If you're seeing this message, it means we're having trouble loading external resources on our website. Show If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked. If you're seeing this message, it means we're having trouble loading external resources on our website. If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked. 1. The interest-rate effect suggests that:A. a decrease in the supply of money will increase interest rates and reduce interest-sensitive consumption and investment spending. B. an increase in the price level will increase the demand for money, reduce interest rates, and decrease consumption and investment spending. C. an increase in the price level will increase the demand for money, increase interest rates, and decrease consumption and investment spending. D. an increase in the price level will decrease the demand for money, reduce interest rates, and increase consumption and investment spending. 2. The foreign purchases effect suggests that a decrease in the Albanian price level relative to other countries will: 3. The foreign purchases effect: 4. Other things equal, if the national incomes of the major trading partners of Albania were to rise, Albanian: 5. Which one of the following would not shift the aggregate demand curve? 6. Other things equal, a decrease in the real interest rate will: 7. An increase in net exports will shift the AD curve to the: 8. If investment increases by $10 billion and the economy's MPC is .8, the aggregate demand curve will shift: 9. Which of the following would most likely shift the aggregate demand curve to the right? 10. In an effort to avoid recession, the government implements a tax rebate program, effectively cutting taxes for households. We would expect this to: 11. The immediate-short-run aggregate supply curve is: 12.In the above diagram, the economy's immediate-short-run AS curve is line ___, its short-run AS curve is _____, and its long-run AS curve is line ___. 13 The shape of the immediate-short-run aggregate supply curve implies that: 14 The aggregate supply curve (short-run): 15 The aggregate supply curve (short-run) is upsloping because: 16 In the above diagram, a shift from AS1 to AS3might be caused by a(n): 17 In the above diagram, a substantial appreciation of the Albanian Lek with no immediate change in the Albanian price level would result in a: 18 Which one of the following would increase per unit production cost and therefore shift the aggregate supply curve to the left? 19 Suppose that nominal wages fall and productivity rises in a particular economy. Other things equal, the aggregate: 20 The level of productivity in the above economy is: 21 If the price of each input is $5, the per-unit cost of production in the above economy is: 22 Refer to the above data. The equilibrium price level will be: 23 Refer to the above data. If the price level is 150 and producers supply $300 of real output: 24 Graphically, demand-pull inflation is shown as a: 25 Graphically, the full-employment, low-inflation, rapid-growth economy of the last half of the 1990s is depicted by a: 26 Refer to the above diagrams, in which AD1 and AS1 are the "before" curves and AD2 and AS2 are the "after" curves. A recession is depicted by: 27 Refer to the above diagrams, in which AD1 and AS1 are the "before" curves and AD2 and AS2 are the "after" curves. Cost-push inflation is depicted by: 28 Refer to the above diagrams, in which AD1 and AS1 are the "before" curves and AD2 and AS2 are the "after" curves. Other things equal, an increase in investment spending is depicted by: 29 Refer to the above diagrams, in which AD1 and AS1 are the "before" curves and AD2 and AS2 are the "after" curves. Other things equal, a decline in productivity is depicted by: 30 If aggregate demand decreases, and as a result, real output and employment decline but the price level remains unchanged, it is most likely that: 31 A rightward shift of the AD curve in the very steep upper part of the upsloping AS curve will: 32 A rightward shift of the AD curve in the very flat part of the upsloping AS curve will: 33 A decrease in aggregate demand will cause a greater decline in real output the: 34 Refer to the above diagram. If the aggregate supply curve shifted from AS0 to AS1, we could say that: 35. Refer to the above diagram. If aggregate supply is AS1 and aggregate demand is AD0, then: Which of the following will result in an increase in the money supply?Borrowing by the government from the Central Bank will increase the money supply in the economy, because it will be spent by the government on public.
Which of the following will cause an increase in the demand for money?An increase in GDP will increase the demand for money, because people will need more money to make the transactions necessary to buy a new GDP.
Which of the following will most likely result in an increase in aggregate demand?Aggregate demand will increase as a result of an increase in investment spending. Aggregate demand will increase as a result of an increase in exports.
Which of the following would most likely result in costCost-push inflation occurs when the supply of a good or service changes, but the demand for it stays the same. It occurs most often when a monopoly exists, wages increase, natural disasters occur, regulations are introduced, or exchange rates change.
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