Question 1

Areal business cycleresults from shifts in aggregate __________ induced by __________.

A. Group of answer choices

B. demand; fiscal policy

supply; fiscal policy

C. demand; technological change

D. supply; technological change

Question 2

If AD is very steep and AS shifts to the left, then __________.

Group of answer choices

A. prices rise a lot, and output falls a little

B. prices rise a little, and output falls a lot

C. prices and output both rise a lot

D. prices and output both fall a little

Question 3

Some modern economists responded to supply-side economics with a politically liberal competing growth strategy known as __________ policy.

Group of answer choices

A. privatization

B. outsourcing

C. market force

D. industrial

Question 4

All but which one of the following will shift the long-run aggregate supply curve?

Group of answer choices

A. an increase in the money supply

B. an increase in capital

C. more and improved labor

D. more and better technological advances

Question 5

In the mid-1970s, when inflation rates rose rather quickly and surprisingly, what occurred?

Group of answer choices

A. Nominal wages and unemployment fell.

B. Real wages and employment rose.

C. Nominal wages and the value of personal assets rose.

D. Real wages and the value of personal assets fell.

Question 6

Which of the following men believed that "there is always a temporary trade-off between inflation and unemployment; there is no permanent trade-off"?

Group of answer choices

A. A. W. Phillips

B. Milton Friedman

C. Thomas Schelling

D. John M. Keynes

Question 7

According to monetarists, if the money supply expands, how are households most likely to respond?

Group of answer choices

A. They will spend it.

B. They invest lend it.

C. They will save it.

D. They will do nothing unless real income changes.

Question 8

One of the hypotheses of the simple Keynesian model states that __________.

Group of answer choices

A. market forces correct any problem

B. only long-run policy is possible

C. unemployment and inflation cannot exist at the same time

D. government decisions lead to instability

Question 9

The Great Recession occurred in __________.

Group of answer choices

A. 1929-1933

B. 1937-1939

C. 1953-1955

D. 2007-2009

Question 10

Regarding monetary policy, what is the Keynesian argument against the monetarists?

Group of answer choices

A. Money supply cannot be controlled.

B. Money supply is unaffected by the price level.

C. Velocity of money is not connected to monetary policy.

D. Velocity of money is neither very stable nor predictable.