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.   seasonal unemployment.
B.   frictional unemployment.
C.   cyclical unemployment.
D.   structural unemployment.
Question #2
The typical result of an adverse supply shock is
A.   rising output accompanied by decelerating inflation.
B.   falling output accompanied by accelerating inflation.
C.   rising output accompanied by accelerating inflation.
D.   falling output accompanied by decelerating inflation.
Question #3
The typical movement of the aggregate supply curve resulting from an increase in productivity is that it
A.   becomes steeper.
B.   shifts inward.
C.   shifts outward.
D.   shifts inward and becomes flatter.
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.   large budget deficits.
C.   low growth.
D.   balance of payments surpluses.

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