Economics Chapter 14 Answers - 994 Words

Question 1 1 out of 1 points According to the aggregate demand and aggregate supply model, in the long run what is the impact of an increase in the money supply? Answer Selected Answer: It leads to increased price level, but there is no change in real GDP. Correct Answer: It leads to increased price level, but there is no change in real GDP. Question 2 1 out of 1 points Which of the following would make the price level decrease and real GDP increase? Answer Selected Answer: Long-run aggregate supply shifts right. Correct Answer: Long-run aggregate supply shifts right. Question 3 0 out of 1 points According to the sticky wage theory, which of the following†¦show more content†¦What are the effects of this decrease in wealth? Answer Selected Answer: a decrease in consumption, shown as a movement to the left along a given aggregate demand curve Correct Answer: a decrease in consumption, which shifts the aggregate demand curve to the left Question 3 1 out of 1 points Assuming that a is positive, how are theories of short-run aggregate supply expressed mathematically? Answer Selected Answer: quantity of output supplied = natural rate of output + a(actual price level – expected price level) Correct Answer: quantity of output supplied = natural rate of output + a(actual price level – expected price level) Question 4 0 out of 1 points Why does a decrease in the price level induce an increase in the aggregate quantity of goods and services demanded? Answer Selected Answer: because as wealth rises, interest rates rise, and the dollar appreciates Correct Answer: because as wealth rises, interest rates fall, and the dollar depreciates Question 5 0 out of 1 points Consider the exhibit below for the following questions. Figure 14-1 Refer to Figure 14-1. How would an increase in the money supply move the economy in the short and long run? Answer Selected Answer: From C to B in the short run and the long run. Correct Answer: From C toShow MoreRelatedEcon 2301 Study Guide1079 Words   |  5 Pageswill make students more informed citizens and allow them to follow the debates over national economic policy reported in the media. This course is also a foundation course that will prepare students to be successful in upper division finance, marketing, business administration, economics, government and social work courses. Common Course Objectives / Student Outcomes As established by the Department of Economics, students who complete this course will be able to understand: - the meaning of unemploymentRead MoreBusi 620 Qct 11020 Words   |  5 Pages --From the end-of-chapter discussion questions (DQ) and problems (P) --6.7 points each for a total of 80 points Salvatore’s Chapter 1: a. Discussion Questions: 9 Answer: Normal return is the minium profit that is required to cover the costs of inputs and all of expenses associated with it. Economic profit is a forgone profit and not and economic profit which is the biggest difference between the two types of profits. The difference between economic profit and businessRead MoreEfficient Market Hypothesis1521 Words   |  7 PagesChapter 13 Efficient Market Hypothesis Road Map Part A Introduction to Finance. Part B Valuation of assets, given discount rates. Part C Determination of discount rates. 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