ECON 104 Bille Goffe Final Exam
Questions Reviewed And Revised With
Correct Answers
The aggregate demand curve shows the relationship between ______ and
_________
price level and the quantity of real GDP demanded
these are Positive additions to Household wealth
1,000 shares of Microsoft stock, balance in your checking account, equity in
one's home
which of the following best describes Interest rate effect
an increase in price level raises the interest rate and chokes off investment and
consumption spending
the level of long-run aggregate supply is affected by
changes in technology, changes in number of workers, changes in capital stock
The level of real GDP in the long run is
potential GDP
how does technology change the short run supply curve
to the right
Increase in inflation expectations shifts SRAS
to the left
A rapid increase in price of oil will shift
short run aggregate supply to the left
, Stagflation is often a result of
a negative supply shock
A reason for the decrease in AD that led to the recession 2007 to 2009
the end of the housing bubble
What describes the automatic mechanism through which the economy
adjusts to long run equilibrium?
the rightward shift of SRAS curve that occurs after a recession
Wages of workers and the prices of inputs rise more slowly than final
goods/services because
firms are often slow to adjust to wages, menu costs make some prices sticky,
contracts make prices and wages sticky
A barter economy
where goods/services are exchanged for other goods/services
when are willing to accept it in exchange for goods/services sellers
medium of exchange
a way of measuring value in the economy in terms of money ex "this
laptop costs $1220"
unit of account
Store of Value
holding on to something for the future
Standard of Deferred Payment
A property of an item that makes it desirable for use as a means of setting debts
maturing in the future; an essential property of money
M1 includes
Questions Reviewed And Revised With
Correct Answers
The aggregate demand curve shows the relationship between ______ and
_________
price level and the quantity of real GDP demanded
these are Positive additions to Household wealth
1,000 shares of Microsoft stock, balance in your checking account, equity in
one's home
which of the following best describes Interest rate effect
an increase in price level raises the interest rate and chokes off investment and
consumption spending
the level of long-run aggregate supply is affected by
changes in technology, changes in number of workers, changes in capital stock
The level of real GDP in the long run is
potential GDP
how does technology change the short run supply curve
to the right
Increase in inflation expectations shifts SRAS
to the left
A rapid increase in price of oil will shift
short run aggregate supply to the left
, Stagflation is often a result of
a negative supply shock
A reason for the decrease in AD that led to the recession 2007 to 2009
the end of the housing bubble
What describes the automatic mechanism through which the economy
adjusts to long run equilibrium?
the rightward shift of SRAS curve that occurs after a recession
Wages of workers and the prices of inputs rise more slowly than final
goods/services because
firms are often slow to adjust to wages, menu costs make some prices sticky,
contracts make prices and wages sticky
A barter economy
where goods/services are exchanged for other goods/services
when are willing to accept it in exchange for goods/services sellers
medium of exchange
a way of measuring value in the economy in terms of money ex "this
laptop costs $1220"
unit of account
Store of Value
holding on to something for the future
Standard of Deferred Payment
A property of an item that makes it desirable for use as a means of setting debts
maturing in the future; an essential property of money
M1 includes
