Question 1

Explain whether FedEx's sales are likely to fluctuate more or less than the sales of each of the following firms as the economy moves from recession to expansion and back to recession.
Whirlpool Corporation (appliance manufacturer)
Taco Bell
The Boeing Company (aircraft manufacturer)
GameStop (video game sales and rentals)

Accepted Answer

FedEx's sales are likely to fluctuate du...

Question 2

The level of long-run aggregate supply is affected by all of the following except

Accepted Answer

A)  changes in the price level.
B)  changes in the technology.
C)  changes in the capital stock.
D)  changes in the number of workers.E) A) and D)
F) A) and C)

Question 3

Which of the following is not a reason why the wages of workers and the prices of inputs rise more slowly than the prices of final goods and services?

Accepted Answer

A)  Contracts make prices and wages "sticky."
B)  Firms are often slow to adjust wages.
C)  Menu costs make some prices sticky.
D)  Unions are successful in pushing up wages.E) C) and D)
F) A) and B)

Question 4

The basic aggregate demand and aggregate supply curve model helps explain ________ fluctuations in real GDP and the price level.

Accepted Answer

A)  short-term
B)  long-term
C)  both short-term and long-term
D)  unrelatedE) None of the above
F) A) and B)

Question 5

Inflation is generally the result of total spending growing faster than total production.

Accepted Answer

A) True 
 B)False

Question 6

The business cycle ________ on FedEx since the company's inception over 40 years ago.

Accepted Answer

A)  has had virtually no effect
B)  has always had a negative effect
C)  has had a large effect
D)  has always had a positive effectE) A) and B)
F) All of the above

Question 7

The basic aggregate demand and aggregate supply curve model helps explain

Accepted Answer

A)  short term fluctuations in real GDP and the price level.
B)  long term growth.
C)  price fluctuations in an individual market.
D)  output fluctuations in an individual market.E) B) and C)
F) All of the above

Question 8

The level of aggregate supply in the long-run is not affected by

Accepted Answer

A)  changes in technology.
B)  changes in the capital stock.
C)  changes in the price level.
D)  changes in the number of workers.E) B) and C)
F) All of the above

Question 9

Monetarists believe that the quantity of money should be increased at an increasing rate.

Accepted Answer

A) True 
 B)False

Question 10

Figure 15-2
 
-Refer to Figure 15-2.Ceteris paribus,a decrease in the expected future price level would be represented by a movement from

Accepted Answer

A)  SRAS₁ to SRAS₂.
B)  SRAS₂ to SRAS₁.
C)  point A to point B.
D)  point B to point A.E) B) and C)
F) A) and D)

Question 11

New Keynesian macroeconomic theory emphasizes the role of "sticky" prices in the economy.

Accepted Answer

A) True 
 B)False

Question 12

Inflation will

Accepted Answer

A)  increase aggregate demand.
B)  increase the quantity of real GDP demanded.
C)  decrease aggregate demand.
D)  decrease the quantity of real GDP demanded.E) All of the above
F) B) and D)

Question 13

Suppose the U.S.GDP growth rate is faster relative to other countries' GDP growth rates.This will

Accepted Answer

A)  move the economy up along a stationary aggregate demand curve.
B)  move the economy down along a stationary aggregate demand curve.
C)  shift the aggregate demand curve to the left.
D)  shift the aggregate demand curve to the right.E) A) and B)
F) A) and C)

Question 14

An increase in aggregate demand in the economy will have what effect on macroeconomic equilibrium in the long run?

Accepted Answer

A)  The price level will fall, and the level of GDP will rise.
B)  The price level will fall, and the level of GDP will fall.
C)  The price level will rise, and the level of GDP will fall.
D)  The price level will rise, and the level of GDP will be unaffected.E) None of the above
F) B) and D)

Question 15

________ of unemployment during ________ make it easier for workers to ________ wages.

Accepted Answer

A)  High levels; a recession; negotiate higher
B)  Low levels; an expansion; negotiate higher
C)  Low levels; a recession; accept lower
D)  High levels; an expansion; accept lowerE) B) and C)
F) A) and D)

Question 16

When the price level in the United States rises relative to the price level of other countries,________ will rise,________ will fall,and ________ will fall.

Accepted Answer

A)  imports; exports; net exports
B)  exports; imports; net exports
C)  net exports; exports; imports
D)  net exports; imports; exportsE) None of the above
F) B) and C)

Question 17

Explain why the long-run aggregate supply curve is vertical.

Accepted Answer

The long-run aggregate supply curve is v...

