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.Management Sciences
A. a decrease in the money supply
B. a drop-in oil prices
C. an increase in government spending on military equipment
D. None of these answers
E. an increase in price expectations
Related Mcqs:
- Which of the following statements about economic fluctuations is true ?
- A. None of these answers B. A depression is a mild recession C. A variety of spending income, and output measures can be used to measure economic fluctuation because most macroeconomic quantitties tend to fluctuate together D. A recession is when output rises above the natural rate of output...
- Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers allow the economy to adjust to the long run natural rate on its own, ?
- A. People will reduce their price expectations and the short run aggregate supply will shift right B. People will raise their price expectations and aggregate demand will shift left C. People will raise their price expectations and the short run aggregate supply will shift left D. People will reduce their price expectations and aggregate demand … Refers to Exhibit 4. Suppose the economy is operating in a recession such as point B in Exhibit 4. If policy makers allow the...
- Policy makers are said to “accommodate” an adverse supply shock if they ?
- A. fail to respond to the adverse supply shock and allow the economy to adjust on its own. B. respond to the adverse supply shock by decreasing aggregate demand which lower prices C. respond to the adverse supply shock by decreasing short run aggregate supply D. respond to the adverse supply shock by increasing aggregate … Policy makers are said to “accommodate” an adverse supply shock if they ?Read More...
- According to the interest rate effect aggregate demand slopes downward (negatively) because ?
- A. lower prices increase money holdings decrease lending interest rates rise, and investment spending falls B. lower prices increase the value of money holding and consumer spending increases C. lower prices decrease the value of money holdings and consumers spending decreases D. lower prices reduce money holdings increase lending interest rates fall, and investment spending … According to the interest rate effect aggregate demand slopes downward (negatively) because ?Read More...
- According to the wealth effect aggregate demand slopes downward (negatively) because ?
- A. lower prices increase the value of money holding and consumers spending increase B. lower prices decrease the value of money holding and consumers spending decrease C. lower prices reduce money holding increase lending, interest rates fall and investment spending increase D. lower prices increase money holding decrease lending, interest rates rise and investment spending … According to the wealth effect aggregate demand slopes downward (negatively) because ?Read More...
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