Macro Chapter 13 Quiz Questions and Answers (100% Correct Answers) Already Graded A+

Macro Chapter 13 Quiz Questions and
Answers (100% Correct Answers) Already
Graded A+
When the economy enters a recession, your employer is
___________ to reduce your wages because _______.

A.

likely; output prices always fall during recession

B.

unlikely; output and input prices generally fall during
recession

C.

likely; aggregate demand is vertical in the long run

D.

unlikely; lower wages reduce productivity and morale [
Ans: ] B

German luxury car exports were hurt in 2009 as a result of
the recession. How did this decrease in exports affect
Germany's aggregate demand curve?

A.

,The aggregate demand curve did not shift, but there was a
movement down the aggregate demand curve.

B.

The aggregate demand curve shifted to the right.

C.

The aggregate demand curve did not shift, but there was a
movement up the aggregate demand curve.

D.

The aggregate demand curve shifted to the left. [ Ans: ] D

Refer to the figure to the right. Ceteris paribus, a decrease
in government spending would be represented by a
movement from

A.

AD1

to AD2.

B.

AD2

to AD1.

, C.

point A to point B.

D.

point B to point A. [ Ans: ] B

Ceteris paribus, an increase in firms' expectations of the
future profitability of investment spending would be
represented by a movement from

A.

AD1

to AD2.

B.

AD2

to AD1.

C.

point A to point B.

D.

point B to point A. [ Ans: ] A