Econ 102 - Principles of Macroeconomics » Fall 2022 » AS AD Model Changes After the 1960s Quiz

Need help with your exam preparation?

Existing Quiz Clients Login here
Question #1
Recessionary gaps usually lead to
A.   cyclical unemployment.
B.   seasonal unemployment.
C.   frictional unemployment.
D.   structural unemployment.
Question #2
Which of the following is evidence of an inflationary gap?
A.   very low unemployment rates
B.   very long lines at employment agencies
C.   very short waiting times for product delivery
D.   very low sales figures
Question #3
For most firms in the economy, the largest part of factor cost is the cost of
A.   capital.
B.   property and machinery.
C.   land and natural resources.
D.   labor.
Question #4
An inflationary gap exists when consumers
A.   and businesses are purchasing less than the economy is capable of producing.
B.   are saving more than businesses are investing.
C.   and businesses are demanding less than the full employment level of output.
D.   and businesses are demanding more than the economy is capable of producing.
Question #5
As a result of the war in Afghanistan, the population of Afghanistan as well as their capital stock was reduced. This can be illustrated by aggregate supply curve
A.   shifting outward.
B.   shifting inward.
C.   becoming more elastic.
D.   becoming flatter.
Question #6
The existence of an inflationary gap would tend to benefit most
A.   stock owners.
B.   retired persons.
C.   bankers.
D.   unemployed workers.
Question #7
The combination of high unemployment and high inflation is termed
A.   stagflation
B.   unflation.
C.   depression
D.   reflation.
Question #8
Educational reforms that result in improved reading and math skills of high school graduates as they enter the labor force would do what to the aggregate supply curve?
A.   Move the economy up along the curve.
B.   Move the economy down along the curve.
C.   Shift it inward.
D.   Shift it outward.
Question #9
If the price level increases, what will happen to the level of real GDP supplied?
A.   It will usually increase.
B.   It will decrease at first then increase.
C.   It will decrease.
D.   Nothing.
Question #10
In spite of the fact that unemployment rates were at a 30-year low in 1996-2000, the United States economy also experienced
A.   balance of payments surpluses.
B.   low growth.
C.   large budget deficits.
D.   declining inflation.

Need help with your exam preparation?

Existing Quiz Clients Login here