Hello,

What do you think about my answers? Could you please someone check them?

My options are marked in bold and X in front.

QUESTION 18

The aggregate expenditure model is

most useful in explaining situations where changes in aggregate expenditures cause the price level to change

not useful in situations where changes in aggregate expenditures cause the price level to change

X helpful in explaining situations where the economy is plagued by inflationary pressures

the reciprocal of the aggregate demand model

most useful when we are dealing with an economy dominated by a foreign sector

QUESTION 20

The aggregate demand curve illustrates a relationship between

interest rates and income levels

X the price level and real GDP

the price level and interest rates

income levels and real GDP levels

income levels and nominal income levels

QUESTION 30

What is the effect of an increase in the price level?

The real value of dollar-denominated assets will rise.

The aggregate expenditure line will shift upward.

X The equilibrium level of output demanded will fall.

There will be downward movement along a particular aggregate demand curve.

The aggregate demand curve will shift rightward.

QUESTION 32

The simple spending multiplier is like

X having a bird in the hand rather than two in the bush

two wrongs making a right

the spreading of ripples from a stone thrown in a pond

getting too much of a good thing

having too many chefs in the kitchen

QUESTION 36

The oil price shock of the 1970's would be an example of a negative supply shock.

X True

False

QUESTION 38

The natural rate of unemployment includes frictional, cyclical, and structural unemployment.

X True

False

QUESTION 39

The long-run aggregate supply curve is vertical because potential real GDP is determined by resource availabilities and productivities.

X True

False

QUESTION 41

The expected price level is assumed to be constant along a given short-run aggregate supply curve.

True

X False

QUESTION 42

What is the effect of an increase in the price level?

The real value of dollar-denominated assets will rise.

The aggregate expenditure line will shift downward.

The equilibrium level of output demanded will rise.

There will be downward movement along a particular aggregate demand curve.

X The aggregate demand curve will shift rightward.

QUESTION 45

The slope of the aggregate expenditure line equals the marginal propensity to consume.

True

X False

QUESTION 50

Which of the following would shift the LRAS curve to the left?

an increase in the average workweek

an improvement in technology

X a civil war

a decrease in aggregate demand

accelerated depreciation allowances to encourage capital formation