Econ 101 Midterm #2(100% Everfree answers)
The study of aggregate economic activity for the economy as a whole is correct answers
Macroeconomics
According to classical theory, flexible wages and prices allow correct answers a laissez-faire
economy to adjust to shifts in aggregate
demand
According to the classical view, if consumer demand slowed down prices would correct answers
decrease and the economy would return to its long-term growth trend
Unlike the Classical economists, Keynes asserted that: correct answers The economy was
inherently unstabl
The government can "prime the pump" by doing all of the following: correct answers Buying
more output.
Employing more people.
Making more money available
According to Keynes, which of the following can be used to slowdown an overheated
economy? correct answers Decrease government purchases
Which of the following is true about business cycles in the United States? correct answers They
vary greatly in length, frequency, and intensity
A decline in total output for two or more consecutive quarters is referred to as: correct answers A
recession
A recession can be represented by a point: correct answers Inside the production possibilities
curve
In which of the following situations is the percentage change in real GDP always positive?
correct answers Growth recession
Which of the following is generally considered a desirable outcome of government
intervention? correct answers More job
Determinants of macro performance work on macro outcomes through: correct answers
Aggregate supply and demand
The aggregate demand curve is downward-sloping because, other things being equal: correct
answers People buy more goods and services at lower average prices
A positively sloped aggregate supply curve reflects correct answers The rising costs associated
with increased capacity utilization.
, The unique situation in which the behavior of buyers and sellers is compatible is referred to
as correct answers Macro equilibrium
If aggregate demand decreases and aggregate supply decreases, the level of real output will:
correct answers Decrease, but the price level may increase, decrease, or stay the same
Which of the following would result if the price level were below the equilibrium level? correct
answers Consumers would bid prices up by competing for goods currently in shortag
Alternating periods of economic growth and contraction are: correct answers The result of
recurrent shifts of aggregate demand and aggregate supply
Which combination of shifts of aggregate demand and supply would definitely cause an
increase in real GDP correct answers Demand shifts to the right and supply shifts to the righ
Keynesian levers would include: correct answers Fiscal policy
When the AS curve is vertical, increases in AD will: correct answers Increase the average price
level but have no impact on unemployment
Aggregate demand is the total quantity of output correct answers Demanded if the economy is in
equilibrium
The combination of price level and real output that is compatible with both aggregate
demand and aggregate supply is the definition of: correct answers Equilibrium
Consumption expenditures correct answers Account for over two-thirds of total spending
Which of the following forces did Keynes assert had the strongest influence on consumption
decisions? correct answers Disposable income
If the MPC is 0.60 and disposable income increases from $20,000 billion to $22,000 billion,
then consumption will increase by correct answers $1,200 billion
The MPC indicates the portion of correct answers An additional dollar of income that will be
spent
The consumption function implies that: correct answers Consumption increases as disposable
income increases
If autonomous consumption decreases, then correct answers The AD curve will shift to the left
With respect to the aggregate demand curve, improved consumer confidence would: correct
answers Shift the curve rightward
If the availability of credit increases, then correct answers The AD curve will shift to the right
The study of aggregate economic activity for the economy as a whole is correct answers
Macroeconomics
According to classical theory, flexible wages and prices allow correct answers a laissez-faire
economy to adjust to shifts in aggregate
demand
According to the classical view, if consumer demand slowed down prices would correct answers
decrease and the economy would return to its long-term growth trend
Unlike the Classical economists, Keynes asserted that: correct answers The economy was
inherently unstabl
The government can "prime the pump" by doing all of the following: correct answers Buying
more output.
Employing more people.
Making more money available
According to Keynes, which of the following can be used to slowdown an overheated
economy? correct answers Decrease government purchases
Which of the following is true about business cycles in the United States? correct answers They
vary greatly in length, frequency, and intensity
A decline in total output for two or more consecutive quarters is referred to as: correct answers A
recession
A recession can be represented by a point: correct answers Inside the production possibilities
curve
In which of the following situations is the percentage change in real GDP always positive?
correct answers Growth recession
Which of the following is generally considered a desirable outcome of government
intervention? correct answers More job
Determinants of macro performance work on macro outcomes through: correct answers
Aggregate supply and demand
The aggregate demand curve is downward-sloping because, other things being equal: correct
answers People buy more goods and services at lower average prices
A positively sloped aggregate supply curve reflects correct answers The rising costs associated
with increased capacity utilization.
, The unique situation in which the behavior of buyers and sellers is compatible is referred to
as correct answers Macro equilibrium
If aggregate demand decreases and aggregate supply decreases, the level of real output will:
correct answers Decrease, but the price level may increase, decrease, or stay the same
Which of the following would result if the price level were below the equilibrium level? correct
answers Consumers would bid prices up by competing for goods currently in shortag
Alternating periods of economic growth and contraction are: correct answers The result of
recurrent shifts of aggregate demand and aggregate supply
Which combination of shifts of aggregate demand and supply would definitely cause an
increase in real GDP correct answers Demand shifts to the right and supply shifts to the righ
Keynesian levers would include: correct answers Fiscal policy
When the AS curve is vertical, increases in AD will: correct answers Increase the average price
level but have no impact on unemployment
Aggregate demand is the total quantity of output correct answers Demanded if the economy is in
equilibrium
The combination of price level and real output that is compatible with both aggregate
demand and aggregate supply is the definition of: correct answers Equilibrium
Consumption expenditures correct answers Account for over two-thirds of total spending
Which of the following forces did Keynes assert had the strongest influence on consumption
decisions? correct answers Disposable income
If the MPC is 0.60 and disposable income increases from $20,000 billion to $22,000 billion,
then consumption will increase by correct answers $1,200 billion
The MPC indicates the portion of correct answers An additional dollar of income that will be
spent
The consumption function implies that: correct answers Consumption increases as disposable
income increases
If autonomous consumption decreases, then correct answers The AD curve will shift to the left
With respect to the aggregate demand curve, improved consumer confidence would: correct
answers Shift the curve rightward
If the availability of credit increases, then correct answers The AD curve will shift to the right
