Question;Review Test Submission: Quiz 4Question 15 out of 5 points Which of the following is most nearly consistent with Say's law? Answers: When a person produces one good, he or she plans to demand other goods. When a person produces a good, he or she plans to sell it. When a person buys a good, he or she plans to pay for it with money. When a person goes to work, he or she plans to produce.Question 25 out of 5 points Exhibit 9-5Refer to Exhibit 9-5. Point A on graph (2) corresponds to which point(s) on graph (1)? Answers: I or J K L or M I or L J or MQuestion 35 out of 5 points A recessionary gap exists if (actual) Real GDP is __________ Natural Real GDP. Answers: less than greater than equal to b and c none of the aboveQuestion 45 out of 5 points According to Say's law, Answers: the demand curve is negatively sloped. the supply curve is positively sloped. supply creates its own demand. economic units should produce those goods for which they are low-opportunity-cost producers.Question 55 out of 5 points If the economy is in long-run equilibrium, Answers: prices will rise but wages will remain constant. neither prices nor wages will change. it is producing Natural Real GDP. prices will remain constant but wages may rise. b and cQuestion 65 out of 5 points Say's law says Answers: demand creates its own supply. the more supply there is, the lower prices are. supply creates supply. supply creates its own demand. none of the aboveQuestion 75 out of 5 points Which of the following is consistent with the classical position on wages and prices? Answers: Wages and prices are sticky in the downward direction. Wages are sticky in the downward direction, but prices are flexible. Wages and prices are flexible. Prices are sticky in the downward direction, but wages are flexible.Question 85 out of 5 points Exhibit 9-5Refer to Exhibit 9-5. Assume that the economy starts off at point A on graph (2) with an effective minimum wage law in place. After inflation erodes the purchasing power of the minimum wage, the economy is likely to move to a point such as Answers: B. G. F. C. None of the above, because the minimum wage has no influence on the amount of goods produced.Question 95 out of 5 points If the economy is in a recessionary gap, Answers: Real GDP is greater than Natural Real GDP. Real GDP is equal to Natural Real GDP. Real GDP is less than Natural Real GDP. the (actual) unemployment rate is less than the natural unemployment rate. a and dQuestion 105 out of 5 points The economy can operate Answers: beyond its institutional PPF but not beyond its physical PPF. on both its institutional PPF and its physical PPF, but not at the same time. under its physical PPF but not under its institutional PPF. a and b a, b, and cQuestion 115 out of 5 points Exhibit 8-4Refer to Exhibit 8-4. Which of the following could not have caused a shift in aggregate supply from SRAS1to SRAS2? Answers: an increase in productivity a beneficial supply shock a decrease in the price of a nonlabor input a change in the price level a decrease in wage ratesQuestion 120 out of 5 points If velocity and the money supply are __________________, then when one component of spending rises another component of spending ________________. Answers: constant, must fall constant, must rise rising, may not necessarily fall rising, must riseQuestion 135 out of 5 points A business firm's profitability is based in part on the Answers: prices of their nonlabor inputs. productivity of their workers. wages they must pay their workers. business taxes they must pay. all of the aboveQuestion 145 out of 5 points An increase in the money supply may __________ total expenditures, leading to a __________ shift of the AD curve. Answers: increase, rightward increase, leftward decrease, rightward decrease, leftwardQuestion 155 out of 5 points The expectation of lower future prices is a Answers: rightward shifter of the AD curve. leftward shifter of the AD curve. reason for moving up along a given AD curve. reason for moving down along a given AD curve.Question 165 out of 5 points Aggregate demand refers to the Answers: quantity demanded of all goods and services at various price levels, ceteris paribus. quantity demanded of all goods and services at a particular price level, ceteris paribus. quantity demanded of Real GDP at various price levels, ceteris paribus. various amounts of GDP that are demanded at various price levels, ceteris paribus. a and cQuestion 175 out of 5 points Exhibit 8-3Refer to Exhibit 8-3. A shift in aggregate demand from AD2 to AD1 would have been the result of Answers: a decrease in the price level. an increase in the price level. businesses become more optimistic about future sales. businesses become more pessimistic about future sales.Question 185 out of 5 points Exhibit 8-1Refer to Exhibit 8-1. If we assume that the unemployment rate and Real GDP are inversely related, which of the points on this graph is most likely representative of the lowest unemployment rate? Answers: A B C DQuestion 195 out of 5 points As the U.S. dollar appreciates and the Japanese yen depreciates, Answers: U.S.-produced goods become more expensive for the Japanese and Japanese-produced goods become cheaper for Americans. U.S.-produced goods become cheaper for the Japanese and Japanese-produced goods become more expensive for Americans. U.S.-produced goods become cheaper for both the Japanese and Americans. Japanese-produced goods become more expensive for both the Japanese and Americans. none of the aboveQuestion 205 out of 5 points The expectation of higher future income is a Answers: rightward shifter of the AD curve. leftward shifter of the AD curve. reason for moving up along a given AD curve. reason for moving down along a given AD curve.
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