360 FINAL EXAM QUESTIONS
AND VERIFIED CORRECT
ANSWERS GRADED A+
[LATEST] 100% GUARANTEED
PASS
Factors that influenced planned investment spending include - CORRECT ANSWER-real interest
rates, financial frictions, emotional waves of optimism and pessimism
A decline in taxes ____________ consumer expenditure and shifts the ____________ curve to
the ____________, everything else held constant - CORRECT ANSWER-raises; IS; right
The upward slope of the MP curve indicates that - CORRECT ANSWER-the central bank raises
real interest rates when inflation rises.
An autonomous tightening of monetary policy - CORRECT ANSWER-shifts the monetary policy
curve upward
In deriving the aggregate demand curve a ________ inflation rate leads the central bank to
________ real interest rates, thereby ________ the level of equilibrium aggregate output. -
CORRECT ANSWER-higher; raise; lowering
Everything else held constant, an increase in government spending will cause - CORRECT
ANSWER-aggregate demand to increase
, ________ flexible wages and prices imply that the short-run aggregate supply curve is
________. - CORRECT ANSWER-More; steeper
Everything else held constant, if workers expect an increase in inflation, ____________
aggregate supply ____________ - CORRECT ANSWER-short-run; increases
Suppose the economy is producing at the natural rate of output. An incrase in consumer and
business confidence will cause ____________ in real GDP in the long run and ____________ in
inflation in the long run, everything else held constant. - CORRECT ANSWER-no change; an
increase
Suppose the economy is producing at the natural rate of output and the government passes
legislation that severely restricts a company's ability to reduce production costs via outsourcing.
Everything else held constant, this policy action will cause ________ in the unemployment rate
in the short run and ________ in inflation in the short run. - CORRECT ANSWER-an increase; an
increase
When the economy is hit by a negative demand shock and the central bank does not respond by
changing the autonomous component of monetary policy, then in the long run - CORRECT
ANSWER-Inflation will be lower AND output will be at its potential
Non activists of the policies believe that - CORRECT ANSWER-Wages and prices are very flexible
The self-correcting mechanism is very rapid
Government action is unnecessary
If a factor increases the demand for domestic goods relative to foreign goods, the domestic
currency will - CORRECT ANSWER-appreciate
If a factor decreases the demand for a domestic good, the domestic currency will - CORRECT
ANSWER-depreciate
AND VERIFIED CORRECT
ANSWERS GRADED A+
[LATEST] 100% GUARANTEED
PASS
Factors that influenced planned investment spending include - CORRECT ANSWER-real interest
rates, financial frictions, emotional waves of optimism and pessimism
A decline in taxes ____________ consumer expenditure and shifts the ____________ curve to
the ____________, everything else held constant - CORRECT ANSWER-raises; IS; right
The upward slope of the MP curve indicates that - CORRECT ANSWER-the central bank raises
real interest rates when inflation rises.
An autonomous tightening of monetary policy - CORRECT ANSWER-shifts the monetary policy
curve upward
In deriving the aggregate demand curve a ________ inflation rate leads the central bank to
________ real interest rates, thereby ________ the level of equilibrium aggregate output. -
CORRECT ANSWER-higher; raise; lowering
Everything else held constant, an increase in government spending will cause - CORRECT
ANSWER-aggregate demand to increase
, ________ flexible wages and prices imply that the short-run aggregate supply curve is
________. - CORRECT ANSWER-More; steeper
Everything else held constant, if workers expect an increase in inflation, ____________
aggregate supply ____________ - CORRECT ANSWER-short-run; increases
Suppose the economy is producing at the natural rate of output. An incrase in consumer and
business confidence will cause ____________ in real GDP in the long run and ____________ in
inflation in the long run, everything else held constant. - CORRECT ANSWER-no change; an
increase
Suppose the economy is producing at the natural rate of output and the government passes
legislation that severely restricts a company's ability to reduce production costs via outsourcing.
Everything else held constant, this policy action will cause ________ in the unemployment rate
in the short run and ________ in inflation in the short run. - CORRECT ANSWER-an increase; an
increase
When the economy is hit by a negative demand shock and the central bank does not respond by
changing the autonomous component of monetary policy, then in the long run - CORRECT
ANSWER-Inflation will be lower AND output will be at its potential
Non activists of the policies believe that - CORRECT ANSWER-Wages and prices are very flexible
The self-correcting mechanism is very rapid
Government action is unnecessary
If a factor increases the demand for domestic goods relative to foreign goods, the domestic
currency will - CORRECT ANSWER-appreciate
If a factor decreases the demand for a domestic good, the domestic currency will - CORRECT
ANSWER-depreciate
