Question 1) A reduction in interest rates will shift __________

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Question 1)

A reduction in interest rates will shift __________.

  aggregate demand to the left

  aggregate demand to the right

  aggregate supply to the right

  aggregate supply to the left

 

 

Question 2

Monty owns an export/import firm in Brooklyn, New York. Last year, Monty’s firm experienced a surplus in its balance on goods and services. What does this mean for Monty?

  His inventory contained more exports than imports.

  His inventory contained more imports than exports.

  His purchases of imports from foreign markets were less than their purchases of his exports.

  His purchases of imports from foreign markets exceeded purchases of his exports by foreign markets.

 

 

Question 3

If the economy’s price level and Joan Smith’s nominal income increase by the same proportion, then Joan Smith’s real income __________.

  increases

  decreases

  remains unchanged

  cannot be determined

 

Question 4

An aggregate demand (AD) curve shows the quantity of __________.

  a single product that all consumers will buy at various prices, all else being equal

  total real output that all consumers in an economy will buy at various price levels

  a total of services that all consumers will buy at various prices, all else being equal

  total government products and services that all consumers will buy at various price levels

 

Question 5

By definition, nominal GDP is __________.

  uncorrected for inflation

  corrected for inflation

  real GDP minus interest payments

  always smaller than real GDP

 

Question 6

If U.S. Steel Corporation sells sheet metal for car doors to General Motors, the transaction will be counted in the national income accounts as __________.

  the sale of a producer good between two producers

  a business investment

  a temporary investment

  nothing; the sheet metal is an intermediate good

 

Question 7

Among the following, which group tends to be LEAST affected by inflation?

  those on fixed incomes

  the federal government

  lenders

  taxpayers

 

 

Question 8

Carla is listing her household assets on a household asset sheet. Which of the following should she NOT list?

  her checking account balance

  her used truck with trailer

  her cash on hand

  her mortgage

 

 

Question 9

One complete business cycle goes __________.

  from valley to summit or summit to valley

  through one contraction and one expansion

  from peak to peak or trough to trough

  through whatever time period the government allots to it

 

 

 

 

 

Question 10

Juan is temporarily between jobs while searching for a new one. This type of short-term unemployment is called __________ unemployment.

  frictional

  structural

  cyclical

  artificial