Navigation » List of Schools » Glendale Community College » Economics » Econ 102 – Principles of Macroeconomics » Winter 2023 » Week 4 Reading Quiz Chs. 12 and 13
Below are the questions for the exam with the choices of answers:
Question #1
A The government should implement the COLA to improve the economy
B The government should keep inflation low and maintain low tax levels over the long run.
C The government should set up and regulate wages and unions, and set price floors and ceilings for specific fundamental goods.
D The government should increase production output through regulating sales of resources and strictly monitor exports and imports.
Question #2
A demand; long-run
B demand; short-run.
C supply; long-run
D supply; short-run.
Question #3
A The quantity of output that the economy can produce when it is at less than potential employment of its resources.
B The macro equilibrium
C The quantity of output that the economy can produce when it is above the natural rate of unemployment.
D The quantity of output that the economy can produce when it is at full employment of its labor and physical capital.
Question #4
A Downward sloping
B Upward sloping
C Horizontal
D Vertical
Question #5
A Prices
B Inflation
C Wages
D Quantity of output
Question #6
A long-run determinants of output and employment
B Short-term fluctuations caused by technological change and labor force growth
C Immediate determinants like changes in hiring and firing
D Intermediate aspects of taxes and spending
Question #7
A All goods supplied will be demanded at an unchanged price.
B Cyclical Unemployment might occur temporarily
C Unemployment will never happen
Question #8
A Prices would increase, and the economy would return to its long-term growth trend.
B Investment and government demand would increase, and the economy would return to its long-term growth trend
C Wages would increase, and the economy would return to its long-term growth trend.
D Prices would decrease, and the economy would return to its long-term growth trend.
Question #9
A An increase in the aggregate price level.
B Downward pressure on the price level.
C A rise in the level of output.
D A decline in the level of output
Question #10
A it will raise unemployment.
B It reduces aggregate output.
C flexible prices will eventually choke off any increase in aggregate demand.
D it will dis-incentivize production.
Question #11
A a decrease in military spending
B increase in spending by the government on health care
C decrease in spending by government on health care
D an increase in military spending
Question #12
A 16.66
B 42
C 3.6
D 36
Question #13
A is producing at its potential GDP.
B is producing at a point where output is less than potential GDP.
C is producing at its equilibrium point.
D is producing at a point where output is more than potential GDP.
Question #14
A 3.37
B 9.89
C 3.59
D 5.23
Question #15
A a decrease in interest rates
B an increase in domestic investment
C a major trading partner’s economic slowdown
D a decrease in a major trading partners export prices
Question #16
A depression
B natural rate of unemployment
C excess supply
D coordinated wage reductions
Question #17
A labor demand shifts to the right, if wages are flexible.
B labor demand shifts to the left, if wages are flexible.
C labor supply shifts to the left, if wages are flexible.
D labor supply shifts to the right, if wages are flexible.
Question #18
A labor demand shifts to the left, if wages are flexible.
B labor demand shifts to the right, if wages are flexible.
C labor supply shifts to the right, if wages are flexible,
D labor supply shifts to the left, if wages are flexible.
Question #19
A an increase in government spending will cause the aggregate demand curve to shift to the left.
B an increase in government spending will cause the aggregate demand curve to shift to the left.
C people can afford a high level of government services.
D prices and wages are sticky and do not adjust rapidly.