Chapter 8: URGENT pls help

Question 1 (1 point) onsider the ADVAS model. Suppose there is a decrease in aggregate demand and, mullan counly, an increase in aggregate supply. The result will be a A rise in real GDP and a rise in the price level. HI on indeterminate change in real GDP and a rise in the price level 4) rise in real GDP and a fall in the price level. DJ an indeterminate change in real GOUP and a fall in the price level EJ rise in real GDP but price level changes will be indeterminate. Question 2 (1 point) Which of the following could cause a movement along the economy's 45 curvet A) a change in the price level HI a change in labour productivity 4) a change in the mage rats OU) a change in the cost of capital OH , change in technology Question 3 (1 point) Consider our ALMAS model with the economy starting in long-run equilibrium at a price level of 100. Autonom hormones by $5100 million. At a constant price level, this would cause aggregate demand to increase by $3/0 million. However, due to an upward sloping aggregate supply curve, prices the to a price level of 108, and actual GDP increases by $254 million. What is the multiplier in this economy! (Answer to one decimal point) Your Answer: Answer Question 4 (1 point) Aggregate supply shocks cause the price level and real GOP to change in Al apposite directions with price changing by less than output. OH) opposite directions but by the same amount. 2 4 opposite directions and not necessarily by the same amount. ( D) the same direction with price charging by more than output. OF the same direction and by the same amount. Question 5 (1 point) Consider the economy's aggregate supply curve. Other things bring equal, firma' amit costs will tend to increase if ) A) there is a reduction in the price of oil. OHI wages the. C the government reduces payroll taxes. DJ wage increases exceed productivity increases. E wage and price controls are in effect. Question 6 (1 point) Which of the following is implied by a rightward shift in the economy's AS curve? A) At any given price level, a lower level of output will be supplied. OH There is a decrease in aggregate supply. 0 4) The same output will be produced, but only at a higher price level ") There is a demand shock. OF) At any then price level, a higher level of output will be supplied. Question 7 (1 point) If the economy's AT curve is upward sloping, a negative shock to aggregate demand will result in A an increase in real GDP and no change in prices. ()HI an increase in both real GOP and prices. C) an increase in prices and no change in real GloP. ( ") a decrease in both real GDP and prices. OH) a decrease in prices but no change in mal GDP. Question 8 (1 point) Consider the ALMAS model in the short-run. All che equal, which of the following will had to an decrease in the price level and in real COP. a An increase in average wages. ) by) An increase in desired savings. () : An increase in government transfer payments. ment in production technology. On A decrease in the net tax rate.Question 9 /1 point) Which of the following would likely cause a downward parallel shift in the At curve and a leftward shift in the AU curve? O A a reduction in government purchases HI an increase in the business confidence of firms Of) an increase in the price level O U) a decrease in the price level O E) a decrease in the MPC Question 10 |1 point) When the economy's AScurve is positively doped, the multiplier in the ALIAS model A larger than the simple multiplier. HI caratant 4) smaler than the simple multiplier. O D) Equal to one. O B) squad to the simple multiplier. Question 11 (1 point) Consider the ALMAS model. In the short-run, an increase in factor prices for business will cause: a A fall in real GDP and an increase in the price level ()b) Neither real GUP nor the price level are affected. O c) An increase in real GOP and a fall in the price level. O d A fal in real GOP and in the price level O ) An increase in real GDP and the price level. Question 12 |1 point) Consider the basic ALMAS model. When wage rates rise faster than the increase in labour productivity, the O A AD curve shifts left. OHI 45 curve shifts upward. O CI output gap falls. O Ul cutput gap increases. ( E) AS curve shifts downward