Navigation » List of Schools » Glendale Community College » Economics » Econ 102 – Principles of Macroeconomics » Winter 2023 » Week 3 Reading Quiz Chs. 9 & 11
Below are the questions for the exam with the choices of answers:
Question #1
A The aggregate supply curve represents the relationship between the inflation rate and the total demand or real GDP in the macroeconomy.
B The aggregate supply curve represents the relationship between the inflation rate and the total output or real GDP in the macroeconomy.
C The aggregate supply curve represents the relationship between the price level and the potential output or GDP in the macroeconomy.
D The aggregate supply curve represents the relationship between the price level and the total output or real GDP in the macroeconomy.
Question #2
A Above the short run aggregate supply curve
B Upward sloping at the potential GDP level
C Vertical at the potential GDP level
D Downward sloping like the aggregate demand curve
Question #3
A The total supply of products determines the level of gross domestic product and the level of demand in the economy in the long run.
B The total demand for products determine the level of gross domestic product and may not equal the supply capacity of the economy in the short run.
C The total demand tends to rise above the total supply capacity in the short run which leads to recessions
D The total demand always equals the total supply capacity in the short run.
Question #4
A Throughout the economy, workers are using better equipment and output per hour is rising.
B The government has reduced its spending by more than 10% over the last 2 years
C Energy prices such as gas and electricity have increased rapidly throughout the country.
D Consumers are more confident and spending more than before.
Question #5
A Technology improvements lead to productivity gains
B A rise in imports from Europe
C The congress passes a new income tax cut.
D A decline in investors confidence causes investment to fall.
Question #6
A Identifies the equilibrium quantity and price for consumer goods
B Identifies the equilibrium GDP the economy will reach in the long run
C Identifies the potential GDP and price level as well as the gap between the price level and the inflation
D Identifies the equilibrium GDP and price level as well as the gap between the equilibrium GDP and the potential GDP
Question #7
A A federal government increase in spending.
B A general increase in energy and labor cost for businesses.
C A general decrease in labor cost for businesses.
D An increase in productivity.
Question #8
A In the long run, the demand for a $10 product generates the supply of a $10 product.
B In the long run, the production and sales of a $10 product generates $10 of income for someone and $10 of demand.
C In the short run, the production and sales of a $10 product generates $10 income for someone and $10 of demand.
D In the short run, the demand for a $10 product generates the supply of a $10 product.
Question #9
A The total spending in the economy will rise.
B The total spending in the economy will fall.
C The aggregate supply will fall and shift to the left.
D The aggregate demand will fall and shift to the left.
Question #10
A The Producer Price Index
B The GDP price index
C The International Pricing Index
D The Consumer Price Index
Question #11
A Helped those people on fixed incomes
B It helped creditors
C None because everybody is hurt by inflation
D It helped debtors
Question #12
A Less money would be needed to buy the same amount of goods, implying that the value of money drops
B More money would be needed to buy the same amount of goods, implying that the value of money drops
C Less money would be needed to buy the same amount of goods, implying that the value of money increases
D More money would be needed to buy the same amount of goods, implying that the value of money increases
Question #13
A -6.5%
B 10%
C 6.1%
D 6.5%
Question #14
A Measures the change in energy and food prices in the macroeconomy
B Measures the change in all prices of final products in the macroeconomy
C Measures the change in all inputs of production in the macroeconomy
D Measures the change in the cost of living for a typical US household