1. In the AS-AD framework, LRAS represents______________________________.

a. None of the above

b. C + I + G + X - M at different price levels

c. the steady-state productive capacity of the economy based on the current production function and the supply of the factors of production

d. the short-run output of the economy at different price levels

e. the maximum output the economy can produce at any price level

2. We have now seen negative nominal interest rates for both government securities and corporate securities. What can contribute to the existence of negative nominal interest rates?

a. contractionary monetary policy

b. contractionary fiscal policy

c. high expected inflation and flight to safety

d. expected deflation and flight to safety

3. In the AS-AD framework, SRAS represents ______________________________.

a. none of the above

b. the steady-state productive capacity of the economy based on the current production function and the supply of the factors of production

c. inflation in the long run

d. the short-run output of the economy at different price levels

e. C + I + G + X - M

4. As part of the 2020 Federal PandemicUnemploymentCompensation program, unemployed claim filers receive an additional $600 per week in addition to their state benefit.

This is best described as ___________________ and is paid by __________________.

a. contractionary fiscal policy; the United States Treasury

b. contractionary monetary policy; the Federal Reserve

c. expansionary monetary policy; the Federal Reserve

d. expansionary fiscal policy; the United States Treasury

e. contractionary fiscal policy; the Federal reserve

f. expansionary monetary policy; the United States Treasury

5. As the global economy comes out of the COVID crisis, we are seeing many examples of problems in the global supply chain. In the AS-AD framework .... (Please choose the best answer.)

a. this would have no effect on LRAS as long as it is a temporary situation that does not harm the production function

b. this would actually cause LRAS to shift to the left because the production function cannot operate at full efficiency

c. this would keep LRAS from shifting to the right as output is necessarily lower than it would be otherwise

6. The AS-AD framework is best described as a tool for understanding ________________.

a. the inflation rate

b. the unemployment rate

c. exchange rate dynamics

d. long-term economic growth

e. short-term business cycles

f. productivity dynamics