Macroeconomics

1 . Which of the following represent the three consequences of the decline in deal during the Great Depressiona . get back in prices , decline in output , and a surge in unemploymentb . rise in prices , decline in output , and a surge in unemploymentc . rise in prices , maturation in output , and a surge in unemploymentd . fall in prices , accession in output , and a surge in unemployment2 . The short-term amass translate slue is positively sloped because ______a . business wad suffer from money illusionb . wages are sticky or don t readily adjust to changes in economic conditions in the short runc . workers bearing about nominal wages , not real wagesd . of diminishing returns to labor3 . In the long run , the combine price take aim has ______a . no effect on the measuring rod of mix outputb . a positive effect on the criterion of entirety outputc . a prejudicious effect on the quantity of hoard up outputd . an impact on total output exclusively no impact on employment4 . Producing a short-run level of aggregate output that exceeds the economy s potential output results in _______a . a down(prenominal) adjustment in nominal wagesb . an up(a) adjustment in profits per unit of outputc . a downward adjustment in production costsd . an upward adjustment in nominal wages5 . According to the wealth effect , when prices decrease , the purchase power of assets ______a . decreases and consumer spending decreasesb . increases and consumer spending decreasesc . decreases and consumer spending increasesd . increases and consumer spending increases6 . An increase in government spending on health care is likely to shift the ______a . short-run aggregate supply curve to the soundb . short-run aggregate supply curve to the leftc . aggregate demand curve to the rightd . aggregate demand curve to the left7 . A negative short-run supply shock ______a . reduces aggregate output and increases the aggregate price levelb . increases aggregate output and reduces the aggregate price levelc .

reduces aggregate output and the aggregate price leveld . increases aggregate output and the aggregate price level8 . Suppose that the economy is in long-run macroeconomic equilibrium and aggregate demand increases . As the economy moves to short-run macroeconomic equilibrium , there is ______a . a recessionary crack with high inflationb . a recessionary gap with low inflationc . an inflationary gap with high unemploymentd . an inflationary gap with low unemployment9 . In the long run , inflationary and recessionary gaps are self-correcting because , lastly ______a . nominal wages rise and fall in to soaked an inflationary or a recessionary gapb . the government applies the right combination of fiscal and monetary policiesc . the multiplier compensates the negative supply or demand shocksd . nominal wages rise and fall in to close a recessionary gap or an inflationary gap10 . A increase in energy prices exit _______a . decrease short-run aggregate supplyb . decrease the quantity of aggregate output supplied in the short runc . decrease aggregate demandd . increase the...If you want to get a full essay, order it on our website: Ordercustompaper.com

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