Question

1. Which of the following will shift the aggregate supply curve downward (literally downward; essentially the same as a rightward shift)?

Group of answer choices

a. Technological changes that improve worker productivity

b. Increases in consumer spending

c. An increase in world oil prices

d. Bad weather, which increases farmers’ costs per unit of output

e. An increase in the price level

2. Which of the following is not a responsibility of the Federal Reserve?

Group of answer choices

a. controlling the money supply

b. supervising banks

c. enacting monetary policy

d. printing paper currency

e. acting as a bank for banks (e.g. lender of last resort)

3. Which of the following would cause the real interest rate to be negative?

Group of answer choices

a. When the nominal interest rate is equal to the inflation rate

b. When the nominal interest rate is greater than the inflation rate

c. When the nominal interest rate is smaller than the inflation rate

d. When the nominal interest rate is smaller than the rate of deflation

e. When the nominal interest rate is greater than the rate of deflation

4. Which of the following Federal Government budget items is classified as Discretionary Spending?

Group of answer choices

a. Net Interest

b. National Defense

c. Social Security Benefits

d. more than one of these answers are correct

e. Maintaining interstate highways

PLEASE ANSWER ALL 4 MULTIPLE CHOICES LIKE CHEGG ALLOWS I DONT WANT TO MARK INCOMPLETE

Answer 1

1) option a)

If technology improves, then for a given price, more output could be produced, so AS will shift to right downwards

If oil price rise, or bad weather, then AS shifts upwards

If consumer spending rise, AS unchanged, AD shifts right

If P changes, no shifting, only movement along the curve

2) option d)

Printing Currency is not Fed responsibility

3) option c)

Real Interest rate r = Nominal interest rate, i - inflation rate , π

So r is negative if π>i

4) option d)

Discretionary spending is Govt Spending on national defence, transportation

So b & e are true,

Hence two answers correct