Wen Li: Attempt 1 (d) 17,250 Question 8 (1 point) Saved An increase in aggregate demand in the economy will have what effect onmacroeconomic equilibrium in the long run? O a) The price level will be unaffected and the level of GDP will fall. O b) The price level will rise and the level of GDP will be unaffected. c) The price level will fall and the level of GDP will rise. O d) The price level will rise and the level of GDP will fall. Question 9 (1 point) Saved interest rate in the economy will have what effect on macroeconomicC) 15,200 O d) 15,800 Question 39 (1 point) Suppose the economy is at a short-run equilibrium GDP that lies above potential GDP. Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP? a) Output will increase. O b) Prices will decline. O c) Wages will rise. O d) Unemployment will decline. Question 40 (1 point) Saved Why does the short-run aggregate supply curve shift to the left in the long run, following an increase in aggregate demand?Oc) $300 billion O d) $480 billion Question 19 (1 point) Saved If the short-run aggregate supply decreases by more than the long-run aggregate supply, then, at the short-run equilibrium, O a) Unemployment will be equal to the natural rate of unemployment. O b) Output will be equal to its natural level. c) Output will be below its natural level. O d) Output will be above its natural level. Question 20 (1 point) SavedQuestion 1 (1 point) Saved Assets Liabilities Reserves $10,000 Deposits $100,000 Loans $90,000 If the required reserve ratio is 10 percent, O a) the bank can make more loans of $100,000. O b) the bank can make more loans of $90,000. O c) the bank at this point can make no more loans. O d) the bank is holding $10,000 as excess reserves.O d) government spending Question 6 (1 point) Saved In a small economy in 2016, aggregate expenditure was $900 million while GDP that year was $750 million. Which of the following can explain the difference between aggregate expenditure and GDP that year? O a) Aggregate expenditure is always less than GDP in developing countries. b) Firm investment in inventories was greater than anticipated in 2016. c) Firm investment in inventories was less than anticipated in 2016. O d) Aggregate expenditure is always less than GDP in developed countries. Question 7 (1 point) Saved If the consumption function is defined as C = 1,250 + 0.8Y, and Y = 20,000, what is the autonomous level of consumption expenditure?(c) The price level will fall and the level of GDP will rise. O d) The price level will rise and the level of GDP will fall. Question 9 (1 point) Saved An increase in interest rate in the economy will have what effect on macroeconomic equilibrium in the long run? ( a) The price level will fall, and the level of output will fall. O b) The price level will rise, and the level of output will fall. O c) The price level will rise, and the level of output will be equal to the natural level of output. d) The price level will fall, and the level of output will be unaffected. Question 10 (1 point) Saved To decrease the money supply, the Bank of Canada could wer the required reserve ratio
