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 price level and the potential output or GDP in the macroeconomy.
B The aggregate supply curve represents the relationship between the inflation rate and the total demand or real GDP in the macroeconomy.
C The aggregate supply curve represents the relationship between the price level and the total output or real GDP in the macroeconomy.
D The aggregate supply curve represents the relationship between the inflation rate and the total output or real GDP in the macroeconomy.
Question #2
A Vertical at the potential GDP level
B Downward sloping like the aggregate demand curve
C Upward sloping at the potential GDP level
D Above the short run aggregate supply 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 tends to rise above the total supply capacity in the short run which leads to recessions
C The total demand always equals the total supply capacity in the short run.
D 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.
Question #4
A Consumers are more confident and spending more than before.
B Throughout the economy, workers are using better equipment and output per hour is rising.
C Energy prices such as gas and electricity have increased rapidly throughout the country.
D The government has reduced its spending by more than 10% over the last 2 years
Question #5
A Technology improvements lead to productivity gains
B The congress passes a new income tax cut.
C A rise in imports from Europe
D A decline in investors confidence causes investment to fall.
Question #6
A Identifies the potential GDP and price level as well as the gap between the price level and the inflation
B Identifies the equilibrium GDP the economy will reach in the long run
C Identifies the equilibrium quantity and price for consumer goods
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 decrease in labor cost for businesses.
C An increase in productivity.
D A general increase in energy and labor cost for businesses.
Question #8
A In the short run, the demand for a $10 product generates the supply of a $10 product.
B In the long run, the demand for a $10 product generates the supply of a $10 product.
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 long run, the production and sales of a $10 product generates $10 of income for someone and $10 of demand.
Question #9
A The total spending in the economy will rise.
B The aggregate demand will fall and shift to the left.
C The total spending in the economy will fall.
D The aggregate supply will fall and shift to the left.
Question #10
A The International Pricing Index
B The Producer Price Index
C The Consumer Price Index
D The GDP price index
Question #11
A None because everybody is hurt by inflation
B It helped debtors
C It helped creditors
D Helped those people on fixed incomes
Question #12
A More money would be needed to buy the same amount of goods, implying that the value of money increases
B Less money would be needed to buy the same amount of goods, implying that the value of money increases
C More money would be needed to buy the same amount of goods, implying that the value of money drops
D Less money would be needed to buy the same amount of goods, implying that the value of money drops
Question #13
A 10%
B 6.1%
C 6.5%
D -6.5%
Question #14
A Measures the change in the cost of living for a typical US household
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 energy and food prices in the macroeconomy