Econ 102 - Principles of Macroeconomics » Spring 2023 » AS/AD Model Changes After the 1960s Quiz

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Question #1
Recessionary gaps usually lead to
A.   cyclical unemployment.
B.   structural unemployment.
C.   seasonal unemployment.
D.   frictional unemployment.
Question #2
The typical result of an adverse supply shock is
A.   rising output accompanied by accelerating inflation.
B.   rising output accompanied by decelerating inflation.
C.   falling output accompanied by decelerating inflation.
D.   falling output accompanied by accelerating inflation.
Question #3
The typical movement of the aggregate supply curve resulting from an increase in productivity is that it
A.   shifts inward.
B.   becomes steeper.
C.   shifts inward and becomes flatter.
D.   shifts outward.
Question #4
The principle way in which an economy self-corrects from an inflationary gap is through
A.   price level decreases, which stimulate production.
B.   disinflation, which maintains purchasing power.
C.   deflation, which increases purchasing power.
D.   inflation, which reduces purchasing power.
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.   becoming flatter.
C.   shifting inward.
D.   becoming more elastic.
Question #6
In spite of the fact that unemployment rates were at a 30-year low in 1996-2000, the United States economy also experienced
A.   declining inflation.
B.   balance of payments surpluses.
C.   large budget deficits.
D.   low growth.

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