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.   frictional unemployment.
B.   seasonal unemployment.
C.   structural unemployment.
D.   cyclical unemployment.
Question #2
The typical result of an adverse supply shock is
A.   falling output accompanied by accelerating inflation.
B.   rising output accompanied by decelerating inflation.
C.   falling output accompanied by decelerating inflation.
D.   rising 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.   shifts inward and becomes flatter.
C.   shifts outward.
D.   becomes steeper.
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.   inflation, which reduces purchasing power.
C.   disinflation, which maintains purchasing power.
D.   deflation, which increases 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 inward.
B.   becoming flatter.
C.   becoming more elastic.
D.   shifting outward.
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.   balance of payments surpluses.
B.   declining inflation.
C.   large budget deficits.
D.   low growth.

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