A.   Measures the change in all inputs of production in the macroeconomy

B.   Measures the change in all prices of final products in the macroeconomy

C.   Measures the change in energy and food prices in the macroeconomy

D.   Measures the change in the cost of living for a typical US household

A.   6.1%

B.   -6.5%

C.   10%

D.   6.5%

A.   Less money would be needed to buy the same amount of goods, implying that the value of money drops

B.   More money would be needed to buy the same amount of goods, implying that the value of money drops

C.   Less money would be needed to buy the same amount of goods, implying that the value of money increases

D.   More money would be needed to buy the same amount of goods, implying that the value of money increases

A.   Helped those people on fixed incomes

B.   It helped debtors

C.   It helped creditors

D.   None because everybody is hurt by inflation

A.   The GDP price index

B.   The Producer Price Index

C.   The Consumer Price Index

D.   The International Pricing Index

A.   The total spending in the economy will rise.

B.   The total spending in the economy will fall.

C.   The aggregate supply will fall and shift to the left.

D.   The aggregate demand will fall and shift to the left.

A.   In the short run, the production and sales of a $10 product generates $10 income for someone and $10 of demand.

B.   In the long run, the production and sales of a $10 product generates $10 of income for someone and $10 of demand.

C.   In the long run, the demand for a $10 product generates the supply of a $10 product.

D.   In the short run, the demand for a $10 product generates the supply of a $10 product.

A.   A general decrease in labor cost for businesses.

B.   A federal government increase in spending.

C.   An increase in productivity.

D.   A general increase in energy and labor cost for businesses.

A.   Identifies the equilibrium GDP the economy will reach in the long run

B.   Identifies the potential GDP and price level as well as the gap between the price level and the inflation

C.   Identifies the equilibrium quantity and price for consumer goods

D.   Identifies the equilibrium GDP and price level as well as the gap between the equilibrium GDP and the potential GDP

A.   A decline in investors confidence causes investment to fall.

B.   Technology improvements lead to productivity gains

C.   A rise in imports from Europe

D.   The congress passes a new income tax cut.

A.   Throughout the economy, workers are using better equipment and output per hour is rising.

B.   Consumers are more confident and spending more than before.

C.   The government has reduced its spending by more than 10% over the last 2 years

D.   Energy prices such as gas and electricity have increased rapidly throughout the country.

A.   The total demand always equals the total supply capacity in the short run.

B.   The total supply of products determines the level of gross domestic product and the level of demand in the economy in the long run.

C.   The total demand tends to rise above the total supply capacity in the short run which leads to recessions

D.   The total demand for products determine the level of gross domestic product and may not equal the supply capacity of the economy in the short run.

A.   Upward sloping at the potential GDP level

B.   Downward sloping like the aggregate demand curve

C.   Above the short run aggregate supply curve

D.   Vertical at the potential GDP level

A.   The aggregate supply curve represents the relationship between the inflation rate and the total demand or real GDP in the macroeconomy.

B.   The aggregate supply curve represents the relationship between the inflation rate and the total output or real GDP in the macroeconomy.

C.   The aggregate supply curve represents the relationship between the price level and the total output or real GDP in the macroeconomy.

D.   The aggregate supply curve represents the relationship between the price level and the potential output or GDP in the macroeconomy.