value Response A. Fall in our domestic price level will decrease our imports and increase our exports. Fall in our domestic price level will increase our imports and reduce our exports. thereby reducing the net exports component of aggregate demand C. Rise in our 100% domestic price level will increase our Correct Answer Feedback . thereby reducing the net exports component of aggregate demand B.

Rise in our domestic price level will decrease our imports and increase our exports. thereby reducing the net exports component of aggregate demand Score: 4/4 23.imports and reduce our exports. Political business cycle B. thereby reducing the net exports component of aggregate demand D. Expansionary fiscal policy Value Correct Answer Feedback . Chapter 30 #012 If the Congress passes legislation to raise taxes to control demand-pull inflation. then this would be an example of a(n): Student Response A.

Contractionary fiscal policy C. Standardized budget B. Budget surplus Score: 4/4 Correct Answer Feedback 25. Chapter 30 #033 If Congress passes legislation to cut taxes and increase government spending to counter the effects of a severe recession. If the price level is 200. Chapter 29 #023 Refer to the above graph. Expansionary 100% fiscal policy D. Nondiscretionary fiscal policy Score: 4/4 24. the quantity of real GDP demanded is: . which shows an aggregate demand curve for a hypothetical economy. Contractionary 100% fiscal policy D.C. this would be an example of a(n): Student Value Response A.

$800 billion Score: 4/4 Correct Answer Feedback . $500 billion 100% B. $700 billion D.Student Value Response A. $600 billion C.

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