Macro Chapter 13 Quiz Questions and
Answers (100% Correct Answers) Already
Graded A+
When the economy enters a recession, your employer is
___________ to reduce your wages because _______.
A.
likely; output prices always fall during recession
B.
unlikely; output and input prices generally fall during
recession
C.
likely; aggregate demand is vertical in the long run
D.
unlikely; lower wages reduce productivity and morale [
Ans: ] B
German luxury car exports were hurt in 2009 as a result of
the recession. How did this decrease in exports affect
Germany's aggregate demand curve?
A.
,The aggregate demand curve did not shift, but there was a
movement down the aggregate demand curve.
B.
The aggregate demand curve shifted to the right.
C.
The aggregate demand curve did not shift, but there was a
movement up the aggregate demand curve.
D.
The aggregate demand curve shifted to the left. [ Ans: ] D
Refer to the figure to the right. Ceteris paribus, a decrease
in government spending would be represented by a
movement from
A.
AD1
to AD2.
B.
AD2
to AD1.
, C.
point A to point B.
D.
point B to point A. [ Ans: ] B
Ceteris paribus, an increase in firms' expectations of the
future profitability of investment spending would be
represented by a movement from
A.
AD1
to AD2.
B.
AD2
to AD1.
C.
point A to point B.
D.
point B to point A. [ Ans: ] A
Answers (100% Correct Answers) Already
Graded A+
When the economy enters a recession, your employer is
___________ to reduce your wages because _______.
A.
likely; output prices always fall during recession
B.
unlikely; output and input prices generally fall during
recession
C.
likely; aggregate demand is vertical in the long run
D.
unlikely; lower wages reduce productivity and morale [
Ans: ] B
German luxury car exports were hurt in 2009 as a result of
the recession. How did this decrease in exports affect
Germany's aggregate demand curve?
A.
,The aggregate demand curve did not shift, but there was a
movement down the aggregate demand curve.
B.
The aggregate demand curve shifted to the right.
C.
The aggregate demand curve did not shift, but there was a
movement up the aggregate demand curve.
D.
The aggregate demand curve shifted to the left. [ Ans: ] D
Refer to the figure to the right. Ceteris paribus, a decrease
in government spending would be represented by a
movement from
A.
AD1
to AD2.
B.
AD2
to AD1.
, C.
point A to point B.
D.
point B to point A. [ Ans: ] B
Ceteris paribus, an increase in firms' expectations of the
future profitability of investment spending would be
represented by a movement from
A.
AD1
to AD2.
B.
AD2
to AD1.
C.
point A to point B.
D.
point B to point A. [ Ans: ] A
