Macroeconomics Midterm Updated Questions and
Verified Answers/ Complete Solutions with Rationales
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Terms in this set (54) Questions Correct Answers
1) Our aggregate demand - aggregate supply graph negatively
has a conventional, _________________ sloped
demand curve.
2) Prices adjust in the _________________ run, medium; short
but not in the _________________ run.
3) The medium run supply curve is vertical
_________________.
4) The short run supply curve is horizontal
_________________.
5) When demand changes, in the short run firms output; employment
respond by changing ______________ and
______________.
6) tells us how much the economy can produce natural rate
, without increasing prices
7) If we are at the natural rate, an increase in boom; inflation
demand will cause a ___________ and
___________.
8) If we start at the natural rate, a decrease in recession; deflation
demand results in ______________ and
______________.
9) The IS curve represents equilibrium in the goods
__________ market.
10) We move along the IS curve when changes in i; Y
____________ cause changes in ___________.
11) What are three things that happen when i borrowing costs rise, demand
increases? for investment goods falls,
output falls
12) The IS curve shifts when _____________ any other factor
changes the demand for goods and equilibrium
output.
13) What are five examples of things that cause the increase in consumer
IS curve to shift? confidence, increase in
investor confidence, tax cut,
increase in G, tax break for
firms that invest in plant and
equipment
Verified Answers/ Complete Solutions with Rationales
|Get It 100% Accurate!! Already Passed!!
Terms in this set (54) Questions Correct Answers
1) Our aggregate demand - aggregate supply graph negatively
has a conventional, _________________ sloped
demand curve.
2) Prices adjust in the _________________ run, medium; short
but not in the _________________ run.
3) The medium run supply curve is vertical
_________________.
4) The short run supply curve is horizontal
_________________.
5) When demand changes, in the short run firms output; employment
respond by changing ______________ and
______________.
6) tells us how much the economy can produce natural rate
, without increasing prices
7) If we are at the natural rate, an increase in boom; inflation
demand will cause a ___________ and
___________.
8) If we start at the natural rate, a decrease in recession; deflation
demand results in ______________ and
______________.
9) The IS curve represents equilibrium in the goods
__________ market.
10) We move along the IS curve when changes in i; Y
____________ cause changes in ___________.
11) What are three things that happen when i borrowing costs rise, demand
increases? for investment goods falls,
output falls
12) The IS curve shifts when _____________ any other factor
changes the demand for goods and equilibrium
output.
13) What are five examples of things that cause the increase in consumer
IS curve to shift? confidence, increase in
investor confidence, tax cut,
increase in G, tax break for
firms that invest in plant and
equipment
