Quiz - Chapter 32 Quiz

4/5/24, 2:49 PM Quiz: Chapter 32 Quiz
Chapter 32 Quiz
Started: Apr 5 at 2:33pm
Quiz Instructions
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Question 1 1 pts
Suppose that technological advancements stimulate $22 billion in additional investment spending. If the
MPC = 0.7, how much will the change in investment increase aggregate demand?
$35.3 billion
$22 billion
$14 billion
$72.6 billion
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Question 2 1 pts
Amount of Real Price Level Amount of Real
Output Demanded (Index Value) Output Supplied
$ 200 300 $ 500
300 250 450
400 200 400
500 150 300
600 100 200
The table gives aggregate demand-and-supply schedules for a hypothetical economy. The equilibrium
price level will be
150.
200.
300.
https://usc.instructure.com/courses/35963/quizzes/218175/take 1/10
250.
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Question 3 1 pts
Refer to the diagram. Other things equal, a shift of the aggregate supply curve from AS0 to AS1 might be
caused by a(n)
increase in productivity.
increase in aggregate demand.
increase in government regulation.
decline in nominal wages.
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Question 4 1 pts
Which of the diagrams for the U.S. economy best portrays an improvement in expected rates of return
on investment?
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Question 5 1 pts
Graphically, the full-employment, low-inflation, rapid-growth economy of the last half of the 1990s is
depicted by a
rightward shift of the aggregate demand curve along a fixed aggregate supply curve.
rightward shift of the aggregate supply curve along a fixed aggregate demand curve.
rightward shift of the aggregate demand curve and a rightward shift of the aggregate supply curve.
leftward shift of the aggregate demand curve and a leftward shift of the aggregate supply curve.
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Question 6 1 pts
If consumers expect their future real income to rise, they will
tend to spend less of their current incomes now.
not change their current spending plans.
tend to spend more of their current incomes now.
tend to save more money now.
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Question 7 1 pts
If the dollar price of foreign currencies falls (that is, the dollar appreciates), we would expect
both aggregate demand and aggregate supply to increase.
both aggregate demand and aggregate supply to decrease.
aggregate demand to decrease and aggregate supply to increase.
aggregate demand to increase and aggregate supply to decrease.
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Question 8 1 pts
Refer to the diagrams, in which AD1 and AS1 are the "before" curves and AD2 and AS2 are the "after"
curves. Other things equal, a decline in net exports caused by the foreign purchases effect of a price-
level increase is depicted by the
move from point a to point c in C.
move from point a to point b in B.
shift of the AD curve in A.
shift of the AS curve in B.
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Question 9 1 pts
Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price
of each input is $4. All else being equal, if the price of each input increased from $4 to $6, productivity
would
rise from 1 to 2.
fall from 2 to 3.
fall from 0.50 to 0.33.
remain unchanged.
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Question 10 1 pts
The reason the short-run aggregate supply curve is used when analyzing real-world economies is
the long-run aggregate supply curve is not helpful since output is fixed in the long-run.
real-world economies typically manifest simultaneous changes in both their price levels and their levels of real output
like we see in the short run.
all of the above.
because prices are fixed in the immediate-short-run, that curve is not helpful.
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Question 11 1 pts
Input Quantity Real Domestic Output
100 200
150 300
200 400
The table gives information about the relationship between input quantities and real domestic output in a
hypothetical economy. The level of productivity in the economy is
2.
200.
0.5.
4.
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Question 12 1 pts
Amount of Real Price Level Amount of Real
Output Demanded (Index Value) Output Supplied
$ 700 800 $ 1000
800 750 950
900 700 900
1000 650 800
1100 600 700
The table gives aggregate demand and supply schedules for a hypothetical economy. The equilibrium
price level will be
800.
750.
700.
650.
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Question 13 1 pts
The short-run aggregate supply curve is steeper at outputs above the full-employment output. This is
because the economy's
capital, but not labor, costs increase when producing beyond full-employment output.
total input costs begin to decline at production amounts beyond full-employment output.
costs associated with foreign currency exchange increase when producing beyond full-employment output.
available resources are already employed and adding more workers to a fixed number of capital resources reduces the
efficiency of workers leading to rising per-unit production costs.
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Question 14 1 pts
An economy's aggregate demand curve shifts leftward or rightward by more than changes in initial
spending because of the
net export effect.
real-balances effect.
multiplier effect.
wealth effect.
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Question 15 1 pts
Which of the following economic events correspond with a dramatic decline in real GDP with actual GDP
falling below potential GDP by 11 percent, but only a slight decrease in the price level for a few months?
the expansion in aggregate demand in the late 1980s
the housing bubble collapse in 2006
the oil-price shock of the early 1970s
the COVID pandemic recession in 2020
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Question 16 1 pts
Refer to the diagram. If equilibrium real output is Q2, then
producers will supply output level Q1.
the equilibrium price level is P2.
the equilibrium price level is P1.
aggregate demand is AD1.
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Question 17 1 pts
Prices and wages tend to be
flexible upward but inflexible downward.
inflexible both upward and downward.
flexible downward but inflexible upward.
flexible both upward and downward.
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Question 18 1 pts
A rightward shift in the aggregate supply curve is best explained by an increase in
the price of imported resources.
nominal wages.
business taxes.
productivity.
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Question 19 1 pts
Other things equal, if the U.S. dollar were to depreciate, the
aggregate demand curve would remain fixed in place.
aggregate supply curve would shift to the left.
aggregate supply curve would shift to the right.
aggregate demand curve would shift to the left.
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Question 20 1 pts
Suppose that real domestic output in an economy is 5,000 units, the quantity of inputs is 1,000, and the
price of each input is $1. The level of productivity is
5.
6.
1,000.
10.
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4/5/24, 2:49 PM Quiz: Chapter 32 Quiz

increase in aggregate demand.

increase in government regulation.

decline in nominal wages.

tend to spend less of their current incomes now.

not change their current spending plans.

tend to spend more of their current incomes now.

tend to save more money now.

both aggregate demand and aggregate supply to increase.

both aggregate demand and aggregate supply to decrease.

aggregate demand to decrease and aggregate supply to increase.

aggregate demand to increase and aggregate supply to decrease.

move from point a to point c in C.

move from point a to point b in B.

shift of the AD curve in A.

shift of the AS curve in B.

fall from 0.50 to 0.33.

all of the above.

net export effect.

the expansion in aggregate demand in the late 1980s

the housing bubble collapse in 2006

the oil-price shock of the early 1970s

the COVID pandemic recession in 2020

Refer to the diagram. If equilibrium real output is Q2, then

producers will supply output level Q1.

the equilibrium price level is P2.

the equilibrium price level is P1.

aggregate demand is AD1.

flexible upward but inflexible downward.

inflexible both upward and downward.

flexible downward but inflexible upward.

flexible both upward and downward.

the price of imported resources.

aggregate demand curve would remain fixed in place.

aggregate supply curve would shift to the left.

aggregate supply curve would shift to the right.

aggregate demand curve would shift to the left.

Quiz saved at 2:49pm Submit Quiz

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