Navigation » List of Schools » Glendale Community College » Economics » Econ 102 – Principles of Macroeconomics » Spring 2020 » iVAT Chapter 9 Part 2
Below are the questions for the exam with the choices of answers:
Question #1
A Cause the SAS curve to shift left.
B Cause aggregate demand to increase.
C Cause aggregate demand to decrease.
D Cause the AD curve to shift left.
Question #2
A Banks can increase lending to the real economy, which will cause the AD curve to shift right and the economy could go into an inflationary gap.
B The deflationary pressures can cause people to increase their spending in the economy. This can lead to an inflationary gap.
C Banks can stop lending to the real economy, which will cause the AD curve to shift left and the economy could remain or go into a recession.
D The deflationary pressures can cause people to decrease their spending in the economy. This can lead to an inflationary gap.
Question #3
A Expansionary monetary policy was not needed.
B Expansionary monetary policy as not only not necessary, but was also inadequate.
C Government spending after the Great Recession was inadequate and didn’t return us to potential output.
D Government spending after the Great Recession was adequate and did return us to potential output.
Question #4
Both Classical and Keynesian economists will always agree that potential output is a certain amount?
A TRUE
B FALSE
Question #5
A Expansionary monetary policy.
B A decrease in taxes.
C An increase in government spending.
D An increase in taxes.
Question #6
A Wages will increase; The price level increases and real output declines
B Wages will increase; The price level and real output increases
C Wages will decrease; The price level increases and real output declines
D Wages will decrease; The price level decreases and real output declines
Question #7
A The AD curve will shift to the right; The price level and real output will decrease
B The AD curve will shift to the left; The price level will increase and real output will decrease
C The AD curve will shift to the right; The price level and real output will increase
D The AD curve will shift to the left; The price level and real output will decrease
Question #8
A Wages will decline; The SAS curve will shift down, which causes the price level to drop and real output to increase
B Wages will decline; The SAS curve will shift up, which causes the price level and real output to decline
C Wages will increase; The SAS curve will shift down, which causes the price level to drop and real output to increase
D Wages will decline; The SAS curve will shift up, which causes the price level and real output to increase