Question 18

The level of real GDP in the long run is called

Accepted Answer

A)  potential GDP.
B)  short-run GDP.
C)  frictional GDP.
D)  low-capacity GDP.E) C) and D)
F) B) and D)

Question 19

In the long run

Accepted Answer

A)  GDP = potential GDP.
B)  unemployment is below its natural rate.
C)  LRAS and SRAS lie on the same line.
D)  unemployment is above its natural rate.E) A) and B)
F) A) and C)

Question 20

According to the real business cycle model

Accepted Answer

A)  increases in aggregate demand raise GDP.
B)  increases in aggregate demand lower GDP.
C)  increases in aggregate demand do not affect GDP.
D)  increases in aggregate demand lower the price level.E) A) and D)
F) B) and C)

Exam 15: Aggregate Demand and Aggregate Supply Analysis

The level of long-run aggregate supply is affected by all of the following except

Correct Answer
verified

New Keynesian macroeconomic theory emphasizes the role of "sticky" prices in the economy.

Correct Answer
verified

Suppose the U.S.GDP growth rate is faster relative to other countries' GDP growth rates.This will

Correct Answer
verified

Which of the following is not a reason why the wages of workers and the prices of inputs rise more slowly than the prices of final goods and services?

Correct Answer
verified

Monetarists believe that the quantity of money should be increased at an increasing rate.

Correct Answer
verified

Explain why the long-run aggregate supply curve is vertical.

Correct Answer
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The long-run aggregate supply curve is v...
View Answer

An increase in aggregate demand in the economy will have what effect on macroeconomic equilibrium in the long run?

Correct Answer
verified

According to the real business cycle model

Correct Answer
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The business cycle ________ on FedEx since the company's inception over 40 years ago.

Correct Answer
verified

The level of real GDP in the long run is called

Correct Answer
verified

Inflation is generally the result of total spending growing faster than total production.

Correct Answer
verified

Figure 15-2 -Refer to Figure 15-2.Ceteris paribus,a decrease in the expected future price level would be represented by a movement from

Correct Answer
verified

Inflation will

Correct Answer
verified

Correct Answer
verified
FedEx's sales are likely to fluctuate du...
View Answer

When the price level in the United States rises relative to the price level of other countries, will rise, will fall,and will fall.

Correct Answer
verified

of unemployment during make it easier for workers to wages.

Correct Answer
verified

The basic aggregate demand and aggregate supply curve model helps explain

Correct Answer
verified

The level of aggregate supply in the long-run is not affected by

Correct Answer
verified

In the long run

Correct Answer
verified

The basic aggregate demand and aggregate supply curve model helps explain ________ fluctuations in real GDP and the price level.

Correct Answer
verified

Exam 15: Aggregate Demand and Aggregate Supply Analysis

The level of long-run aggregate supply is affected by all of the following except

Correct AnswerverifiedShow Answer

New Keynesian macroeconomic theory emphasizes the role of "sticky" prices in the economy.

Correct AnswerverifiedShow Answer

Suppose the U.S.GDP growth rate is faster relative to other countries' GDP growth rates.This will

Correct AnswerverifiedShow Answer

Which of the following is not a reason why the wages of workers and the prices of inputs rise more slowly than the prices of final goods and services?

Correct AnswerverifiedShow Answer

Monetarists believe that the quantity of money should be increased at an increasing rate.

Correct AnswerverifiedShow Answer

Explain why the long-run aggregate supply curve is vertical.

Correct AnswerverifiedThe long-run aggregate supply curve is v...View AnswerShow Answer

An increase in aggregate demand in the economy will have what effect on macroeconomic equilibrium in the long run?

Correct AnswerverifiedShow Answer

According to the real business cycle model

Correct AnswerverifiedShow Answer

The business cycle ________ on FedEx since the company's inception over 40 years ago.

Correct AnswerverifiedShow Answer

The level of real GDP in the long run is called

Correct AnswerverifiedShow Answer

Inflation is generally the result of total spending growing faster than total production.

Correct AnswerverifiedShow Answer

Figure 15-2 -Refer to Figure 15-2.Ceteris paribus,a decrease in the expected future price level would be represented by a movement from

Correct AnswerverifiedShow Answer

Inflation will

Correct AnswerverifiedShow Answer

Correct AnswerverifiedFedEx's sales are likely to fluctuate du...View AnswerShow Answer

When the price level in the United States rises relative to the price level of other countries,________ will rise,________ will fall,and ________ will fall.

Correct AnswerverifiedShow Answer

________ of unemployment during ________ make it easier for workers to ________ wages.

Correct AnswerverifiedShow Answer

The basic aggregate demand and aggregate supply curve model helps explain

Correct AnswerverifiedShow Answer

The level of aggregate supply in the long-run is not affected by

Correct AnswerverifiedShow Answer

In the long run

Correct AnswerverifiedShow Answer

The basic aggregate demand and aggregate supply curve model helps explain ________ fluctuations in real GDP and the price level.

Correct AnswerverifiedShow Answer

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The long-run aggregate supply curve is v...
View Answer

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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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FedEx's sales are likely to fluctuate du...
View Answer

When the price level in the United States rises relative to the price level of other countries, will rise, will fall,and will fall.

Correct Answer
verified

of unemployment during make it easier for workers to wages.

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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