Question 1

1pts

An economist of the classical tradition would most likely hold all of the following views EXCEPT __________.

Group of answer choices

demand creates its own supply

an economy tends to full employment

government intervention is rarely needed

the aggregate supply curve is vertical in the long run

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Question 2

1pts

What does a long-run vertical AS curve imply?

Group of answer choices

full employment

unemployment

price changes

increased imports

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Question 3

1pts

A higher price level combined with less aggregate demand leads to all of the following EXCEPT __________.

Group of answer choices

a fall in the value of household assets

fewer net exports and more foreign imports

an increase in interest rates

a decrease in tax collections

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Question 4

1pts

The __________ is based on all the goods and services produced in the economy, which make it a current-weights index.

Group of answer choices

producer price index

consumer price index

GDP deflator

gross domestic product

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Question 5

1pts

When the jobs available in a market don't fit the skills of those looking for work, the economy is experiencing __________ unemployment.

Group of answer choices

frictional

voluntary

structural

cyclical

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Question 6

1pts

Many economists believe that the existence of unemployment compensation causes a(n) __________.

Group of answer choices

increase in the size of the labor force

lower full-time employment level

shorter search time between jobs

longer search time between jobs

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Question 7

1pts

The sum of a country's rent, wages, interest, profits, and proprietors' income make up its __________.

Group of answer choices

national income

assets

net national product

GDP

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Question 8

1pts

If the aggregate supply curve shifts to the right and the aggregate demand curve shifts to the left, what happens to the price level and real output?

Group of answer choices

The price level rises, and real output falls.

The price level rises, and real output rises.

The price level falls, but the effect on real output cannot be determined.

The price level rises, but the effect on real output cannot be determined.

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Question 9

1pts

Concerning the currency exchange rate, a higher price for the dollar will __________.

Group of answer choices

make foreign goods cheaper and U.S. goods more expensive

make foreign goods more expensive and U.S. goods cheaper

reduce U.S. imports

increase U.S. exports

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Question 10

1pts

This year Chicago's citizens have bought more goods and services than last year, which illustrates that Chicago's economy has experienced an increase __________.

Group of answer choices

in real total output

in real per capita output

in non-price-adjusted output

that brings it to equilibrium