Question

6. A positive supply shock causes A) falling average prices. B) decreased real GDP. C) increased...

6. A positive supply shock causes A) falling average prices. B) decreased real GDP. C) increased unemployment. D) stagflation. E) none of the above.

7. An increasing price level and increased unemployment rate most likely come from A) rising input prices. B) higher income taxes. C) lower interest rates. D) increases in the value of the Canadian dollar. E) improvements in technology.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
6. A persistent increase in the actual growth rate of real GDP in excess of the...
6. A persistent increase in the actual growth rate of real GDP in excess of the growth rate of potential real GDP likely will most result eventually in: (a) accelerating inflation; (b) a recession; (c) stagflation (rising inflation and falling real economic growth); (d) a looser monetary policy from the Federal Reserve. 7. For the most part, rising U.S. inflation is associated with: (a) a much stronger U.S. dollar in foreign exchange markets; (b) growth in aggregate demand at a...
During the Great Recession, consumer sentiment in the United States declined, leading to a decrease in...
During the Great Recession, consumer sentiment in the United States declined, leading to a decrease in consumer spending. Which of the following factors caused this decrease in consumer sentiment? a. an increase in tax rates b. a decrease in expected income c. a decrease in the money supply d. an increase in household wealth e. falling gasoline prices During the Great Depression, aggregate demand in the U.S. economy decreased. As a result, the unemployment rate _________ and the price level...
The Bush tax cuts a. held constant tax rates for the upper brackets and decreased tax...
The Bush tax cuts a. held constant tax rates for the upper brackets and decreased tax rates for lower income taxpayers. b. reduced tax rates for the upper brackets and increased tax rates for lower income taxpayers. c. reduced tax rates for the upper brackets and held constant tax rates for lower income taxpayers. d. Increased tax rates for the upper brackets and decreased tax rates for lower income taxpayers. e. reduced tax rates for the upper brackets and decreased...
11.   Demand-pull inflation occurs when the aggregate __________ curve shifts _______. A.   demand, right B.    demand, left C.    supply, right...
11.   Demand-pull inflation occurs when the aggregate __________ curve shifts _______. A.   demand, right B.    demand, left C.    supply, right D.   supply, left 12.   When the aggregate price level decreases, the resulting decrease in interest rates will most likely ___________ investment and _____________ consumption. A.   increase, increase B.    increase, decrease C.    decrease, increase D.   decrease, decrease 13.   The economy is operating at full capacity.  The long-run aggregate supply curve is __________.  In the long run, an increase in the aggregate price level will __________ output. A.   horizontal, increase B.    horizontal, not change C.    vertical, increase D.   vertical,...
Multiple questions: If Government spending decreases by $100, GDP will    a) increase by $500   b)...
Multiple questions: If Government spending decreases by $100, GDP will    a) increase by $500   b) fall by $500   c) fall by $400    d) increase by $900   e) fall by $900 If taxes increase by $100, GDP will    a) increase by $400   b) decrease by $400   c) rise by $500    d) fall by $600       e) not change Suppose that Congress reduced Government spending at the same time that the price of imported oil increased. This would...
            Growth rate of nominal GDP – Inflation rate   = a.         price level. b.         the growth...
            Growth rate of nominal GDP – Inflation rate   = a.         price level. b.         the growth rate of nominal GDP. c.         the growth rate of real GDP. d.         the growth rate of long-run trend GDP. e.         how much the economy contracts during a recession. 2.         The consumption category does not include purchases a.         of new cars made by consumers. b.         of entertainment services made by consumers. c.         of new clothing made by consumers. d.         of new houses made by consumers....
1 Which government fiscal policy is a negative supply shock? A) decreasing taxes B) decreasing transfer...
1 Which government fiscal policy is a negative supply shock? A) decreasing taxes B) decreasing transfer payments C) decreasing government spending D) increasing government spending E) none of the above 2 According to the Laffer Curve, raising the tax rate A) always increases total tax revenue. B) always decreases total tax revenue. C) does not change total tax revenue. D) increases or decreases total tax revenue, depending on the tax rate. E) taxes are a joke. 3. It is a...
According to classical macroeconomic theory, changes in the money supply affect nominal variables and real variables....
According to classical macroeconomic theory, changes in the money supply affect nominal variables and real variables. nominal variables, but not real variables. real variables, but not nominal variables. neither nominal nor real variables. The sticky-wage theory of the short-run aggregate supply curve says that when the price level rises more than expected, production is more profitable and employment rises. production is more profitable and employment falls. production is less profitable and employment rises. production is less profitable and employment falls....
Economic growth is defined as: a. the percent change in per capita income, or GDP b....
Economic growth is defined as: a. the percent change in per capita income, or GDP b. changes in technology c. the difference between the nominal and real GDP d. the percent change in prices, or GDP e. the decline in the unemployment rate Assume that both Japan’s and the United States’ average annual per capita GDP growth rates are 2 percent per year, and both countries began with an initial per capita GDP of $1,000. However, the United States has...
1) When discussing wages, incomes and interest rates you always want to focus on the ...........
1) When discussing wages, incomes and interest rates you always want to focus on the ........ when making comparisons. a. Nominal Value b. Real value c. both are needed d. none of the above 2) When there is a decrease in the interest rate you can expect to see a. increase in investment b. decrease in spending c. increase in savings d. both increase in investment and increase in savings 3. A decrease in the supply of oil ( an...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT