Question 1 _______________________ are economists who generally emphasize the importance of aggregate supply in determin

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Question 1
_______________________ are economists who generally emphasizethe importance of aggregate supply in determining the size of themacroeconomy over the _____________.
Group of answer choices
Neoclassical economists; long run
Keynesian economists; short run
Neoclassical economists; short run
Keynesian economists; long run
Question 2
The maximum quantity that an economy can produce, given itsexisting levels of labor, physical capital, technology, andinstitutions, is called:
Group of answer choices
real GDP
aggregate demand
aggregate supply
potential GDP
Question 3
__________________ results when an economy experiences highunemployment and high inflation at the same time.
Group of answer choices
Reflation
Deflation
Recession
Stagflation
Question 4
Say’s Law argues that a given ____________________ must createan equivalent ________________________ somewhere else in theeconomy.
Group of answer choices
value of supply; value of demand
total qty of goods; price level for output
potential GDP; value of supply
natural rate of unemployment; full employment GDP
Flag question: Question 5
Potential GDP in the U.S. will be unaffected by____________________.
Group of answer choices
government institutions
unemployment rate
capital availability
technology
Question 6
Question 61 pts
Price Level
Aggregate Demand
Aggregate Supply
100
10,000
4,000
200
9,000
5,000
300
8,000
5,000
400
7,000
7,000
500
6,000
8,500
600
5,000
9,000
700
4,000
9,500
What is the equilibrium output?
Group of answer choices
7000
9000
8000
4000
Question 7
If the price level of what firms produce is rising across aneconomy, but the costs of production are constant, then:
Group of answer choices
higher profits will induce expanded production.
the maximum potential GDP will be exceeded.
increase in quantity produced won't be large.
a majority of industries will start running into limits.
Question 8
Aggregate demand curves slope downwards for each of thefollowing reasons EXCEPT
Group of answer choices
The wealth effect: As the price level falls, the buying power ofpeople’s savings increases and induces them to spend more.
The substitution effect: As the price level falls, people buymore of the cheaper goods and less of other goods.
The foreign price effect: As the price level falls, U.S. becomemore attractive to foreigners and domestic residents, increasingnet export spending.
The interest rate effect: As prices for outputs rise, it costsmore to make the same purchases, driving up the demand for money,raising interest rates and reducing investment spending.
Question 9
Which of the following must be present in order for theaggregate supply curve to form an upward slope?
Group of answer choices
the lure of higher profits to induce continued production
rise in aggregate quantity of supplied goods and services
constant price level for intermediate goods and services
fixed cost of inputs combined with rising prices for outputs
Question 10
Refer to the graph above. A government creating economic policyin these circumstances should be most concerned about:
Group of answer choices
inflation but not unemployment.
unemployment but not inflation.
inflation and unemployment.
neither inflation nor unemployment.
Question 11
The graph above reflects a significant increase in world oilprices. What will the impact on aggregate supply most likely leadto?
Group of answer choices
an increase in input prices
an increase in economic growth
less inflationary pressures
a decrease in the natural unemployment rate
Question 12
The graph above refers to a significant increase in oil prices.Which of the following is likely to result?
Group of answer choices
a rise in inflation from 2.0% to 3.0%
short run economic gains
long run economic losses
none of these
Question 13
The graph above refers to a significant increase in individualincome taxes, taking them to their highest level in 50 years. Whichof the following is likely to result?
Group of answer choices
unemployment may rise
lower inflationary pressure
natural unemployment will likely fall
short run increase in economic growth
Question 14
Price Level
Aggregate Demand
Aggregate Supply
200
10,000
4,000
300
9,000
6,000
400
8,000
8,000
500
7,000
9,000
600
6,000
9,500
700
5,000
9,800
800
4,000
9,900
If input prices rise and AS shifts to the left by 2,000 units ateach price level, what output level will equal the new equilibriumprice?
Group of answer choices
8000
2000
6000
7000
Question 15
As the aggregate price level in an economy decreases,
Group of answer choices
investment decreases
consumer demand decreases
imports decrease
all of these